TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 51

CONFIDENTIAL

ANNEX A

GUANGDONG PROJECT

Subsidy Element involved in the provision of Interest Subsidy

Conventional Island, Escalated Cost £598.44m

:

Actual HMG

Subsidy

Discounted HMG Subsidy

Subsidy Element

£m

£m

%

124.08

45.13

11.02

A. Present Offer

(85% + local costs)

B. Alternative Offer

157.21

53.86

13.15

(85%

Capitalisation)

C. Proposed Offer

184.95

63.37

15.47

(85% + local costs

+ capitalisation)

NOTE:

Discount rate used is the current long term dollar bond rate of 11.6%