The Government says it now hopes to be able to make a decision on deferral of the second half of China Light & Power's (CLP) $24 billion Black Point power station in two or three weeks. Secretary for Economic Services Stephen Ip had previously indicated he would give the Government's final view on the subject at a Legislative Council meeting yesterday. Mr Ip told the economic services panel meeting the Government still needed more information from CLP about the cost implications of delaying construction at the plant. 'It is an urgent matter and we want to resolve it as soon as possible,' he said. CLP managing director Ross Sayers said he hoped the company could come to an 'amicable solution' in the near term but he could not offer what he called an irrevocable guarantee it would be made in two or three weeks. 'The issue is complex. We must guard against being knee-jerked into a short-term political decision,' he said. It was left unclear what would happen if the Government and the company ultimately disagreed. It was last November that the Government asked CLP to delay construction of the final four phases of Black Point after heightened public concern at the high margin of extra electricity generated by the company. CLP's installed capacity is about 50 per cent higher than peak demand. Early last month CLP handed the Government a document outlining different deferral options and their likely impact on tariffs. The company said delay to the building of the fifth and sixth units was virtually impossible because of the advanced state of the work on them. Deferral of units seven and eight would cost an extra $270 million to $1.6 billion above planned capital expenditure, depending on the length of delay. CLP yesterday said that it had spent $400 million paying for work on Black Point since the Government first requested a delay in construction last November. This cash adds to the company's asset base and, under the workings of the scheme of control earnings agreement with Government, means the company's shareholders can earn a return on it. Comments made by some legislators at the meeting clearly implied that they thought it wrong that CLP could count this in its asset calculations as the money had been paid after the delay request. Mr Sayers said the company had contractual obligations to pay for work on certain dates or it risked legal moves against it. He said the company had complied with the spirit of the government request as it had made no new commitments for work at Black Point. He confirmed that extra payments were required over the next three weeks. POWER PLAY Government says it needs more information Legislators criticise asset calculations Deferral could cost company up to $1.6 billion