Power firm shrugs off reform row
THE row between Britain and China over Hongkong Governor Chris Patten's democratic reform package does not seem to have affected Sino-British economic relations, at least not for British company National Power.
China's Minister of Foreign Economic Relations and Trade said last week that if Mr Patten clung to his policies on democratic reform, Sino-British trade relations might suffer.
Despite the threat, ''the attitude that the Chinese have shown towards us has been extremely positive and welcoming'', said National Power executive director Graham Hadley.
''It is clear that this dispute . . . is at the back of their minds, but they have not allowed it to . . . diminish or cloud in any way the nature of the invitation we have had and the welcome we have had.'' Mr Hadley, who was attending a business seminar in Beijing yesterday, said his company was currently doing a feasibility study for a coal-fired power plant in Zhejiang province, a project that would probably be worth US$1 billion.
National Power, Britain's largest electricity generator, hopes to manage the Zhejiang power company as well as source fuel and organise financing for it.
''It's the kind of size of project which is being proposed all over China, so in the Chinese context it's not particularly unusual. But the fact is, a private venture power station of that size had not been done so it would be a first,'' Mr Hadley said.
''There's hard work to be done. We're not expecting this to mature in the next few months.'' Travelling with National Power chairman Sir Trevor Holdsworth, Mr Hadley said he had met Mr Wai Mingyi, president of CITIC, China's largest investment company, and other members of the CITIC board.
CITIC would be the lead Chinese investor for the Zhejiang project, and it is expected that GEC would supply turbine generators.
Asked if there was any hint that British firms might be cut out of business deals because of the current Sino-British dispute, Mr Hadley said: ''No, not at all.'' Mr Patten's name had not come up in talks with Chinese officials, he said.
''We're certainly not holding back and we're hopeful, obviously, that difficulties don't arise from the political direction.
''It's the same really throughout the world. Power generation is always a business which can be influenced by governments . . . so I think we have to be philosophical about that. Looking internationally, the political risk is always something we assess.
''Clearly if we were at the point of a major capital commitment and if at that time there were a serious threat that contracts might be broken off, then we would have to think twice. . . But the present situation is nothing like that.'' Even if the dispute were to sharpen, said Mr Hadley, ''I think we would want to maintain our interest in the Chinese market.
''Our interest is long-term . . . We're prepared to be patient.'' National Power hopes to win a number of contracts over the next few years and has already had what Mr Hadley described as ''excellent discussions'' with the Guangdong authorities.
Mr Hadley said his company was well-positioned to help the Chinese finance power projects, procure equipment and improve efficiency.
''We would want to hold an operating contract for as long a period as the Chinese feel comfortable with, but preferably something like 15 or 20 years,'' he said.