UK nuclear stake eyed by Chinese
Sep 24 - McClatchy-Tribune Regional News - Tom McGhie Financial Mail
on Sunday, London
China is this week poised to take its first step towards a
multi-billion pound stake in the programme to build Britain's new
nuclear power stations.
An announcement is expected to confirm that a Communist State-run
company is set to invest up to pounds sterling 5 billion in two nuclear
plants.
The bid to buy into Horizon, a joint venture that owns Wylfa power
station in Anglesey, North Wales, and Oldbury, Gloucestershire, is just
the start of a massive Chinese investment.
After months of highly sensitive talks with Whitehall officials, the
Chinese are expected to show their hand when two consortia reveal bids
for Horizon, which is jointly owned by RWE and Eon. Horizon owns and
runs Wylfa and Oldbury and the land on which the new power stations are
to be built.
One bid is expected to come from Toshiba/Westinghouse in association
with the State Nuclear Power Technology Corporation of China and Exelon
of the US. A rival bid is expected from Areva, French maker of nuclear
reactors, alongside the Guangdong Nuclear Power Corporation.
Each nuclear power station will cost pounds sterling 5 billion to
build. It is understood that the Chinese have been told that they cannot
have a majority stake for political reasons, although they could provide
nearly half the money.
The prospect of the Chinese owning such a strategic part of Britain's
energy infrastructure has been alarming some politicians.
Conservative MP Mark Pritchard, a member of the parliamentary Joint
National Security Committee, said any Chinese involvement in Britain's
nuclear plans would raise a number of concerns.
"The Coalition should consider retaining a controlling stake," he
said. "There would also need to be national security safeguards over any
Chinese design and build."
Nick Butler, a former energy adviser to Number 10, has also expressed
fears about Chinese involvement in any potential Horizon bids.
Both Chinese companies in the rival consortia for the Horizon bid
have been involved in talks with EDF. The French energy giant, along
with British Gas owner Centrica, plans to build two power plants -- at
Hinkley Point, Somerset, and Sizewell, Essex.
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