HC Deb 24 July 1990 vol 177 cc156-7W
Mrs. Clwyd

To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to the answer of 19 July, when an appraisal of the Rihand power station project will begin; when it will be completed; and who is carrying out the assessment.

Mrs. Chalker

The appraisal of the power station will be taken forward in a series of studies: an initial assessment of issues was conducted in October 1989; if a contract is awarded to a British contractor and British aid funding is requested, a further appraisal will be carried out to assess the economic, financial and engineering aspects of the proposed contract and, in the light of the World bank's study of the Singrauli area, of the environmental aspects of the project. As the contract has yet to be awarded, it is not possible to say when these further studies will be completed. The appraisal studies will be led by staff from the Overseas Development Administration and may call on expertise from outside the administration.

Mrs. Clwyd

To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to the answer of 3 July,Official Report, column 489, what is the value of the provisional offer of aid for the second stage of Rihand power station; what is the total value of the contract for the second stage; which British company has been nominated as the main contractor; and what is the exact megawattage of the second phase.

Mrs. Chalker

No commitment has been given to a specific amount of aid. Before making any such commitment, the Overseas Development Administration will need to be satisfied that the proposed contract price and the project as a whole represent a cost-effective and environmentally sound approach to power generation in India. Following international tendering, discussions are in progress between the client, the National Thermal Power Corporation, and contractors, and the value of any contract has therefore yet to be determined. GEC was nominated as the main British contractor in 1987. The proposed second phase of the power station will be for 1,000 M W.