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ANNEX C to XCS(73)8
PROPOSALS RECEIVED FROM THE ITALIAN CONSORTIUM
(I.M. INTERMETRO S.p.A.)
Part I Summary of Proposals
Consortium's Organisation
I.M. Intermetro S.p.A. is a single company, founded in March 1969 as a partnership of seven large Italian companies to undertake public sector transport projects (especially underground railways). Although it would normally employ both Italian and foreign sub-contractors (in addition to its own partner companies and their numerous subsidiaries), the company retains direct control of the planning, co-ordination and supervision of all the works involved. Thus, should it be awarded the contract to construct and equip the MTR, the company will bear full responsibility to the client for all aspects of the contract.
Contractual Arrangements Proposed
2
Intermetro proposes to negotiate a unit price contract for the detailed design, construction and equipment of the first four stages of the MTR, as well as for project co-ordination and management. Unit rates (which would be subject to variation on grounds of cost escalation) would be agreed for various types of civil engineering work, and these would be applied to quantities of work as finally remeasured. On the E & M side, a lumpsum price (which would also be subject to escalation) would be agreed.
3
Intermetro proposes generally to adopt standard international conditions of contract, but have specified a number of additional requirements, the main ones being that:
4
(a)
(b)
(c)
the Hong Kong Government should give an undertaking to exempt all payments under the contract from any exchange controls which might be imposed during the contract period;
the client should provide free of charge the necessary work, storage, workshop and camp sites, including land for the accommodation of expatriate workers, to enable the company to undertake construction; and
there should be no restrictions on the importation of workers from sources outside Hong Kong;
(the company recognises, however, that it must accept the Hong Kong Government's ruling on each individual application).
Intermetro has offered to execute a performance bond for the successful completion of the project, and to provide a warranty or guarantee against defective work for a period of one year from the commencement of operations.
Pricing
(a) Price indications
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The company has estimated the total contract price at mid- 1972 prices to be as follows (based on the exchange rate HK$1 = Lire 115):
Civil engineering and building
Supply and installation of E & M
plant and equipment
Management fees
Total
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HK$ mn
1,380
1,003
191
2,573
/.... (b)