SECRET
For discussion
on 11th December 1973
XCS(73)12 Copy No.3.2
MEMORANDUM FOR EXECUTIVE COUNCIL
ARRANGEMENTS FOR THE CONSTRUCTION AND EQUIPMENT
OF THE MASS TRANSIT RAILWAY
A
Introduction
On 31st July 1973 after considering memorandum XCS(73)8 (a copy of which is at Annex A), Honourable Members advised and the Governor ordered, inter alia:
(a)
(b)
(c)
that in principle the single-contract approach (i, e. awarding the contract for construction and equipment to one consortium) be adopted for the first four stages of the Mass Transit Railway;
that further exchanges be entered into with the four consortia listed in paragraph 8 of the memorandum, with a view to bringing at least one of them up to the requirements set out at Annex F (to memorandum XCS(73)8);
that the Steering Group be authorised to select the consortia with which to enter into actual negotiations, subject to the proviso that the final selection of a particular consortium would not be made without further reference to Executive Council,
2
In accordance with the above decisions, the Mass Transit Steering Group held a further round of meetings with the four consortia in London and Tokyo. At these meetings, the Steering Group:
(a)
conveyed to the consortia the Government's decisions;
(b)
(c)
explained to them the Government requirements for a single-contract arrangement (i. e. Annex F to memorandum XCS(73)8), with particular emphasis on the ceiling price concept and the $5,000 million limit on the ceiling price;
sought from each consortium an indication as to whether they would be prepared to negotiate a contract on the basis of the Government's requirements.
In the event, all four consortia confirmed their continued interest in bidding for the contract for the project.
SECRET