TAR was told that there is absolutely no enthusiasm being shown from North America or Europe and that, in all likelihood, members of the original Japanese consortium, which backed out of the scheme with the breakdown of negotiations with the Hongkong Government, will eventually end up with the best bids anyway.
Since the Japanese appear likely to obtain the lion's share in building a system which is now less than half the size of the original at about the same price (or more), the Japanese will be getting an infinitely better deal without any of the original overall responsibilities.
So much for Mr Haddon-Cave's business acumen!
Next month the Hongkong Government will call for tenders for a couple of stations worth about $200 million each. The tenders are supposed to be in by August, and then the Government will have a very good idea about how things are looking in regard to the consultant's estimates.
It is possible that some of the contractors who are now considering looking for a slice of the Haddon-Cave Christmas Party Cake will pull out completely.
One point which is worrying local and foreign contractors considering participating is that there is a penalty clause built in to all contracts that if a contractor is tardy, he will be fined $100,000 a day.
Because of this, all tenderers will probably build into their bids a 30-percent price safety factor to cover themselves and thus inflate our costs even further.
Paul Y Construction, especially, is believed to be very worried about even making a bid without covering itself completely with at least 3 month's leeway in completion time.
.Late last week the Government's would-be businessmen held a little tete-a-tete to decide the next move following the shocking revelations of the computer analysis of estimated revenue,
The Government, with all the best intentions in the world, has come to a point now where it would appear that the only people really interested in going ahead are those companies with vested interests.
TARGET wonders whether it would have been preferable to leave the underground railway to private enterprise which produced a real money-spinner in, the Cross
Harbour Tunnel.
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