Siquificame dunflation
French subsuly
This submission considers how far HMG should go to help Metro
Cam to reduce the price they have bid to provide 45 3-coach
train sets for the refurbishing of that section of the
Kowloon/Canton railway which runs on Hong Kong territory.
Transmark, British Rail's consultancy arm, are advising the
Hong Kong Government who intend to pay cash out of revenue.
Present provision is HK$289 million.
Bids have been opened and given a first examination by the
Hong Kong tender board. In confidence Transmark tell us
that the amounts bid are:-
Hawker Siddeley, Canada
C Itoh, Japan
50 Cycle Group
Metro Cam
HK$ 6.8m per set for 45 3-car train sets
HK$ 8m per set
Thought to be HK$ 9m per set
HK$ 10.5m
The Metro Cam and 50 Cycle Group (a German/Swiss/French
consortium) bids are technically compliant. There is some
doubt about the electrical equipment proposed by the Japanese.
Hawker Siddeley are not compliant because theirs is not a fixed
price.bid. The tender board are expected to look again at
the bids on Wednesday 15 November. The finance committee
of the governing council will consider the implications on
29 November. It is not certain that money will be found to
provide the train sets at the price of the recommended tender.
tender.
We understand on good authority that the Hong Kong Government
now believe that they have 3 options:-
a.
to accept the European bid (the Japanese offer
seems to be too low and there are valid doubts about
the further appreciation of the yen);
b. to argue that the British bid is politically
desirable and that there will be a reduction in price