CONFIDENTIAL
FM BTC HONG KONG
TO PRIORITY DTI
TELNO OTTER 25
OF 02110OZ FEBRUARY 90
INFO ROUTINE FCO
FOR ROGER PEP1
CONFIDENTIAL
077701 MDLIAN 5240
3
M
11, Holroyd.
Elo+la
HKC 182
RECEIVED IN REGISTRY
14 FEB 1990
DESK OFFICER
INDEX
REGISTRY
zoom Taikomi
YOUR TELNO OTTER 21: THIRD HARBOUR TUNNEL
1. FREEMAN FOX ARE CURRENTLY CARRYING OUT THE FEASIBILITY STUDY FOR HONG KONG GOVERNMENT. IT WILL TAKE 12 -15 MONTHS TO COMPLETE FROM DECEMBER 1989 AND WILL INCLUDE OUTLINE DESIGN AND AN EVALUATION OF THE PROSPECTS FOR PRIVATISATION (TIMING, MECHANISMS ETC). THE REPORT IS DUE TO BE PRESENTED TO GOVERNMENT IN EARLY 1991. IT MUST BE LIKELY THAT THE GOVERNMENT WILL FOLLOW THE PROCEDURE ADOPTED WITH THE EASTERN HARBOUR CROSSING AND PREPARE A PACKAGE OF WHAT IT WANTS AND THEN SEEKS OFFERS TO DESIGN, CONSTRUCT, FINANCE AND OPERATE. PROBABLY THE EARLIEST CONSTRUCTION COULD START WOULD BE
1992.
2. I COVERED THE PROSPECTS FOR BRITISH PARTICIPATION IN THIS
PROJECT EXTENSIVELY IN MY OTTER 199 OF 26 SEPTEMBER LAST AND SUGGESTED THAT A BRITISH CONTENDER MIGHT TRY TO TEAM WITH KUMAGAI. KUMAGAI HAVE AN EXCELLENT TRACK RECORD ON CROSS HARBOUR TUNNEL WORK HERE. THIS WOULD NOT PRECLUDE UK COMPANIES FROM WINNING E.G. E AND M SUBCONTRACTS. THEY ULTIMATELY DID WELL ON THE EASTERN HARBOUR CROSSING WITH GEC TAKING A MAJOR SHARE.
3. TO THE EXTENT THAT THE BROAD UNDERSTANDING TO WHICH YOU REFER ENABLES UK COMPANIES WITH THE APPROPRIATE CAPABILITIES TO IMPROVE THEIR CHANCES OF SUCCESS IN WINNING MAJOR CONTRACTS I AM CONTENT. HOWEVER TH AND MATSUI WILL BE BIDDING I ASSUME FOR ONLY TWO OF THE MAJOR ELEMENTS (THREE IF TH CONTINUE THEIR INTEREST IN THE AIPORT PLATFORM) AND I WOULD SEE CONSIDERABLE DISADVANTAGE IF ANY SUCH UNDERSTANDING PRECLUDED OTHER UK COMPANIES, ESPECIALLY THOSE LONG ESTABLISHED HERE, BIDDING FOR ANY OR ALL OF THE OTHER UNITS. I STILL BELIEVE WE STAND TO GAIN MORE IF UK COMPANIES BID STRONGLY FOR ANY PART WHERE THEY HAVE THE EXPERIENCE AND ABILITY TO PERFORM WELL.
HEAP
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