CONFIDENTIAL
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CONFIDENTIAL
FM BTC HONG KONG
TO PRIORITY DTI
TELNO OTTER 98
OF 300924Z APRIL 91
INFO PRIORITY FCO, PEKING, TOKYO, ECGD
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INDEX
63
154440
MDLIAN 7179
MKB 182 13.
RECEIVEDUN
08 MAY 98
FOR ADAMS, HEAD OF PEP
MY TELNO OTTER 97: HONG KONG AIRPORT PROJECT
m
1. MALWYN JONES AND PRENTICE OF BALFOUR BEATTY CALLED ON ME TODAY 30 APRIL AND CONFIRMED THAT THEY WOULD BE SEEKING TO PREQUALIFY FOR THE AIRPORT PLATFORM CONTRACT. THEY SAID THEY WOULD ALSO BE BIDDING IN DUE COURSE FOR THE CROSS HARBOUR TUNNEL.
2. FOR THE PLATFORM THEY HAVE PUT TOGETHER TWO JOINT VENTURES WHICH WILL COMBINE TO FORM ONE CONSORTIUM WHICH THEY WILL LEAD. THE FIRST JOINT VENTURE, FOR MARINE AND DREDGING WORK WILL COMPRISE IN ADDITION TO THEMSELVES OF HYUNDAI (KOREA), BLANKEVOORT (HOLLAND) AND DRAGONAS (ITALY). THE SECOND JOINT VENTURE FOR THE LAND CONSTRUCTION WORK WILL COMPRISE IN ADDITION TO THEMSELVES OF HOPTKIEF (GERMANY), LEIGHTON CHONG KONG, BUT PART OWNED BY HOPTKIEF AND PART BY AN AUSTRALIAN COMPANY), FRANKI KIER (I.E. BEAZAR GROUP) (UK), OBYASHI (JAPAN) AND DILLINGHAM (USA). IN ADDITION TO BEING OVERALL LEADER BALFOUR BEATTY WOULD RUN THE LAND JOINT VENTURE BUT HYUNDAI WOULD HEAD THE MARINE WORK JOINT VENTURE. THEY STRESSED THAT A PARTICULAR STRENGTH OF THE MARINE GROUP WOULD BE THAT THEY ALREADY HAVE SUFFICIENT EQUIPMENT OWNED BY MEMBERS OF THE GROUP TO DO THE WORK. HYUNDAI WERE PARTICULARLY STRONG IN THIS PROSPECT.
3. THEY WERE LESS WELL ADVANCE IN PUTTING TOGETHER THE GROUP FOR THE WESTERN HARBOUR CROSSING BUT IT WOULD INCLUDE WHARF CHONG KONG), BALLAST NEDAM, KIER INTERNATIONAL AND FRANKI KIER (BEAZAR GROUP) (UK AND HONG KONG) AND INTERBETTON CHAM GROUP) (HOLLAND).
4. FOR THE PLATFORM CONTRACT THE UK SHARE IN THE GROUP, COMPRISING LARGELY BALFOUR BEATTY AND KIER, WOULD BE APPROXIMATELY 25 PERCENT. OVERALL THEY SAW 35 PERCENT OF THE WORK CONSISTING OF DREDGING AND MARINE, AND 65 PERCENT THE LAND CONSTRUCTION. MOST OF OUR LONG MEETING WAS DEVOTED TO A
DISCUSSION OF THE POLITICAL SITUATION SURROUNDING THE PROJECT
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CONFIDENTIAL