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FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 43
OF 300926Z JANUARY 91
INFO PRIORITY F C 0, TOKYO, PEKING, ECGD
15
&
A
Pa
172500 MDLIAN 4729
129
FOR ADAMS, HEAD OF PEP
MY TELNO OTTER 32: HONG KONG AIRPORT PROJECT
1.
IT APPEARS THAT WIMPEY'S MAIN PARTNER IN GOING FOR THE AIRPORT PLATFORM WILL BE NISHIMATSU. FORREST OF WIMPEY DENIES THAT THEY YET HAVE A FIRM AGREEMENT, BUT OTHERS IN THE CONSTRUCTION INDUSTRY HERE SEEM TO THINK THAT IT IS ALL SEWN UP. NISHIMATSU ARE VERY STRONG IN HONG KONG, AT LEAST AS STRONG AS KUMAGAI). THEY ARE CURRENTLY WORKING ON THE TAIT'S CAIRN TUNNEL AND HAVE DONE MAJOR WORKS IN THE PAST INCLUDING THE CONTAINER TERMINALS. IF CONFIRMED THIS WILL BE A STRONG COMBINATION EVEN WITHOUT ANY OTHER PARTNERS FROM EUROPE OR CHINA, AND FORREST HAS CERTAINLY BEEN INTERESTED IN ATTRACTING BOTH. IN MY VIEW THIS IS A VERY WELCOME DEVELOPMENT, DESPITE OUR OFFICIAL SUPPORT FOR COSTAIN AND THE AJC GROUP: IT SHOULD SIGNIFICANTLY INCREASE THE ODDS ON BRITAIN GETTING SOME SIGNIFICANT WORK.
2.
THE OPEN OF PRE-QUALIFICATION FOR THE AIRPORT PLATFORM NOW APPEARS TO HAVE SLIPPED. IT HAD BEEN EXPECTED THAT APPLICATIONS FOR PRE-QUALIFICATION WOULD BE SOUGHT WITHIN THE NEXT WEEK OR TWO. IT NOW SEEMS THAT PRE-QUALIFICATION WILL TAKE PLACE IN APRIL WITH TENDERING TO BEGIN IN JUNE. THIS BECAUSE OF A GOVERNMENT DECISION TO GO FOR A PARTIALLY DREDGED AND PARTIALLY DRAINED RECLAMATION SOLUTION FOR THE PLATFORM, INSTEAD OF AN ALL DREDGED SOLUTION RECOMMENDED BY THE CONSULTANTS. FURTHER DESIGN WORK WILL NOW BE REQUIRED BEFORE PRE-QUALIFICATION BEGINS. ACCORDING TO DOWNER, CHIEF EXECUTIVE OF MAUNSELL, EVEN THIS SHORT DELAY IS LIKELY TO MEAN THAT THE AIRPORT CANNOT BE COMPLETED BY THE TARGET DATE OF JANUARY 1997. THEY BELIEVE AT LEAST AN EIGHT MONTH PERIOD AFTER THE AWARD OF THE AIRPORT PLATFORM CONTRACT WILL BE REQUIRED BY THE WINNER FOR THE ACQUISITION OF THE NECESSARY PLANT AND EQUIPMENT. THE PLANT AND EQUIPMENT WILL HAVE A VALUE OF ABOUT HKD ONE BILLION OUT OF A TOTAL COST OF THIS PART OF THE PROJECT OF HKD 7 BILLION.
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