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063626 MDLIA 3395

GROUP WHICH INCLUDES GREINDER (USA), YOKOGAWA BRIDGE (JAPAN) AND HITACHI (JAPAN). TENDERS WILL CLOSE IN MAY. UNLIKE THE MAIN BRIDGE, TENDERERS WILL HAVE TO SUBMIT THEIR OWN DESIGNS, WHICH ACCOUNTS FOR THE LONG TENDERING PERIOD. THE VALUE WILL BE ABOUT POUNDS 450 MILLION. AGAIN TRAFALGAR HOUSE/COSTAIN CARRY THE MAIN BRITISH HOPE. THIS AND THE TSING MA BRIDGE CONTACT MAY BE GIVEN TO THE SAME GROUP TO DO BOTH, WHICH COULD PROVIDE OBVIOUS COST SAVINGS, OR THEY MIGHT BE AWARDED SEPARATELY.

(B) SITE PREPARATION

4.

THE SIX GROUPS LISTED IN MY TELNO OTTER 195 HAVE QUALIFIED TO BID FOR THIS POUNDS 750 MILLION CONTRACT. TENDER DOCUMENTS WILL BE AVAILABLE EARLY IN NOVEMBER, TO BE SUBMITTED IN FEBRUARY 1992 AND A CONTRACT AWARDED IN SPRING 1992. AMEC OF THE UK HAD SOUGHT TO PRE-QUALIFY BUT FAILED TO DO SO, BUT THEIR CHAIRMAN (COCKSHAW) IS IN HONG KONG NOW, AND THEY WILL BE TRYING FOR OTHER PARTS OF THE PROJECT. IT IS STILL HARD TO KNOWN WHETHER THE TRAFALGAR HOUSE/ COSTAIN GROUP OR THE BALFOUR BEATTY GROUP WOULD GIVE THE MOST WORK TO THE UK. I KNOW LITTLE ABOUT MOWLEM'S SHARE IN THEIR GROUP SINCE THEY HAVE NOT BEEN IN CONTACT WITH US, BUT SUSPECT IT IS SMALLER THAN THE BRITISH SHARE IN THE OTHER TWO. BUT ALL GROUPS WILL BE MAKING ADJUSTMENTS IN THEIR WORK SHARING UNTIL THE BIDS GO IN IN FEBRUARY. IT IS SIGNIFICANT HOWEVER THAT THE JAPANESE REPRESENTATION IS SO STRONG IN EVERY ONE OF THE PRE- QUALIFIED GROUPS: JAPAN LTD CANNOT LOSE. THE SIZE AND SCOPE OF THIS CONTRACT IS ENORMOUS. ALTHOUGH IT IS RELATIVELY LOW TECHNOLOGY THE RISKS ARE HIGH, SINCE NEVER BEFORE IN THE WORLD HAS SO MUCH ROCK MOVING AND LAND FILL BEEN DONE SO QUICKLY. IT WILL REQUIRE MOST OF THE WORLD'S AVAILABLE EARTH MOVING EQUIPMENT. IT WILL REQUIRE MOVING SOME 240 TONS OF ROCK AND FILL

A MINUTE (SIC) 20 HOURS A DAY FOR ABOUT 2 YEARS. THERE ARE THEREFORE ALSO HUGE OPPORTUNITIES FOR EQUIPMENT SUPPLIERS. CURRENT WORK ON CHEK LAP KOK IS USING 50 TON DUMP TRUCKS FROM TEREX OF THE UK: THE REQUIREMENT UNDER THE MAIN CONTRACT WILL

INCLUDE VEHICLES UP TO 172 TONS. THERE ARE OPENINGS FOR CRANE

MANUFACTURERS, AND, SURELY, FOR LAND ROVERS.

(C) WEST KOWLOON RECLAMATION

5. THE THREE CONTRACTS FOR THIS WORK, TOTALLING ABOUT POUNDS 750 MILLION WERE LET EARLIER IN THE YEAR TO KUMAGAI (JAPAN), SHUI ON CHONG KONG) AND GAMMON (HONG KONG BUT HALF OWNED BY TRAFALGAR HOUSE AND HALF BY JARDINES). WORK APPEARS TO BE WELL ON

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