Ou
the department for Enterprise
The Airport
5. The new airport project is getting into its stride. Two key contracts are imminent:
a)
b)
The consultancy award for the design of the new airport itself. This will be announced in a few days and, while it was made clear to us that no final decision had yet been taken, we had a number of hints that the main UK group (BAA, Norman Foster and others) are strongly placed.
The Lantau Fixed Crossing the very large bridge linking the island airport to the mainland. This is the largest single element of the whole project. The Governor confirmed earlier informal reports that the Anglo-Japanese consortium (including Trafalgar House and Costain) put in the second lowest bid (at much the same level as another international consortium with a small UK interest), significantly above a Korean bid and well below that of an all
Japanese consortium. There are widespread doubts in Cork,
Hong Kong about the wisdom of giving such a crucial contract to the Korean group which has a negligible track record in large bridge building of this kind. We heard a number of suggestions that, if the Koreans were to win, this could lead to a crisis of confidence in the project itself, and that bankers and others would call in question the seriousness and commitment of the Hong Kong Government. The all Japanese consortium appears to be out of the running. The main competition is thus likely to come from the other international consortium. The contract is likely to be awarded in April. No chickens should yet be counted, but the present position is very encouraging. Detailed discussions continue between the consortium and the Hong Kong Government. There is no need for any intervention by the Department at this stage.
Power Generation
6. The major prospect is the Black Point power station, where GEC Alsthom, in partnership with GE of the United States are in competition with Siemens. There may also be substantial opportunities for Babcock as a junior partner to either of these bidders. The intention of China Light and Power, and their major shareholder, Exxon, is to run a limited competition between these two seeking a good deal of information, though falling short of a full bid, by June or July this year. They then propose to eliminate one runner and negotiate further with the other, awarding a contract by the
Of Brita
hrinersmen:
Recycled Paeser
598-273