CONFIDENTIAL
XCC(92,9
establish a plant in Zhuhai, install the necessary equipment and employ staff. Should they fail to meet the necessary targets for this part of the project, they may be forced to look elsewhere for the cables. The only alternative source of supply is Japan, and this could put the cost of the cables up by some HK$500 million. Hyundai is expected to try to pass these costs on to the Government.
All-Japanese Consortium
25
The All-Japanese Consortium was a strong tenderer, including Nippon Steel, which has patented the techniques and achieved a high reputation for aerial spinning of cables. This Consortium has the most up- to-date experience in suspension bridge construction. Their bid showed a high level of technical appreciation and understanding of management issues. Their consortium members had adequate local experience. They did, however, exhibit a lack of unity between consortium members.
26
The proposal from the All-Japanese Consortium, priced at $8,954 million, was the most expensive of the tenders by a wide margin, and was rejected on this ground on 8 April 1992.
H.K. International Consortium
27
The tender price from H.K. International Consortium is the third lowest. The tenderer showed a good understanding of technical issues and laid proper stress on quality. The tenderer has a good knowledge of Hong Kong through its consortium members. Staffing proposals are strong, although the consortium proposed to locate top management outside Hong Kong in the first instance, which is considered likely to lead to delays. Some concerns have also arisen over their management of superstructure works. There is little doubt of the tenderer's overall ability to develop its proposals into adequate construction methods. The consortium has less recent experience of suspension bridge construction than the Anglo-Japanese Consortium. The probability of completion of the project on time is assessed to be 75-80 per cent, a little lower than that for the Anglo-Japanese. The financial position of the Consortium has been assessed on the same basis as for Hyundai, and has been found to be in order in all respects. The ability of the H.K.International Consortium is assessed to be near to that of the Anglo-Japanese Consortium; but on balance, and in view of their higher tender price, their proposal was not recommended.