RESTRICTED
RESTRICTED
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1231
OF 07040OZ MAY 92
HKA 182/3
TOP COPY
Q DIST?
INFO IMMEDIATE TOKYO, SEOUL, PARIS, BONN, ROME, WASHINGTON INFO IMMEDIATE PEKING, CANBERRA, OTTAWA, SINGAPORE, INFO IMMEDIATE BTC HONG KONG, UKREP JLG HONG KONG
164015
MDHIAN 3006
Pa
HONG KONG'S NEW AIRPORT PROJECT: AWARD OF TSING MA BRIDGE CONTRACT.
SUMMARY
715
1. THE HONG KONG GOVERNMENT IS ANNOUNCING AT 040OZ TODAY (7 MAY) THAT IT WILL AWARD THE CONTRACT FOR THE TSING MA BRIDGE TO THE ANGLO-JAPANESE CONSORTIUM. THE LOWEST TENDER FROM HYUNDAI ENGINEERING AND CONSTRUCTION CO OF SOUTH KOREA WAS NOT ACCEPTED, MAINLY DUE TO HYUNDAI'S WEAK FINANCIAL POSITION. REASONS FOR THIS
DECISION.
DETAIL
2.
THE CENTRAL TENDER BOARD (CTB) HAS DECIDED TO AWARD THE TSING MA BRIDGE CONTRACT CONTRACT TO THE ANGLO-JAPANESE CONSTRUCTION JOINT VENTURE (ANGLO-JAPANESE CONSORTIUM). THE CONSORTIUM CONSISTS OF DORMAN LONG OVERSEAS (UK), CONSTAIN CIVIL ENGINEERING (UK), AND MITSUI (JAPAN). ITS PRINCIPAL
SUBCONTRACTORS INCLUDE A MIX OF COMPANIES ESTABLISHED IN HONG KONG, CHINA, KOREA, CANADA, JAPAN, AND FRANCE. THEIR TENDER PRICE WAS THE SECOND LOWEST AMONG THE FOUR PREQUALIFIED TENDERERS. THE CONSORTIUM SCORED BEST ON ALL OTHER ASSESSMENT CRITERIA (INCLUDING TECHNICAL, AND FINANCIAL), AND ABILITY TO COMPLETE ON TIME.
3. THE LOWEST TENDER SUBMITTED BY THE HYUNDAI ENGINEERING AND CONSTRUCTION CO. CHYUNDAI) WAS CONSIDERED BY THE CENTRAL TENDER BOARD NOT/NOT TO BE ACCEPTABLE. DESPITE REPEATED ATTEMPTS TO GET THEM TO RECTIFY THE POSITION, HYUNDAI FAILED TO COMPLY WITH GOVERNMENT'S STANDARD REQUIREMENTS FOR WORKING AND EMPLOYED CAPITAL. THEY WERE ALSO WEAKER ON TECHNICAL GROUNDS THAN THE OTHER TENDERS RECEIVED. THE TENDER FROM THE ANGLO-JAPANESE CONSORTIUM WAS EVENTUALLY APPROVED ON THE BASIS THAT IT WAS THE
PAGE
1
RESTRICTED
115