JVERMENT HOUSE HONG KONG.
WED 66 MAY 92 10:33
PG.05
CONFIDENTIAL
"Contractors
need
liquidity 50 that
purchase of
contract. Adequate
adequate working capital to maintain
they can finance outgoings on the
employed capital is needed for the
fixed assets such as construction plant and
other capital equipment.
"Means to meet Our requirements were pointed out to
Hyundai by way of
an inter-group
guarantee and an
irrevocable letter of credit to cover that part of the
employed and working capital deficiency that Hyundai were
not able to meet by other means. Hyundai have not been able
to offer us satisfactory assurances that their position
would be corrected.
The tender evaluation procedure carried out by the Hong Kong Government has encompassed:
a) a comparison and evaluation of tender prices,
including their net present value which enables prices to be assessed on a uniform cash basis;
b)
assessments
of
technical and management
competence;
team
c) evaluation of the programme for construction;
d) compliance with Government contract conditions.
The Government was advised on technical matters by a
experts in suspension bridge
of international
construction.
Except for its tender price being second lowest,
Anglo-Japanese consortium
came first against all the assessment criteria. The consortium is very experienced in major bridge construction, including large suspension
bridges, and in achieving requisite quality standards. The
risk of project delay is assessed as the lowest. The
consortium has also complied with the Government's standard requirements on employed and working capital.