RESTRICTED COMMERCIAL IN CONFIDENCE
143
057612
MDLIAN 9694
PKA 182/3
RESTRICTED
COMMERCIAL IN CONFIDENCE
FM BTC HONG KONG
TO PRIORITY DTI
TELNO 139
OF 02090OZ JUN 92
INFO PRIORITY FCO, ECGD
la
FOR HALL (PEP)
63
Mi
м
Mr (31
Na
لمان
1. Stone For 1/18/6
Lood
Doc nurs
asers for to th
U-K-Coe
MY INTRA 70: PADS: NORTH LANTAU EXPRESSWAY PHASE 1
O
Cheres thang
Nummer
1 THE AMEC GROUP HAVE BEEN AWARDED THE CONTRACT ON A BID PRICE OF HK DOLLARS 3.5 BILLION. AMEC'S SHARE AMOUNTS TO 27 PER CENT OR HK DOLLARS 945 MILLION. A LETTER OF ACCEPTANCE FROM HIGHWAYS DEPARTMENT ISSUED THIS MORNING. THE CONTRACT WILL BE FORMALLY SIGNED ON 11 JUNE ALTHOUGH WORK WILL START ON 8 JUNE.
2.
SPECULATIVE REPORTS ABOUT THE AWARD OF THIS CONTRACT APPEARED IN THE SOUTH CHINA MORNING POST TODAY UNDER A FRONT PAGE BANNER HEADLINE QUOTE CHINESE GROUP TO WIN CONTRACT UNQUOTE AND A STORY THAT A CHINESE LED CONSORTIUM IS POISED TO WIN THE CONTRACT TO BUILD THE TAI HO SECTION OF THE NORTH LANTAU EXPRESSWAY. THE MAIN CHINESE INVOLVEMENT IS THROUGH CHINA FUJIAN CORPORATION WHO WILL UNDERTAKE MUCH OF THE DREDGING WORK. LATER IN THE SAME SCMP ARTICLE REFERENCE WAS MADE TO OTHER WINNING CONSORTIUM MEMBERS VIZ DOWNER (NEW ZEALAND), AMEC (UK) AND ELTIN (AUSTRALIA). HYUNDAI, WHO BID FOR SOME OF THE DREDGING WORK INITIALLY WERE DROPPED FROM THE CONSORTIUM JUST BEFORE THE BID WAS SUBMITTED AND REPLACED WITH THE APPROVAL OF THE CENTRAL TENDER BOARD BY UNIVERSAL DOCKYARD. AMEC WILL HAVE A PROJECT MANAGEMENT ROLE.
3. AMEC, AS PART OF THE SAME CONSORTIUM, WILL BE BIDDING ON 26 JUNE, FOR PHASE II OF THE NORTH LANTAU EXPRESSWAY. IN CIVIL ENGINEERING TERMS THIS WILL NOT BE AS COMPLICATED A PROJECT AND OTHER LESS SPECIALISED CONTRACTORS ARE EXPECTED TO ENTER THE RACE. THE AMEC GROUP'S SUCCESS ON PHASE I SHOULD STRENGTHEN THEIR HAND. ECONOMIES OF PLANT UTILISATION, ALLOCATION OF LABOUR ETC IN WHAT WILL BE A PARALLEL PROJECT OUGHT TO GIVE THEM AN EDGE.
DAY