UNCLASSIFIED
HKA 182/3
UNCLASSIFIED
FM BTC HONG KONG
TO PRIORITY DTI
TELNO INTRA 246
OF 170926Z NOVEMBER 92
INFO PRIORITY FCO, ECGD, BANK OF ENGLAND
QUIST?
MAJOR HONG KONG PROJECTS: PROGRESS REPORT
182
056320
MDLIAN 5817
pa
SUMMARY
1. DECISIONS ON TWO MAJOR PROJECTS WILL BE TAKEN AND BIDS SUBMITTED FOR A THIRD BY THE END OF THIS MONTH OR IN EARLY DECEMBER. THESE ARE THE CONTRACTS FOR THE BLACK POINT POWER STATION, THE AIRPORT SITE PREPARATION AND THE ROUTE 3 TSING YI TUNNEL. BRITISH COMPANIES ARE IN GROUPS BIDDING FOR ALL THREE.
DETAIL
2. CHINA LIGHT AND POWER ARE ON THE POINT OF COMPLETING THEIR ASSESSMENT OF THE BIDS SUBMITTED BY GEC-A AND SIEMENS, THE TWO BIDDERS FOR THE POWER GENERATION PLANT. (TOTAL CONTRACT VALUE APPROX. GBP1.2 BILLION). CAPCO, THE CLP/EXXON JOINT VENTURE COMPANY, WHICH OWNS THE POWER STATIONS, WILL CONSIDER THE BIDS AT A SPECIAL BOARD MEETING ON 27 NOVEMBER WITH A VIEW TO ISSUING A LETTER OF AWARD TO THE SUCCESSFUL BIDDER ON 16 DECEMBER (THE CONTRACT WOULD TAKE EFFECT FROM 14 MARCH 1993). CAPCO WILL SIGN A GAS SUPPLY CONTRACT WITH ARCO ON 16 DECEMBER 1993. THE FINANCE PLAN FOR THE NEW STATION WILL HAVE TO BE AGREED BEFORE THAT DATE4 BY THE HONG KONG GOVERNMENT. INDICATIONS AT PRESENT ARE THAT GEC- A (WITH 45 PERCENT BRITISH CONTENT) AND SIEMENS (WITH 31 PERCENT BRITISH CONTENT) ARE RUNNING NECK AND NECK.
3 A DECISION ON WHETHER OR NOT TO PROCEED NOW TO SIGNING A CONTRACT WITH THE COSTAIN-LED CONSORTIUM TO BUILD THE AIRPORT SITE PREPARATION CONTRACT WILL POSSIBLY BE TAKEN BY THE END OF THIS MONTH. IF A DECISION IS DELAYED BEYOND THAT DATE THE BID PRICE MAY HAVE TO BE ADJUSTED UPWARDS TO TAKE ACCOUNT OF INFLATION. FUNDING FOR THE PROJECT STILL HAS TO BE APPROVED BY THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL, WHOSE LAST MEETING THIS MONTH WILL BE ON FRIDAY 27 NOVEMBER. WE ESTIMATE UK CONTENT TO BE 42 PERCENT OF POUNDS 610 MILLION TOTAL.
4. THE BIDS GO IN ON 27 NOVEMBER FOR THE ROUTE 3 TSING YI TUNNEL.
1
PAGE UNCLASSIFIED