PROPOSALS ARE INACCURATE OR UNLIKELY, THEN WE WOULD CALL OFF THE WHOLE EXERCISE.
INTERPRETER: EARLIER ON YOU TALKED ABOUT THE WORKING CAPITAL AND EMPLOYED CAPITAL OF HYUNDAI, YOU SAID THAT THEY WERE INADEQUATE. MY QUESTIONS ARE: ARE YOUR REQUESTS - ARE YOUR REQUIREMENTS THOSE REQUIRED INTERNATIONALLY, OR ARE THEY UNIQUE TO HONG KONG? AND ALSO, IF HYUNDAI HAS SUCH A BAD FINANCIAL POSITION, SHOULD THEY NOT ALSO BE ENCOUNTERING DIFFICULTIES IN CONTRACTS WITH OTHER INTERNATIONAL BODIES BECAUSE IN THAT WAY THEY ARE NOT FULFILLING ALL THE CRITERIA?
INTERPRETER: I WILL ASK MR BLAKE TO ANSWER.
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MR BLAKE: EVERY INTERNATIONAL CONTRACTOR MUST ESPECIALLY A CONSTRUCTION CONTRACTOR - DEPENDS UPON CASH-FLOW TO FINANCE HIS PROJECTS. NOW EVERY PROJECT HAS DIFFERENT CASH-FLOW REQUIREMENTS. IN THE CASE OF THE TSING MA BRIDGE, WE HAVE CONDUCTED A VERY DETAILED EVALUATION OF WHAT THE CASH-FLOW REQUIREMENTS ARE LIKELY TO BE AND WE ARE CONCERNED THAT IF OUR RULES FOR WORKING AND EMPLOYED CAPITAL ARE NOT ADHERED TO, IN THE FIRST INSTANCE, THEN THERE WOULD BE A VERY HIGH RISK OF THE CONTRACT CONCERNED BEING UNABLE TO COMPLETE THE PROJECT, OR MORE LIKELY, WOULD TAKE MUCH LONGER TO COMPLETE THE PROJECT THAN THE PROGRAMME ALLOWS. THIS IS A MATTER OF CAREFUL EVALUATION BY EXPERTS IN THEIR VARIOUS FIELDS FINANCIAL EXPERTS AS WELL AS TECHNICAL EXPERTS. IT IS SOMETHING WHICH IS DONE INTERNATIONALLY, IT IS DONE AGAINST EVERY PROJECT INTERNATIONALLY, AND THE SPONSORS AND THOSE RESPONSIBLE FOR EACH PROJECT HAVE TO MAKE THEIR OWN DECISION ON THE BASIS OF THE CIRCUMSTANCES THAT SURROUND THEIR PARTICULAR PROJECT.
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Q: I WANT TO CLARIFY ONE POINT. MY QUESTION IS, IS
IS SUCH KIND OF REQUIREMENT, THE GENERAL REQUIREMENT FOR ALL THE INTERNATIONAL TENDERING REQUIREMENT?
MR BLAKE: YES, EVERY INTERNATIONAL CONTRACT APPLIES THE SAME PROCEDURES---
Q: MUST FULFIL THE REQUIREMENT OF THE CAPITAL FUND AND EMPLOYMENT FUND. EVERY INTERNATIONAL TENDERING REQUIREMENT MUST FULFIL THIS REQUIREMENT.
MR BLAKE: WE HAVE OUR OWN RULES FOR WORKING AND EMPLOYED CAPITAL IN HONG KONG. EVERY INTERNATIONAL CONTRACT, THE CAPITAL ADEQUACY OF THE MAIN CONTRACTOR INVOLVED IS JUDGED ACCORDING TO THE RULES SET BY THE PROMOTER OF THAT PROJECT.
Q: MR YEUNG, MY QUESTION IS I UNDERSTAND THAT THE GOVERNMENT ONLY DISCOVERED THE CAPITAL INADEQUACIES OF HYUNDAT AFTER PRE- QUALIFICATION, SO EVEN THROUGH THEY COME UP WITH THE LOWEST BID, THEY CAN'T GET IT. WHAT ABOUT IF THIS ONLY HAPPENS AFTER AWARDING THE CONTRACT? WHAT WILL THE GOVERNMENT DO?
MR YEUNG: IF THEY HAVE ADEQUATE CAPITAL AND IF THEY HAVE ALREADY GOT THE CONTRACT AND IF WE ONLY DISCOVER THE INADEQUACIES LATER ON, THAT IS AFTER AWARDING THE CONTRACT WE WILL FIND MEASURES TO ASK THEM TO FILL THE INADEQUACIES. THERE ARE A NUMBER OF WAYS, THIS IS ONLY A HYPOTHETICAL QUESTION, I DON'T WANT TO ANSWER.
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