THE AIRPORT CORE PROGRAMME
government; 48 contracts worth about $33.9 billion awarded by the AA; 31 contracts at a total cost of $17.8 billion awarded by the MTRC; and one construction contract awarded by the WHTC at a cost of $5.7 billion.
The government, AA, MTRC and WHTC welcome international participation in ACP contracts and strictly apply Hong Kong's traditional 'level playing field' approach in tendering procedures and the award of contracts. A significant number of international companies from a wide range of countries have won ACP contracts, often as part of joint ventures. By the end of 1996, Japan had won the largest share by value with 26 per cent of the total, followed by Hong Kong (23 per cent), the United Kingdom (16 per cent), the People's Republic of China (8 per cent), the Netherlands (6 per cent), France (5 per cent), Belgium (3 per cent), New Zealand (3 per cent), Spain, Australia, the United States of America and Germany (each about 2 per cent). The remaining 2 per cent was shared by Italy, South Africa, Austria, Norway, Portugal and Denmark.
Management and Cost Control
After the establishment of an overall strategy on the scope, programme and budget for the ACP, regular reviews continued in 1996. The strategy is the basis for the overall programme and its project management system. Fixed-price, lump-sum contracts are being used for most projects to minimise risks to the government, especially from inflation and changes in the estimation of quantities.
Management and control systems have been implemented for the ACP, laying down procedures for monitoring and controlling programme progress and costs. during the design and construction of the projects. Early warning of possible cost increases are reported to the New Airport Projects Co-ordination Office (NAPCO) and relevant department heads. Trends which could lead to cost increases are identified at an early stage. If cost increases are accepted, off-setting savings are sought in the same or other ACP projects. In addition, the government's competitive tendering system has enabled it to obtain value for money on the ACP contracts.
Government works departments, the AA, MTRC and WHTC have full responsibility for their own project-level planning,
own project-level planning, execution, control and management. They are required to complete projects on time and within budget, and to report progress and co-ordinate their work through NAPCO.
NAPCO's task is to ensure compliance with ACP plans, programmes and budgets, and to act as a focal point for the management of project interfaces and resolution of problems. It is made up of staff from the government and the ACP project management consultant.
Protecting the Environment
Environmental impact assessment (EIA) studies have been undertaken for each ACP project as an integral part of project planning and design. These studies have generally shown that, with suitable mitigation measures in operation, the projects will be environmentally acceptable. Such measures include the installation of noise barriers; window insulation to mitigate noise exposure; plus general construction site housekeeping. Extensive environmental monitoring and audit programmes were conducted by the project offices and reported to the Environmental Protection Department (EPD) to ensure the acceptable performance of individual projects. In
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