CO129-533-4 Hong Kong Water Supply Scheme 28-1-1931 - 20-1-1932 — Page 85

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plant required.

For a work of this magnitude a much greater

financial backing is required than for the contracts at

present approaching completion.

On the whole we would recommend either that the

work be carried out without the services of a major con-

tractor, in which case some of the plant purchased may have

to be totally written off as there would probably not be

work for which it would be required in the Colony and the

prospects of sale would therefore be small, but, on the

other hand, contractors' profit would be largely saved.

Speculation on the future cost of work (in view of the unstable dollar exchange) would be eliminated, and there is greater freedom to make amendments in details of con-

struction as the work proceeds.

Or alternatively, if it is still desired to continue the practice of placing the work out to tender, then Government should specify the plant which it will itself purchase and which the contractor shall take over, operate and maintain for the period of construction and of which the contractor shall become the owner after repaying the purchase price by appropriate deductions made from monthly certificates.

On the basis of unit costs at which work is being executed at present, we estimate the cost of completing the main and subsidiary dams and works ancillary thereto, includ- ing contingencies but not engineering or supervision, at

$8,000,000.