XN000022-1990-10-31 — Page 38

36

WEDNESDAY, OCTOBER 31, 1990

GOVERNMENT FUNDING FOR LAUTAU FIXED CROSSING BEST FOR HONG KONG

* *

TAXPAYERS,

THE GOVERNMENT'S DECISION TO PUBLICLY FUND THE LANTAU FIXED IN CROSSING WAS BASED ON THE CERTAINTY OF PROJECT COMPLETION TIME AND

OVERALL DEAL ORDER TO OBTAIN A BETTER

KONG FOR HONG

LAM THE HON. ALBERT ACTING SECRETARY FOR TRANSPORT, THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

CHI-CHỊU, TOLD

THE MOTION OF SPEAKING AT THE RESUMED DEBATE ON

THANKS, WOULD MR LAM SAID THE ADOPTION OF THE "DESIGN AND CONSTRUCT" APPROACH

TENDERERS WHICH THE NEED FOR PROTRACTED NEGOTIATIONS WITH ELIMINATE WOULD OTHERWISE BE NECESSARY IF THE PRIVATE SECTOR WERE TO FINANCE THE PROJECT UNDER THE "BUILD-OPERATE-AND-TRANSFER" ARRANGEMENTS.

THAT LANTAU

THE OTHER ADVANTAGE IN THE GOVERNMENT'S DECISION WAS BY TAKING OUT THE RISK FACTOR, THE COST FOR CONSTRUCTING THE

THAT WOULD BE GREATLY REDUCED GIVEN

THE FIXED CROSSING

COMMERCIAL WORLD OPERATES ON THE PRINCIPLE OF HIGHER THE RISK, HIGHER THE REWARD, MR LAM SAID.

"THE

FIXED

THE TO FINANCE THE CONSTRUCTION OF DECISION DOES CROSSING

FROM NOT PRECLUDE THE GOVERNMENT

SUPPORT AT OFFERS OF FINANCE OR PLEDGES OF FINANCIAL STAGE," MR LAM ADDED.

LANTAU CONSIDERING THE TENDER

CROSSING,

COMPETITIVE

MR

ALSO LAM

EMPHASISED THAT THE GOVERNMENT COULD

BIDS FROM FRANCHISE AGREEMENT.

UPON

THE

COMPLETION

FOR CONSIDER THE OPTION TO CALL

IT PRIVATE SECTOR TO

UNDER A OPERATE

OF

THE

HE TO

A SAID

PREQUALIFICATION EXERCISE

BE WOULD

CALLED THE NECESSARY BACKING

HAVE SCREEN IN THOSE TENDERERS JUDGED TO SHORTLY EXPERIENCE, EXPERTISE, PROFESSIONAL COMPETENCE AND FINANCIAL TO UNDERTAKE A PROJECT OF THIS MAGNITUDE.

"WE

WILL FEEL

CROSSING PROJECT INTEND TO SPLIT UP THE LANTAU FIXED INTO A NUMBER OF SELF-CONTAINED CONTRACTS, SO THAT INTERESTED PARTIES, WHETHER THEY BE LOCALLY BASED OR INTERNATIONAL CONSORTIA, ABLE TO TENDER FOR THOSE CONTRACTS IN THE FIELD BEST SUITED TO EXPERTISE AND ABILITY," MR LAM SAID.

THEIR

"AT THE TENDER EVALUATION STAGE, COST CONSIDERATION, OR THE INTO TENDERED QUOTATION, WILL BE A VERY IMPORTANT FACTOR TO BE TAKEN ACCOUNT, HE SAID.

FT

EARLIER, MR LAM REFUTED SUGGESTIONS THAT THE DECISION GO AHEAD WITH THE CONSTRUCTION OF THE CROSSING WAS MADE SUDDENLY.

TO

CALLED

FOR

THIS

"THE

WAS TIMING

IN FACT ENVISAGED WHEN WE EXPRESSION OF INTEREST IN THE LANTAU FIXED CROSSING IN FEBRUARY YEAR.

/"OVER 1,000