XN000022-1992-05-07 — Page 3

2

I

THURSDAY, MAY 7, 1992

WORK

WEEKS,

MUST

START UNDER THE TERMS OF THE CONTRACT

IT IS SCHEDULED FOR COMPLETION AND

WITHIN FOUR WITHIN

COMMISSIONING AND FIVE YEARS.

"THE CENTRAL TENDER BOARD IS SATISFIED THAT THE ANGLO-JAPANESE CONSORTIUM, WHICH SUBMITTED THE SECOND LOWEST TENDER LAST DECEMBER, IS

THE PLACED OF THE FOUR CONTESTANTS TO UNDERTAKE THE BEST CONTRACT, SAID MR YEUNG.

"IT WILL BRING TO HONG KONG THE INTERNATIONAL

NEEDED EXPERTISE

AT THE MOST COST-EFFECTIVE PRICE GREATEST ASSURANCE OF PROJECT COMPLETION ON TIME.

TSING MA

CONSTRUCTION

AND WITH

THE

"THE ANGLO-JAPANESE CONSORTIUM HAS EMERGED FROM OUR ASSESSMENT PROCEDURE AS THE CLEAR WINNER OVER THE THIRD LOWEST TENDERER, THE HONG KONG INTERNATIONAL CONSORTIUM, WHOSE TENDER PRICE WAS $7,363 MILLION.

"THE HIGHEST TENDER CAME FROM THE ALL-JAPANESE CROSSING INTERNATIONAL AT $10,960 MILLION.'

||

LANTAU FIXED

MR

TO FAILURE YEUNG EXPLAINED THAT, IN ADDITION TO HYUNDAI'S

1 COMPLY WITH WORKING AND EMPLOYED CAPITAL REQUIREMENTS, IT WAS ALSO THE OF THE LEAST ACCEPTABLE OF ALL THE TENDERERS WHEN TIMELY COMPLETION CONTRACT WAS TAKEN INTO ACCOUNT.

"SINCE AUGUST 1991

1991, THE GOVERNMENT HAS BEEN IN CONTACT WITH HYUNDAI ABOUT THE COMPANY'S FINANCIAL POSITION. HYUNDAI WAS PRE- QUALIFIED

AND IN LATE-1990 ON THE BASIS OF ITS 1989 AUDITED ACCOUNTS

HALF-YEARLY ACCOUNTS ITS UNAUDITED

AS WELL AS TO JUNE 1990,

ON

TECHNICAL GROUNDS.

"HYUNDAI THEN SUBMITTED FULL 1990 AUDITED ACCOUNTS IN JUNE 1991 WHICH SHOWED A DEFICIENCY IN WORKING AND EMPLOYED CAPITAL.

"FOLLOWING NOTIFICATION IN WRITING TO HYUNDAI DURING AUGUST TO 1991, A NUMBER OF MEETINGS HAVE TAKEN PLACE WITH REPRESENTATION UP THE HIGHEST OFFICIAL LEVELS ON BOTH SIDES.

"IN MARCH AND IN APRIL THIS YEAR, HYUNDAI WERE AGAIN ADVISED IN REQUIRED THE WRITING THAT ANY AWARD OF A CONTRACT BY THE GOVERNMENT HAVE AVAILABLE SUFFICIENT CONTRACTORS CONCERNED TO

EMPLOYED AND WORKING CAPITAL TO COMPLY WITH GOVERNMENT RULES,

"THIS IS NECESSARY TO AVOID THE RISK OF A FAILURE TO COMPLETE THE CONTRACT DUE TO SHORTAGE OF FUNDING.

"CONTRACTORS NEED ADEQUATE WORKING CAPITAL ΤΟ MAINTAIN LIQUIDITY SO THAT THEY CAN FINANCE OUTGOINGS ON THE CONTRACT.

"ADEQUATE EMPLOYED CAPITAL IS NEEDED FOR THE PURCHASE OF FIXED ASSETS SUCH AS CONSTRUCTION PLANT AND OTHER CAPITAL EQUIPMENT.

/"MEANS TO