XN000022-1992-05-07 — Page 4

THURSDAY, MAY 7, 1992

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BY

"MEANS TO MEET OUR REQUIREMENTS WERE POINTED OUT TO HYUNDAI WAY OF AN INTER-GROUP GUARANTEE AND AN IRREVOCABLE LETTER OF CREDIT TO COVER THAT PART OF THE EMPLOYED AND WORKING CAPITAL DEFICIENCY THAT HYUNDAI WERE NOT ABLE TO MEET BY OTHER MEANS.

"HYUNDAI HAVE NOT BEEN ABLE TO OFFER US SATISFACTORY ASSURANCES THAT THEIR POSITION WOULD BE CORRECTED," HE SAID.

THE TENDER EVALUATION PROCEDURE CARRIED OUT BY THE HONG KONG GOVERNMENT HAS ENCOMPASSED:

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A COMPARISON AND EVALUATION OF TENDER PRICES, INCLUDING THEIR NET PRESENT VALUE WHICH ENABLES PRICES TO BE ASSESSED ON A UNIFORM CASH BASIS;

ASSESSMENTS OF TECHNICAL AND MANAGEMENT COMPETENCE;

EVALUATION OF THE PROGRAMME FOR CONSTRUCTION; AND

COMPLIANCE WITH GOVERNMENT CONTRACT CONDITIONS.

THE GOVERNMENT WAS ADVISED ON TECHNICAL MATTERS BY A TEAM OF INTERNATIONAL EXPERTS IN SUSPENSION BRIDGE CONSTRUCTION.

EXCEPT FOR ITS TENDER PRICE BEING SECOND LOWEST, THE ANGLO- JAPANESE CONSORTIUM CAME FIRST AGAINST ALL THE ASSESSMENT CRITERIA.

THE CONSORTIUM IS VERY EXPERIENCED IN MAJOR BRIDGE CONSTRUCTION, INCLUDING LARGE SUSPENSION BRIDGES, AND IN ACHIEVING REQUISITE QUALITY STANDARDS. THE RISK OF PROJECT DELAY IS ASSESSED AS THE LOWEST.

THE CONSORTIUM HAS ALSO COMPLIED WITH THE GOVERNMENT'S STANDARD REQUIREMENTS ON EMPLOYED AND WORKING CAPITAL.

THE ANGLO-JAPANESE CONSORTIUM COMPRISES DORMAN LONG OVERSEAS LTD, COSTAIN CIVIL ENGINEERING LTD, AND MITSUI & CO. LTD, WITH GAMMON (HK) LTD PROVIDING VERY STRONG LOCAL EXPERIENCE AS A PRINCIPAL SUB- CONTRACTOR.

ALL OF THESE COMPANIES HAVE PREVIOUSLY UNDERTAKEN MAJOR CONSTRUCTION WORKS IN HONG KONG AND HAVE STRONG CONNECTIONS WITH LOCAL SUPPLIERS AND HONG KONG'S CONSTRUCTION WORK-FORCE.

OTHER IMPORTANT SUBCONTRACTORS NAMED BY THE CONSORTIUM INCLUDE COMPANIES WITH SPECIALIST BACKGROUNDS FROM CHINA, KOREA AND FRANCE.

THE GOVERNMENT DECIDED IN MARCH NOT TO ACCEPT FINANCIAL OFFERS WHICH THE TENDERERS SUBMITTED WITH THEIR PRICES. ALTHOUGH GOOD TERMS WERE OFFERED, THEY WERE NOT BETTER THAN THOSE AVAILABLE IN THE MARKET.

THE GOVERNMENT BELIEVES THAT MORE FAVOURABLE FINANCING WILL BE AVAILABLE WHEN BIDS TO TAKE ON THE FRANCHISE FOR THE FIXED CROSSING ARE INVITED AFTER COMPLETION.

TERMS LANTAU

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