XN000022-1992-10-16 — Page 16

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FRIDAY, OCTOBER 16, 1992

THE

THE

THE KAP SHUI MUN BRIDGE AND MA WAN VIADUCT FORM A KEY PART OF LANTAU FIXED CROSSING, LINKING THE TSING MA SUSPENSION BRIDGE TO NORTH LANTAU EXPRESSWAY WITH COMBINED ROAD AND RAIL STRUCTURES. THEY WILL TAKE ABOUT FOUR-AND-A-HALF YEARS TO COMPLETE.

"THE KUMAGAI-MAEDA-YOKOGAWA-HITACHI JOINT VENTURE HAS SUBMITTED THE LOWEST BID RECEIVED FROM THREE TENDERERS FOR THIS IMPORTANT PART OF THE AIRPORT CORE PROGRAMME, AND IT IS THE CLEAR WINNER, SECRETARY FOR THE TREASURY AND CHAIRMAN OF THE CTB, MR KY YEUNG, SAID TODAY.

**ITS TENDER PRICE OF $1.64 BILLION FOR DESIGNING AND CONSTRUCTING THE BRIDGE AND VIADUCT COMES WELL WITHIN THE GOVERNMENT'S ESTIMATE FOR THIS CONTRACT OF $1.81 BILLION (MARCH 1991 PRICES), WHICH IS PART OF THE PROJECT ESTIMATE APPROVED BY FINANCE COMMITTEE IN JULY 1991.

"REMEMBER ALSO THAT THIS IS A FIXED-PRICE LUMP SUM CONTRACT WITH NO FUTURE ADJUSTMENT FOR INFLATION. WHEN YOU CONSIDER THAT OUR ORIGINAL ESTIMATE OF $1.81 BILLION WAS IN MARCH 1991 PRICES, THEN THE SAVINGS WE HAVE ACHIEVED ON THIS CONTRACT ARE ALL THE MORE REMARKABLE, MR YEUNG SAID.

MR YEUNG SAID: "THIS FOLLOWS THE TREND WHICH IS ALREADY APPARENT IN OTHER GOVERNMENT CONTRACTS ON THE AIRPORT CORE PROGRAMME. IT WILL BRING THE TOTAL NUMBER OF GOVERNMENT CONTRACTS ON THE AWARDED BELOW ESTIMATE TO 17, WITH A VALUE OF NEARLY $19 BILLION,

ACP

"THAT IS A SIGNIFICANT ACHIEVEMENT IN TERMS OF PROGRAMME PLANNING AND IMPLEMENTATION, AND IT DEMONSTRATES THAT COMPETITIVE BIDDING ON A FIXED PRICE LUMP SUM BASIS IS VERY EFFECTIVE IN KEEPING THE COSTS OF THE ACP DOWN.**

AND

A GOVERNMENT SPOKESMAN SAID IT WAS DECIDED TO USE A DESIGN CONSTRUCT CONTRACT BECAUSE ALTERNATIVE DESIGNS AND CONSTRUCTION METHODS WERE AVAILABLE, AND BECAUSE THERE WAS SUFFICIENT TIME FOR TENDERERS TO PREPARE THEIR OWN DESIGNS.

"ON A DESIGN AND CONSTRUCT CONTRACT SUCH AS THIS, THE TENDERERS COMPETE BY PRODUCING DESIGNS THAT COMBINE THEIR SPECIALIST SKILLS AND THEIR SOURCES OF MATERIALS WITH THE NEED FOR THE LOWEST POSSIBLE VIABLE PRICE. THAT IS WHAT HAS HAPPENED HERE, SAID THE SPOKESMAN.

T

"ALL THREE TENDERERS PRODUCED DIFFERENT SOLUTIONS WITH VERY COMPETITIVE DESIGNS AND PRICES. THE DESIGNS VARIED IN THEIR USE OF CONCRETE AND STEEL FOR THE BRIDGE, AND IN THEIR DESIGN OF THE BRIDGE TOWERS AND STEEL STAYS.

"THEY ALSO VARIED, FOR EXAMPLE, IN THEIR CHOICE OF SPANS FOR THE KAP SHUI MUN BRIDGE, AND IN METHODS OF CONSTRUCTING BOX SECTIONS OF THE MA WAN VIADUCT WHICH WILL CARRY THE ENCLOSED RAILWAY AND LOWER ROADWAYS.

THE

MEETS

OUR

"THE KUMAGAI-MAEDA-YOKOGAWA-HITACHI JOINT VENTURE PRODUCED LOWEST BID WITH AN EXTREMELY ECONOMICAL DESIGN THAT FULLY REQUIREMENTS," SAID THE SPOKESMAN.

/THE MA

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