XN000022-1995-01-11 — Page 38

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Community Electronic Trading Service

Following is a question by the Hon Peter Wong and a written reply by the Secretary for the Treasury, Mr Donald Tsang, in the Legislative Council today (Wednesday):

Question:

In regard to the Community Electronic Trading Service, will the Government inform this Council of the reasons why the Government contractor had withdrawn from the supply of computer hardware and services to Tradelink in which the Government has a 30% interest and why another contractor was then picked to supply the hardware without a re-tendering exercise?

Reply:

Tradelink is a private company in which Government currently holds a 48% interest. Tradelink's original partner for the Community Electronic Trading Service (CETS) was selected in 1993 on the basis that it would best meet Tradelink's requirements following evaluation of a number of proposals from vendors. During negotiation of the detailed contractual arrangements in the course of 1994, it became clear that a number of important differences could not be resolved between Tradelink and its original partner over the terms and conditions for the system integration contract. Both sides therefore agreed to end the negotiations, allowing Tradelink to pursue an alternative solution as quickly as possible. A number of the other original proponents were asked to make further proposals for this purpose and Tradelink selected the one that best met Tradelink's requirements. To launch a tendering exercise ab initio would have been inconsistent with the original selection procedures, would have entailed serious delays to the CETS project and would not have been in the interests of the trading community.

End/Wednesday, January 11, 1995