TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 209

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XCS(73)8

Arrangements were also made for each consortium to be provided with a considerable amount of further information from the Consulting Engineers on the broad design parameters for the first four stages of the MTR. In the event, all consortia submitted their further proposals in writing on 4th June 1973, and, after preliminary study and evaluation of these proposals, the Steering Group held a second round of consultations with them in the second half of June. This second round of consultations was aimed largely at clarifying the proposals, so as to enable the Steering Group to come to a view on the viability of the single- contract approach, and to evaluate each consortium's proposals on a roughly comparable basis.

Summary of Consortia's Proposals

The four sets of proposals are summarised at:

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BE

(a)

Annex B for the Japanese Consortium;

(b)

Annex C for the Italian consortium (I. M. Intermetro S.p.A.);

(c)

Annex D for the Anglo-French-German consortium (Hong Kong Metro Constructors); and

(d)

Annex E for the British Group.

Each of these annexes also contains a cash-flow table drawn up on the basis of the proposals put forward by the consortium concerned, and of certain assumptions made by the Steering Group.

Assumptions Made in Drawing Up Cash Flow Tables

Largely because of the varied approaches adopted by the consortia, but partly also because of the necessarily incomplete nature of the technical and design data supplied to them by the Consulting Engineers, the price indications provided by the four consortia were not directly comparable. Some of these differences were identified and removed during the second round of consulta- tions. However, for the remainder, the Steering Group has had to make various assumptions about, and adjustments to, the consortia's price indications, with a view to bringing all of them onto a roughly comparable basis in terms of:

(a)

the Consulting Engineers' latest design parameters as outlined in paragraph 3(a) above;

(b)

(c)

various necessary ancillary costs (e.g. contract and credit insurance, project management and allowances for restrictions on the availability of working room);

and

cost escalation, contingencies and unforeseen circumstances (so as to arrive at a reasonable estimate of the maximum price ultimately payable under each set of proposals).

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