TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 11

G. F. 323

0003230

CONFIDENTIAL #B

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The figure

page A3.1.8 of the British Group's June 1973 proposals. of HK$33.9 million quoted in. June 1973, when escalated by 10% p.a. over the construction period, would become HK3116 million and this was the "provisional cost" sum included in the Anglo-Italian Group's bid. view of the insignificant local cost content, the figure of HK4116 million applied to both Alternatives 1 and 2.

In

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Mr Wilkins said that it was not clear from the British Group's June 1973 proposals what ventilation and air-conditioning system was envisaged. Hr Scott agreed but said that, as the Consulting Engineers themselves were still in the course of developing their design of the ventilation system, the design eventually adopted might bear little relationship to the information available before June 1973. Thus, provisional sum was little more than a sum included for the sake of completeness. Dr Piccagli added that the important point at this stage was that the provisional sum had been assessed on the most realistic

basis possible.

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the

Mr Haddon-Cave asked what exchange rates the Anglo-Italian Group had adopted in arriving at their Hong Kong dollar figures. HK$1 had been used for the Dr Piccagli said a rate of Lire 115 Italian portion, and Mr Kindersley said the rate used for the sterling portion was £1

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HK$12.10.

In reply to a question from Mr Lau, Dr Piccagli said the overall offshore content of the Anglo-Italian bid was 50% for civil

The work was shared between engineering and 805 for E & M supplies.

the British and the Italian constituents on a 25 : 75 basis for civil engineering and a 60 : 40 basis for E & M,

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Mr Haddon-Cave asked how the revised ratios between offshore and local costs would affect the financing arrangements previously

Mr Kindersley said offered by the British Group and by Intermetro. that, to the extent that the British participation had been reduced, the amount of ECGD credits would be reduced accordingly. However, DCGD credits would still cover 100% of the cost of UK goods and

services supplied. Similarly, Dr Piccagli confirmed that the export

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