Nat comet-
Japan
can hit China
tube May
12/12173
jackpot
By Rodney Tasker
JAPAN is hoping that its leading bid to build Hongkong's underground railway system will put it in a commanding position to win tube contracts throughout the world.
There are some 40 underground railway projects in the feasibility stage in other parts of the world, and these countries will be watching Hongkong closely to see if the Japanese can successfully keep to within their low tender figure. Government announced last night that the Japanese
consortium
one of three
bidding for the tube contract had been chosen for final negotiations which could eventually lead to the signing of the contract for the prestigious tube project.
The consortium, including five of the biggest companies in Japan represented in Hong- kong by Jardines, offered terms well within the Government ceiling of $5,000 million to build the four stages of the tube. Profits
The group, headed by Mitsubishi, has the backing of the Japanese Government, and is believed to be prepared to cut deep into its profits to keep within this figure.
Japan's national reputation is at stake, and the consortium sees the Hongkong project as a shop window to attract those intending to build tube systems elsewhere.
It is known that tenders by. the other two consortia, the Anglo Italian group represented here by Hutchisons and the Anglo-French-German consortium represented by Hongkong Metro Con- structors. were substantially more than the $5,000 million ceiling.
The Japanese made their bid in October. and the Govern- ment's tube steering group immediately contacted the other two groups to ask for their bids.
Ability
Final negotiations for the contract were originally intended to start next March or April, but last night's early announcement means the whole project has been advanced by four months.
The coming negotiations between Government and the Japanese consortium will be tough, and Mitsubishi will have to convince Hongkong of their ability and willingness to build the tube within their terms and the fixed schedules.
A Government spokesman today stressed that last night's announcement does not mean Japan has the project "in the ibag.".
w!367
No comments yet.
Private notes are available after approval.