TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 196

For discussion

on 11th December 1973

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ANNEX A TO XCS(75) |

XCS(73)12

Copy No

· MEMORANDUM FOR EXECUTIVE COUNCIL

ARRANGEMENTS FOR THE CONSTRUCTION AND EQUIPMENT

Pluoda (OF THE MASS TRANSIT RAILWAY

1.

Jav.

A

Introduction

On 31st July 1973 after considering memorandum XCS(73)8 (a copy of which is at Annex A), Honourable Members advised and the Governor ordered, inter alia:

2

(a)

(b)

that in principle the single-contract approach (i.e. awarding the contract for construction and equipment to one consortium) be adopted for the first four stages of the Mass Transit Railway:

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that further exchanges be entered into with the four Consortia listed in paragraph 8 of the memorandum, Hos with a view to bringing at least one of them up to the

requirements set out at Annex F (to memorandum XCS(73)8); 1900.es us aitona-

(c)

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that the Steering Group be authorised to select the consortia with which to enter into actual negotiations, subject to the proviso that the final selection of a particular consortium would not be made without further reference to Executive Council.

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In accordance with the above decisions, the Mass Transit Steering Group held a further round of meetings with the four consortia in London and Tokyo. At these meetings, the Steering Group:

(a)

conveyed to the consortia the Government's decisions;

(b)

(c)

explained to them the Government requirements for a single-contract arrangement (i, e. Annex F to memorandum XCS(73)8), .with particular emphasis on the ceiling price concept and the $5,000 million limit on the ceiling price;

sought from each consortium an indication as to whether they would be prepared to negotiate a contract on the basis of the Government's requirements.

In the event, all four consortia confirmed their continued interest in bidding for the contract for the project.

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