TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 125

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575

CYPHER/CAT A

FM BTC HONG KONG 070937Z

CONFIDENTIAL

HRK ON DISTRIBUTION

RECEIVED SK

OR

INDEK

No...

BRO. 51

PRIORE DOI.

REGISTE

Action Taken

TO PRIORITY D.O.I TELNO. INDUS 119 OF 7 SEPTEMBER 78.

FOR HAVELOCK, EPT.

YOUR INDUS 191.

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TRED) (2)

TIKED

1. FOLLOWING IS TEXT OF DEAN BARRETT'S MESSAGE WHICH I RELAYED

BY TELEPHONE LAST NIGHT-

REGINS: WE HAVE STARTED PREPARING QUESTIONS ON THE EHV OFFER.

HOWEVER ONLY LIMITED PROGRESS CAN BE MADE WITHOUT A BREAKDOWN OF THE PRICES. PLEASE ASK D.0.1 TO SUPPLY A COMPREHENSIVE SCHEDULE OF UNIT PRICES IDENTIFYING WHERE THE PRICES ARE FIRM, ARE SUBJECTED TO CPA AND THE RELEVANT CPA FORMULA, ARE MEASURED WORK ELEMENTS ARE PROVISIONAL SUMS ETC. ETC. THIS INFORMATION URGENTLY REQUIRED, PLEASE ADVISE WHEN WE MAY RECEIVED IT. PLEASE SEND COPY ALSO TO ELECTROWATT. ENDS.

2. WHEN I SPOKE TO BARRETT THIS MORNING HE RECOGNISED THAT THE

NATURE OF THE PACKAGES WOULD PRECLUDE A COMPLETE PRICE BREAKDOWN

BUT HOPED THAT WE COULD PROVIDE UNIT PRICES IN RESPECT OF THE

POWER LINE AS IT WOULD OTHERWISE BE IMPOSSIBLE FOR CLP TO EVALUATE

THE OFFER AGAINST THE BIDS RECEIVED FROM COMPETITORS. BARRETT SUGGESTED THAT OUR FIGURE WAS FIFTY PERCENT HIGHER THAN CLP'S INTERNAL ESTIMATES MADE ON THE BASIS OF OTHER BIDS. I REGARD

THIS AS AN OFF-THE-CUFF REMARK MADE WITHOUT ANY REAL KNOWLEDGE OF THE CONTENTS OF THE RESPECTIVE OFFERS AND THUS INSUFFICIENT INFORMATION TO COMPARE LIKE WITH LIKE.

3. I SAW SWAN AND BREALEY THIS MORNING, THEIR INABILITY TO PROVIDE A BREAKDOWN OF PRICES LED TO BARRETT'S TELEX. 1

THANKED THEM FOR ENSURING THIS BASIC DIFFICULTY HAD BEEN RELAYED

THROUGH ME. SWAN SUGGESTED THAT CLP HAD FAILED TO APPRECIATE THAT THE CONSULTANCY SERVICE OFFERED IN OUR EHV PACKAGE WAS QUITE DIFFERENT FROM THE PROPPING UP EXERCISE BY THE SUPPLY OF SECONDED STAFF WHICH HAD BEEN THE BASIS OF CEGB INVOLVEMENT IN THE POWER STATION CONTRACT AND THE PREPARATORY WORK DONE DURING THE SUMMER ON THE TRANSMISSION SYSTEM - SHOOKS AND REED MINI