TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 312

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CONFIDENTIAL

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CONFIDENTIAL

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احة

EASTERN HARBOUR CROSSING

AWARD OF FRANCHISE

EXECUTIVE COUNCIL ON 3 DECEMBER 1985 CONSIDERED THE RECOMMENDATIONS OF THE ADMINISTRATION AND SUBJECT TO CERTAIN CONTRACTUAL PROCEDURES ORDERED THAT THE AWARD BE MADE TO THE NEW HONG KONG TUNNEL CONSORT- IUM. THESE WERE SATISFACTORILY COMPLETED ON 5 DECEMBER 1985 AND A LETTER OF ACCEPTANCE WAS ISSUED WHICH IS BINDING SUBJECT ONLY TO THE ENACTMENT OF AN ORDINANCE TO ALLOW THE GRANTING OF STATUTORY

FRANCHISES.

2. FOLLOWING A GOVERNMENT INVITATION IN OCTOBER 1984, 9 CONSORTIA SUBMITTED ON 1 APRIL 1985 PROPOSALS TO FINANCE, CONSTRUCT AND OPERATE A ROAD, OR ROAD/RAIL, CROSSING CONNECTING QUARRY BAY (ON HONG KONG ISLAND) AND CHA KWO LING (KOWLOON). ON 26 JULY 1985 A SHORTLIST OF 3 CONSORTIA WAS SELECTED TO SUBMIT BY 1 OCTOBER 1985 CONFIRMED PROPOSALS FOR A ROAD AND RAIL CROSSING.

3. THE THREE SHORTLISTED CONSORTIA WERE :

(A) ANGLO-JAPANESE CONSORTIUM (GAMMON (HK) LIMITED AND MISHIMATSU

CONSTRUCTION CO. LTD.):

(B) CROSS-HARBOUR TUNNEL CO. LTD. (THE OPERATOR OF THE EXISTING CROSS-HARBOUR TUNNEL);

CHINA

(C) NEW HONG KONG TUNNEL CONSORTIUM (KUMAGAF-GUMI CO. LTD., INTERNATIONAL TRUST AND INVESTMENT CORPORATION, PAUL Y. CONSTRUCTION CO. LTD., LILLEY CONSTRUCTION LIMITED).

4. A SECOND ROUND OF TECHNICAL AND FINANCIAL ASSESSMENTS TOOK PLACE FOLLOWED BY FORMAL NEGOTIATIONS, FOLLOWING WHICH ALL CONSORT HA WERE INVITED TO SUBMIT FINAL CONFIRMED OFFERS BY 3 NOVEMBER 1985. IT WAS MADE CLEAR TO THEM THAT NO SUBSEQUENT OFFERS WOULD BE CONSIDERED.

5. ON THE BASIS OF THESE FINAL CONFIRMED OFFERS, THE NEW HONG KONG TUNNEL CONSORTIUM WAS ASSESSED BEST ON ENGINEERING AND FINANCIAL GROUND, AND ON THE STABILITY AND LEVEL OF THE PROJECTED TOLL CHARGES.

6. IN TAKING ITS DECISION THE EXECUTIVE COUNCIL WAS AWARE OF THE LATE REVISED OFFERS PECEIVED FROM BOTH THE ANGLO-JAPANESE CONSORTIUM AND THE CROSS-HARBOUR TUNNEL CO. LTD. THESE WERE MOT FORMALLY CONSIDERED AS THEY WERE TIME BARRED, BUT THEY WERE ANALYSED WHICH

INDICATED THAT, HAD THEY BEEN ACCEPTED, BOTH FINANCIAL OFFERS WOULD HAVE REMAINED LESS ATTRACTIVE THAN THE NEW HONG KONG TUNNEL

CONSORTIUM OFFER.

CONFIDENTIAL