TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 254

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COMMENT I

RESTRICTED

FM BTC HONG KONG

TO PRIORITY DTI

TELNO OTTER 190

OF 3012012 AUGUST 20

INFO PRIORITY FCO, PEKINE, TOKYO

n!

HK C

·ECEIVER ING

18212

0 20CT 1990

JESKA,

*. JEA

FOR ADAMS, HEAD OF PEP

HONG KONG AIRPORT PROJECT) MEN CONTRACTS

3. THE AWARD OF SEVERAL NEW CONTRACTS HAVE BEEN ANNOUNCED IN THE LAST FEW DAYS.

$35

3. A HKD 235 MILLION (ADS STG 15.6 MILLION APPROX.) CONTRACT FOR RECLAMATION AND THE REPLACEMENT OF YAU MA TEI TYPHOON SHELTER HAS BEEN AWARDED TO SAMMON CONSTRUCTION LTD. BAMMON IS 50 PERCENT OWNED BY JARDINES AND SO PERCENT BY TRAFALGAR HOUSE. IT WILL INVOLVE THE CONSTRUCTION OF 1025 METRES OF BREAKWATER, METRES OF SEAWALL 4.S HECTARES OF RECLAIMED LAND AND WILL REQUIRE THE DREDGING OF SOME 3.4 MILLION CUBIC METRES OF MARINE MUD. A SECOND PHASE WILL REQUIRE A FURTHER 1775 HECTARES OF SEAWALL AND 17 HECTARES OF RECLAMATION.

3. THE CONTRACT FOR THE OVERALL FINANCIAL ADVISOR TO THE HOMB KOMB GOVERNMENT FOR THE WHOLE AIRPORT, PORT AND INFRASTRUCTURE PADS PROJECT HAS BEEN AWARDED TO MORGAN STANLEY (USA), THIS WAS STRONGLY COMPETED FOR BY HAMBRO, BY CHARTERED HEST AND OTHER BRITISH BANSS. THE GOVERNOR TOLD MR MAUDE IN JULY IN LONDON THAT THE DECISION HAD ALREADY BEEN MADE IN FAVOUR OF MORGAN STANLEY (WHO HAVE ONLY LIMITED PREVIOUS EXPERIENCE IN HONG KONG AND ONLY

A SMALL PRESENCE HERE. HAVING OPENED THEIR HONG KONG OFFICE IN 1988). IT IS SURPRISING THEREFORE THAT THE ANNOUNCEMENT HAS BEEN SO LONG DELAYED.

THE HKS HAVE ALSO ANNOUNCED THE APPOINTMENT OF WARDLEY CAPITAL (A SUBSIDIARY OF THE HONG KONG AND SHANGHAI BANK) ITS PROJECT FINANCIAL ADVISER ON THE AIRPORT PART OF THE PROJECT.

5. LOOKING AHEAD, THE HKB HAS CONFIRMED THAT TENDERS WILL BE INVITED IN EARLY NOVEMBER FOR THE WORKS CONTRACT FOR THE NEW AIRPORT. THE CONTRACT PERIOD WILL BE 12 MONTHS STARTING JANUARY 1991 AND THE DEADLINE FOR COMPLETED PREQUALIFYING SUBMISSIONS NILL BE SEPTEMBER 21.

6. SEPARATELY FROM ANY OF THESE ANNOUNCEMENTS, THE DIRECTOR OF CIVIL AVIATION HAS ANNOUNCED THAT TO MEET THE PROJECTED DEADLINE A VERY EARLY START WILL HAVE TO BE MADE ON (I) EXCAVATION OF THE NORTHERN HEADLANDS OF CHEK LAP KOK TO FORM 14 HECTARES OF NEW LAND, <II} AS FURTHER 15 HECTARES OF RECLAMATION IN THE BAY AREA BETWEEN THE HEADLANDS, (III) THE CONSTRUCTION OF A TEMPORARY SEAWALL, (IV) THE CONSTRUCTION OF A 200 METRE HEAVY LOAD QUAY FOR ASSOCIATED DREDGING AND MARINE HORKE.

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