TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 82

INFORMATION SERVICES DEPT

1990-10-05 17:02

To All Overseas Offices

From

:

5 October 1990 Pages:

CIS

852 521 7725

P.01/03

DIS (Halima Guterres, OPRS)

Log No. : OPRS/ L / 79|

!

PRIDAY, OCTOBER 5, 1990

THE HONG KONG GOVERNMENT HAS DECIDED TO INVITE BIDS FOR THE CONSTRUCTION OF THE LANTAU FIXED CROUSING, MARKING AN IMPORTANT MILESTONE ON THE ROAD TO CHEK LAP KOK.

THE CHIEF SECRETARY, STR DAVID FORD, MADE THE ANNOUNCEMENT THIS AFTERNOON (FRIDAY).

THE DECISION IS A PTRM DEMONSTRATION OF THE GOVERNMENT'S COMMITMENT TO THE INFRASTRUCTURAL DEVELOPMENT OF HONG KONG.

"IN COMING TO A DECISION ON HOW THE PROJECT SHOULD BE HANDLED WE HAVE REVIEWED ALL THE OPTIONS OPEN TO US AND HAVE DECIDED ON A STRAIGHTFORWARD CONSTRUCTION CONTRACT APPROACH," SIR DAVTD SAID.

"THERE ARE GOOD REASONS FOR THIS APPROACH RATHER THAN ADOPTING

A BUTLO-OPERATE-TRANSFER OPTION.

"FIRST OF ALL THERE IS CERTAINTY. IT TS CLEAR THAT THE FIXED CROSSING IS THE KEY TO THE SUCCESS OF THE WHOLE PROJECT.

"THE CONSTRUCTION CONTRACT APPROACH PROVIDES CERTAINTY IN TERMS OF PLANNING, COMPLETION AND OPERATION, AND FURTHERMORE ALLOWS US TO START CONSTRUCTION SIX TO NINE MONTHS AHEAD OF A BUILD-OPERATE- TRANSFER OPTION."

INTERNATIONAL CONSORTIA HAD

SIR DAVID SAID

SAID THAT A NUMBER OF EXPRESSED INTEREST IN THE BOT OPTION. DESPITE THIS, THE GOVERNMENT HAD DECIDED TO OPT FOR CONSTRUCTION CONTRACT APPROACH BECAUSE IT REPRESENTED BETTER VALUE FOR MONEY AND,

FOR MONEY AND, BY AVOIDING THE PROTRACTED NEGOTIATIONS LIKELY OVER A BOT TENDER, WOULD ENABLE AN EARLIER START.

"HAVING STUDIED ALL ASPECTS VERY CAREFULLY OVER A CONSIDERABLE PERIOD, WE HAVE CONCLUDED THAT THERE IS A GREATER ADVANTAGE IN FUNDING THE PROJECT OURSELVES. BUT CLEARLY WE WOULD ALSO WISH TO CONSIDER FINANÇTAL PACKAGES PUT FORWARD IN RESPONSE TO THE CONSTRUCTION TENDER EXERCISE.

"WE HAVE NO DOUBT THAT THE TENDER WILL ATTRACT A LARGER NUMBER OF WELL-QUALIFIED CONTRACTORS,

CONTRACTORS, AND THAT THE ADDED COMPETITION WILL RESULT IN A VERY KEEN PRICE FOR THE BRIDGE."

SIR DAVID SAID THE CONSTRUCTION CONTRACT APPROACH ALSO OPENS UP ANOTHER ATTRACTIVE OPTION FOR FINANCING THE PROJECT AT A LATER STAGE, THAT IS TO CALL FOR COMPETITIVE RIDS FOR THE FRANCHISE TO OPERATE THE BRIDGE AFTER IT IS COMPLETED.

J

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