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046001 MDHIAN 5794
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FM BTC HONG KONG TO IMMEDIATE DTI
TELNO OTTER 277
OF 282206Z DECEMBER 90
INFO ROUTINE FCO, TOKYO, PEKING, ECGD
CORRECTED VERSION
FOR ADAMS, PEP
(315
TOP COPY Q DIST?
MYTELNO OTTER 272: HONG KONG AIRPORT PROJECT
1. DESPITE THE POLITICAL AND OTHER CONTROVERSIES WHICH CONTINUE TO BE THROWN UP BY THIS PROJECT, THE PROCESS OF AWARDING CONTRACTS CONTINUES TO GATHER MOMENTUM. THE FOLLOWING ARE THE MAIN RECENT DEVELOPMENTS KNOWN TO US.
ADVANCED WORK CONTRACT AT CHEL LAP KOK (MYTELNO OTTER 248 OF 1 NOVEMBER).
2. THIS CONTRACT IS ABOUT TO BE AWARDED. FIVE PRE-QUALIFIED COMPANIES SUBMITTED BIDS. ALTHOUGH NOTHING HAS BEEN ANNOUNCED I UNDERSTAND (FROM COMMERCIAL RATHER THAN GOVERNMENT SOURCES) THAT THE ONLY BRITISH TEAM TO PRE-QUALIFY, GAMMON-COSTAIN, FARED VERY BADLY. THEIR BID OF APPROXIMATELY 500M HKD WAS THE MOST EXPENSIVE. ONE OF THE JAPANESE CONTENDERS APPARENTLY WAS THE LOWEST AT 350M HKD. ALTHOUGH BY NO MEANS AN INSIGNIFICANT CONTRACT IN ITSELF THIS HAS ADDED SYMBOLIC IMPORTANCE AS THE FIRST CONTRACT INVOLVING WORK ON THE AIRPORT SITE. HENCE COMPETITION FROM MOST OF THE MAIN PLAYERS. IF THIS INFORMATION IS CONFIRMED IT IS LIKELY TO HAVE DONE HARM THE CREDIBILITY OF BRITISH COMPANIES.
THE RAIL LINK
3. THE CONSULTANTS (ACER-FREEMAN-FOX ETC) WHO ARE ADVISING ON THE VIABILITY OF THE RAIL LINK, SHOULD HAVE SUBMITTED THEIR REPORT BEFORE CHRISTMAS. AGAIN WE HAVE BEEN UNABLE TO LEARN ANYTHING FROM GOVERNMENT, BUT PRIVATE SECTOR SOURCES SAY THE REPORT ADVISES THAT THE RAIL LINK IS NEVER LIKELY TO BE VIABLE IN THE FORESEEABLE FUTURE, AND POINTS TO THE CONCLUSION THAT IT SHOULD BE DROPPED FROM THE PROJECT ALTOGETHER. IF THIS IS CORRECT, THEN THERE WILL BE SUBSTANTIAL REPERCUSSIONS FOR MANY OTHER PARTS OF THE PROJECT, NOT LEAST FOR THE MAIN BRIDGE. SINCE PRESENT PLANS ARE TO GO OUT TO TENDER IN THE COMING MONTHS FOR THE MAIN BRIDGE
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