TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 104

CONFIDENTIAL

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116460 MDLIAN 4309

CONFIDENTIAL

FM BTC HONG KONG TO PRIORITY DTI

TELNO OTTER 83

OF 181037Z APRIL 91

AND TO PRIORITY FCO

INFO PRIORITY PEKING, TOKYO

Pa

FIKE 182 / 3

RECEIVED IN AC

23 APR 1991

т

FOR ADAMS, HEAD OF PEP

HONG KONG AIRPORT PROJECT

1. THE HONG KONG GOVERNMENT HAVE BEEN PLANNING TO ANNOUNCE THIS WEEK THE AWARD OF TOW FURTHER MAJOR CONTRACTS WHICH FORM PART OF THE OVERALL PADS PROJECT. THE FIRST IS FOR THE SOUTHERN PART OF THE WEST KOWLOON RECLAMATION, AT A VALUE OF HKD1.15 BILLION AND IS BEING AWARDED TO THE LOCAL COMPANY SHUI ON IN PARTNERSHIP WITH THE DUTCH DREDGING FIRM BOSKALIS. THE SECOND IS FOR THE NORTHERN PART OF THE WEST KOWLOON RECLAMATION, AT A VALUE OF HKD1.6 BILLION AND IS TO BE AWARDED TO KUMAGAI OF JAPAN IN PARTNERSHIP WITH THE DUTCH DREDGING FIRM HAM. THE RECLAMATION COVERED BY THESE CONTRACTS WOULD BE 330 HECTARES.

2. ANNOUNCEMENT OF THE AWARDS HAVE HOWEVER BEEN PUT ON HOLD ON ACCOUNT OF THE LATEST POLITICAL DEVELOPMENTS SURROUNDING THE AIRPORT. THIS IS NOT WITHOUT SOME EMBARRASSMENT TO THOSE ON THE GOVERNMENT SIDE POISED TO AWARD THE CONTRACTS SINCE THE SUCCESSFUL COMPANIES HAVE ALREADY BEEN INFORMED.

3. THIS WOULD GIVE KUMAGAI THEIR SECOND MAJOR CONTRACT (THE ADVANCED WORKS CONTRACT AT CHEK LAP KOK WAS THE FIRST). THERE HAVE BEEN NO COMPARABLE BRITISH SUCCESSES.

HEAP

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