TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 128

CONFIDENTIAL

FKB 182/3

CEIVED IN YE

-13

18 MAR 1991

DESK OFFICER

CONFIDENTIAL

FM BTC HONG KONG

TO IMMEDIATE FCO

TELNO 91

OF 151115Z MARCH 91

AND TO IMMEDIATE DTI

•NDEX

HA

Action:

JAN

INFO ROUTINE PEKING, TOKYO, ECGD

44

167414

MDHIAN 8211

TOP COPY Q DIST?

FOR ADAMS, HEAD OF PEP, DTI AND FOR MILES, AUS, FCO.

HONG KONG AIRPORT PROJECT.

SUMMARY

1. THE HONG KONG GOVERNMENT HAVE ANNOUNCED THE BEGINNING OF THE PRE-QUALIFICATION PROCESS FOR THE AIRPORT PLATFORM. THIS AND THE CONTRACT FOR THE BRIDGES, ALSO AT THE PRE-QUALIFICATION STAGE, ARE TOGETHER WORTH IN THE ORDER OF POUNDS 1.3 BILLION. IT IS TIMELY TO REVIEW THE PROSPECTS FOR BRITISH FIRMS. THEY ARE NOT AS STRONGLY PLACED AS WE MIGHT EXPECT OR HOPE. OUR FRONT RUNNERS, TRAFALGAR HOUSE AND COSTAIN, SEEM TO HAVE LOST HEART AND PERHAPS INTEREST. WHILE THERE IS STILL TIME WE AND THEY NEED TO TAKE STEPS TO BOOST THE PROSPECTS OF THEM AND OTHER BRITISH COMPANIES.

DETAIL

2. THE HONG KONG GOVERNMENT TODAY 15 MARCH HAVE CALLED FOR (GAZETTE AND NEWSPAPER ADVERTISEMENTS) PRE-QUALIFICATION FOR THE AIRPORT SITE PREPARATION CONTRACT, IE FOR THE AIRPORT PLATFORM. IT REQUIRES CREATING A SITE OF ABOUT 1,200 HECTARES, THE DREDGING AND DISPOSAL OF 70 MILLION CUBIC METRES OF MARINE DEPOSITS, AND THE EXCAVATION OF 85 MILLION BANK CUBIC METRES OF ROCK AND FILL. PRE-QUALIFICATION DOCUMENTS, AVAILABLE IMMEDIATELY FROM GRINER- MAUNSELL, ARE TO BE SUBMITTED BY 3 MAY.

3. THE GOVERNMENT HAS NOT YET ANNOUNCED WHICH OF THE 12 COMPETING GROUPS AND COMPANIES WHO SOUGHT TO PRE-QUALIFY FOR THE BUILDING OF THE BRIDGES (PRE-QUALIFICATION CLOSING DATE WAS 18 JANUARY)

HAVE BEEN SUCCESSFUL. AN ANNOUNCEMENT SEEMS LIKELY IN THE NEXT FEW WEEKS.

4. THESE TWO CONTRACTS REPRESENT THE LARGEST ITEMS IN THE WHOLE PADS COMPLEX OF PROJECTS. WE NEED TO REVIEW BRITAIN'S PROSPECTS FOR WINNING EITHER OR BOTH.

PAGE 1 CONFIDENTIAL