CONFIDENTIAL
125317
MDLIAN
95
4.
FOLLOWING APPEALS BY THE COMPETING GROUPS FOR AN EXTENSION OF THE BIDDING PERIOD (MY TELNO OTTER 220, PARA 4) THE CLOSING DATE FOR THIS BID HAS BEEN PUT BACK BY TWO WEEKS TO 21 FEBRUARY. THE PROVISIONAL AIRPORT AUTHORITY (PAA) SAY THEY WILL SHORTEN THE EVALUATION PERIOD BY THE SAME AMOUNT TO MAINTAIN THE ORIGINAL TIMETABLE. RICHARD ALLEN. CHIEF EXECUTIVE OF THE PAA, TOLD ME AT A MEETING ON 17 DECEMBER THAT HE HAD SEEN LITTLE OR NOTHING OF COSTAINS, BY CONTRAST WITH MOST OF THE OTHER LEADING CONTENDERS INCLUDING BALFOUR BEATTY. I ASSURED HIM THIS IMPLIED NO LESSENING OF ENTHUSIASM ON THEIR PART, BUT I SUGGEST THIS COMMENT MIGHT USEFULLY BE PASSED ON TO THEM.
(C) EQUIPMENT ORDERS.
5. LETTERS OF INTENT HAVE BEEN SIGNED THIS WEEK FOR THREE MAJOR ORDERS OF EQUIPMENT REQUIRED FOR THE PLATFORM CONTRACT CONSISTING PRIMARILY OF DRILLS, BULLDOZERS AND TRUCKS RESPECTIVELY. ALTHOUGH ALLEN WOULD NOT SAY WHO THE SUPPLIERS WERE TO BE, HE SAID NONE WILL BE FROM THE UK. (THERE ARE NOT MANY BRITISH SUPPLIERS FOR THE VERY LARGE EQUIPMENT REQUIRED, SO THIS OUTCOME IS NOT SURPRISING. THE ORDERS HOWEVER ARE VERY LARGE).
(D) EXTENSION OF ADVANCED WORK CONTRACT.
6.
THE ADVANCED WORKS CONTRACT ON CHEK LAP KOK, UNDER WHICH KUMAGAI AND MAEDA, BOTH OF JAPAN. ARE FLATTENING CHEK LAP KOK ISLAND, HAS BEEN EXTENDED TO INCLUDE A SIGNIFICANT RECLAMATION AREA. THIS HAS AGAIN BEEN WON BY KUMAGAI AND MAEDA. THE VALUE IS APPROXIMATELY HKD 100 MILLION.
(E) LEGAL ADVISORS TO THE PAA.
7.
AN APPOINTMENT IS EXPECTED BEFORE CHRISTMAS. IT WILL BE A
BRITISH LAW FIRM REPRESENTED IN HONG KONG BUT ALLEN WOULD NOT REVEAL THE NAME.
(F) FINANCIAL ADVISORS TO THE PAA.
8.
THIS IS A BIGGER CONTRACT AND HAS BEEN KEENLY FOUGHT. ALLEN TELLS ME THEY HAVE REDUCED THE CONTENDERS TO THREE, ONLY ONE OF WHOM IS BRITISH. I SUSPECT THAT THE OTHER TWO ARE AMERICAN ALTHOUGH ALLEN WOULD NOT REVEAL NAMES. GIVEN THAT A MAJORITY OF THE ORIGINAL CONTENDERS WERE BRITISH, AND INCLUDED MOST OF THE MAJOR BRITISH MERCHANT BANKS, IT IS DISAPPOINTING THAT WE ONLY
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