TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 62

CONFIDENTIAL

69

051603

MDHIAN 9160

нка 182./3

Coppies

то

PR

CONFIDENTIAL

FM DTI

TO DESKBY 02233OZ BTC HONG KONG

TELNO INTRA 107

OF 02170OZ APRIL 92

FOR HEAP FROM ROGERS, PEP

67

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6/4.

Алм

NC ole/43/4

TF

Mr Burns

of Broadbent.

YOUR INTRA 88 : HONG KONG AIRPORT PROJECT: THE MAIN BRIDGE

■

THANKS FOR YOUR INTRA 88 THIS WAS TIMELY SINCE WE SAW MANZIE

ON 1 APRIL TO REVIEW PROGRESS.

2. MANZIE TOLD US THAT HIS INFORMATION WAS THAT THE FRENCH LED GROUP HAD NOW BEEN ELIMINATED, ESSENTIALLY ON THE BASIS OF THEIR LACK OF TRACK RECORD IN RECENT MAJOR BRIDGE BUILDING. SINCE THEY HAD CLEARLY UNDERSTOOD THE JAPANESE CONSORTIUM TO HAVE BEEN ELIMINATED, THIS MEANT THAT THE COMPETITION WAS NARROWED TO THE KOREANS AND THE AJC. I SHOULD MAKE IT CLEAR THAT NO-ONE IS SUGGESTING THAT ANYBODY HAS BEEN FORMALLY ELIMINATED: BUT MANZIE WAS CONFIDENT THAT EFFECTIVELY THE COMPETITION WAS BETWEEN THEM AND THE KOREANS. I REALISE THAT

THIS IS SLIGHTLY AT ODDS WITH SOME OF THE ACCOUNTS IN YOUR TUR.

3.

MANZIE SAID THAT THEY KEY DEVELOPMENT OVER THE LAST WEEK WAS THE APPROACH FROM THE HKG INDICATING THAT THEY DID NOT

PROPOSE TO TAKE UP THE FINANCIAL PACKAGES WHICH WERE ON OFFER FROM ANY OF THE CONTENDERS. HOWEVER THE HKG WENT ON TO SAY THAT QUOTE SOME TENDERERS HAVE INDICATED THAT THERE WERE ELEMENTS INCLUDED IN THEIR CONTRACT PRICES ATTRIBUTABLE TO THE

MAKING AVAILABLE OF FINANCE OFFERS CLOSE QUOTE. THEY THEREFORE INVITED THE AJC CAND THE OTHER BIDDERS) TO INDICATE IF ANY REDUCTION WAS POSSIBLE, NOW THAT IT WAS CLEAR THAT THE HKG DID NOT PROPOSE TO PURSUE A FINANCIAL PACKAGE. THE AJC

HAD RESPONDED ON THE BASIS THAT THEIR FIXED PRICE OFFER HAD

BEEN STRICTLY COMPLIANT AND THAT THEREFORE THERE WAS NO

ELEMENT OF COST WHICH WAS ATTRIBUTABLE TO ANY OF THEIR ALTERNATIVE FINANCIAL PROPOSALS. THUS THEY WERE UNABLE TO OFFER ANY REDUCTION ASSOCIATED WITH THAT. HOWEVER THEY WERE EXTREMELY CONCERNED THAT THE APPROACH APPEARED TO OFFER AN OPPORTUNITY TO THEIR COMPETITORS TO LOWER THEIR PRICES, WHETHER OR NOT ANY SUCH REDUCTION WAS STRICTLY ATTRIBUTABLE TO

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