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fa
Patan
HKA 182/3
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FM BTC HONG KONG
TO IMMEDIATE INTRA
TELNO INTRA 123
OF 07111OZ MAY 92
AND TO IMMEDIATE FCO
INFO PRIORITY SEOUL, TOKYO, PEKING, ECGD
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165041
MDHIAN 3054
~PY
« VIST?
FOR HALL, HEAD OF PEP
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MY TELNO INTRA 122: HONG KONG AIRPORT PROJECT: MAIN BRIDGE
CONTRACT.
SUMMARY
1.
THE HONG KONG GOVERNMENT ANNOUNCES THE AWARD OF THIS APPROXIMATELY POUNDS 500 MILLION CONTRACT TO THE ANGLO-JAPANESE CONSTRUCTION GROUP CONSISTING OF, IN EQUAL SHARES, TRAFALGAR HOUSE, COSTAIN AND MITSUI.
DETAIL
2. EVENTS TODAY, 7 MAY, HAVE FOLLOWED THE TIME-TABLE DESCRIBED IN MY TUR. THE AWARD OF THE CONTRACT TO THE ANGLO-JAPANESE GROUP WAS ANNOUNCED TO LEGCO, SITTING AS THE FINANCE COMMITTEE, THIS MORNING, ALTHOUGH THE SESSION IS RESUMING AGAIN THIS AFTERNOON. ALTHOUGH PRESS AND PUBLIC WERE NOT ALLOWED IN, TWO MEMBERS OF LEGCO HAVE GIVEN ME THEIR ACCOUNTS. THERE APPEARS TO HAVE BEEN NO SIGNIFICANT CRITICISM OF THE AWARD TO THE ANGLO-JAPANESE GROUP, ALTHOUGH THERE WAS CONSIDERABLE QUESTIONING OF THE FAILURE OF HYUNDAI TO GET IT.
3.
THE AWARD WAS THEN ANNOUNCED TO A PRESS CONFERENCE AT NOON. AT THIS THE COMPETITIVE PRICES OF THE BIDDING GROUPS WERE SPELT OUT. HYUNDAI'S BID WAS HK DOLLARS 4.7 BILLION, THAT OF THE ANGLO- JAPANESE GROUP HK DOLLARS 7.1 BILLION, THAT OF THE FRENCH LED INTERNATIONAL GROUP WAS NOT REVEALED BUT WE KNOW IT TO BE HK DOLLARS 7.4 BILLION, AND THAT FOR THE ALL JAPANESE GROUP WAS GIVEN OUT AS HK DOLLARS 10.9 BILLION. THE VALUE IS RATHER LOWER TO THE ANGLO JAPANESE GROUP THAN WE HAD EARLIER SUPPOSED, BUT IT IS STILL A HUGE CONTRACT BY ANY STANDARDS WHICH SHOULD DO A LOT FOR TRAFALGAR HOUSE AND COSTAINS AS WELL AS MANY OTHER BRITISH SUB-CONTRACTORS WHO SHOULD NOW BE WELL PLACED TO GET WORK.
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