CONFIDENTIAL
152
050345
MDHIAN 3170
CONFIDENTIAL
FM BTC HONG KONG TO IMMEDIATE DTI TELNO INTRA 198
OF 240647Z JULY 92
INFO PRIORITY PEKING, FCO, ECGD
FOR HALL, HEAD OF PEP
HKA 182/3
TOP COPY Q DIST?
HONG KONG AIRPORT CORE PROJECTS: PLATFORM CONTRACT
SUMMARY
1. PAA ARE CLOSE TO SELECTING THE SUCCESSFUL CONSORTIUM. BALFOUR BEATTY ARE IN CLOSE TOUCH WITH THIS OFFICER AND SEEM CONFIDENT OF SUCCESS. COSTAIN AND MOWLEM, WHO ARE IN SEPARATE RIVAL GROUPS, ARE PLAYING THEIR CARDS MUCH MORE CLOSELY TO THEIR CHEST.
DETAIL
2. YOU WILL KNOW THAT ON 29 APRIL 1992 THE PAA INFORMED THE SIX CONSORTIA WHO SUBMITTED TENDERS THAT ALL THE BIDS EXCEEDED THE AUTHORITY'S BUDGET (THE LOWEST BIDS WERE IN THE REGION OF HKD12 BILLION, WHEREAS THE BUDGET HAD BEEN SET AT HKD10 BILLION). THE PAA THEN EXAMINED OTHER WAYS OF CREATING THE 1250 HECTARE PLATFORM AT A LESSER COST. THE SIX CONSORTIA WERE INVITED TO SUBMIT ALTERNATIVE TENDERS BY 26 JUNE 1992. FROM THOSE SIX, FOUR HAVE NOW BEEN SHORT-LISTED FOR FURTHER EVALUATION.
3. THE FOUR SHORT-LISTED CONSORTIA ARE (I) AOKI/HAZAMA JOINT VENTURE, (II) AIRPORT PLATFORM CONTRACTORS (LED BY NISHIMATSU BUT WITH COSTAIN AS MAJOR PARTNER) (III) HONG KONG INTERNATIONAL AIRPORT JOINT VENTURE (LED BY BOUYGUES OF FRANCE AND INCLUDING MOWLEM) AND (IV) THE HONG KONG AIRPORT RECLAMATION JOINT VENTURE (LED BY BALFOUR BEATTY). THESE FOUR GROUPS ARE ALL THOUGHT TO HAVE SUBMITTED BIDS FALLING BETWEEN HKD9.5 BILLION AND HKD10 BILLION. BALFOUR BEATTY, WHO HAVE BEEN KEEPING IN VERY CLOSE TOUCH WITH THIS OFFICE, ARE CONFIDENT THAT THEY ARE IN POLE POSITION ON PRICE. SIR ROBERT DAVIDSON (CHAIRMAN, BALFOUR BEATTY) IS IN HONG KONG AT PRESENT AND WILL REMAIN UNTIL THE WINNING CONSORTIUM HAS BEEN SELECTED BY THE PAA NEXT WEEK. ON THE OTHER HAND, COSTAIN AND MOWLEM HAVE NOT KEPT IN CLOSE TOUCH AND WE ARE LESS WELL INFORMED ABOUT THEIR POSITION. THE RUMOUR MILL HERE HAS IT THAT THE BRITISH CONTENT OF THE BIDS ARE BALFOUR BEATTY 25 PERCENT, COSTAIN LESS THAN 20 PERCENT AND MOWLEM ABOUT 10
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