CONFIDENTIAL
XCCI(92)41
The Tender
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The consortium has submitted a "conforming proposal" in response to the Western Harbour Crossing Project Brief i.e. to design, construct and operate the dual-three lane immersed tube road tunnel connecting West Kowloon Reclamation and Sai Ying Pun according to the alignment and configuration contained in the Project Brief, as well as the section of Route 7 from Rumsey Street to Belcher Bay. The casting yard for immersed tube construction is located at Tseung Kwan O, requiring reclamation work. Estimated completion date is 1 July 1997.
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An alternative proposal using the Shek O Quarry as the casting yard has also been submitted. This is the option favoured by the consortium. Estimated completion date is also 1 July 1997. Under both conforming and alternative proposals, Government is presented with the option of the bidder commencing work early under a Provisional Agreement.
Other Proposals
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In addition to the BOT bid, Government has also received two proposals, one from the Western Harbour Crossing Contractors (led by Aoki Corporation) and the other from the Third Harbour Crossing Joint Venture (led by Leighton Contractors Asia Ltd). These are very preliminary, and propose that Government should consider undertaking the project on a design and build basis, with the latter group offering limited finance for the construction period. Our objective remains to implement the WHC under a BOT arrangement, as agreed by Members on 14 January 1992. The latter proposals will therefore not be pursued.
Next Steps
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The BOT bid is now being evaluated. While our negotiating position will be weaker in a single-tender situation, the aim will be to arrive at the best possible terms through negotiation. It is expected that evaluation of the proposal should be completed by mid August, to be followed by negotiation. Members will be consulted on the terms of the franchise by December 1992, to be followed by consultation with the Airport Committee in January 1993. The enabling legislation will be introduced into the Legislative Council by April 1993. Construction will commence after enactment of the enabling ordinance, or earlier upon execution of a Provisional Agreement if we should opt for this arrangement.
Executive Council
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Private notes are available after approval.