07-MAY-1992 18:26
BRITISH TRADE COMM
P.06
-5-
that
In
March
it could
this year, the Central Tender Board concluded
if there was â
guarantee
only further consider a tender from Hyundai from Hyundai's core companies covering Hyundai Engineering and Construction's performance under this contract.
In addition, a further step was taken to protect the Government from having to take Hyundai to court in South Korea to enforce guarantees, were the company to encounter cash difficulties that affected its performance. This step, recommended by the CTB, involved a request for a letter of
credit to
shortfall in working cover part
capital.
of
Hyundai's
-
for a
on March 27
The Financial Secretary made these two requests core company guarantee and a letter of credit - and April 8 this year.
Hyundai failed to comply with our requirements. Our hope last August that Hyundai would be able to comply has therefore not materialised. Against this background, the CTB decided that the Tsing Ma Bridge Contract could not be
awarded to Hyundai.
Let me now turn to the next two lowest tenderers, Hong Kong International (comprising companies from France, the UK, US, China
elsewhere), and the Anglo-Japanese
Consortium.
and
As you can see,
the Anglo-Japanese is the lowest of
these two by $219m, and it has been the lowest since the tenders were submitted last December.
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