TNAG-2409-FCO40-3503-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 72

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07-MAY-1992

18:29

BRITISH TRADE COMM

-4-

adequate working capital to maintain

"Contractors need

liquidity

they so that

can

finance

the On outgoings contract. Adequate employed capital is

is needed for the purchase of fixed assets such as construction plant and

other capital equipment.

"Means to meet our requirements were pointed out to Hyundai by way Of an inter-group guarantee and an irrevocable letter of credit to cover that part of the employed and working capital deficiency that Hyundai were not able to meet by other means. Hyundai have not been able to offer US satisfactory assurances that their position would be corrected.'

21

The tender evaluation procedure carried out by the Hong Kong Government has encompassed:

a) 2 comparison and evaluation of tender prices,

including their not present value which enables prices to be assessed on a uniform cash basis;

b)

assessments of technical and management

competence;

team

The

c) evaluation of the programme for construction;

ai

compliance with Government contract conditions.

Government VAC advised on technical matters by a of international experts in suspension bridge construction.

Except for

its tender price being second lowest, the Anglo-Japanese consortium camé first against all the assessment criteria. The consortium is very experienced in major bridge construction, including large suspension bridges, and in achieving requisite quality standards. The risk of

of project delay is assessed as the lowest. The consortium has also complied with the Government's standard requirements on employed and working capital.