TNAG-2409-FCO40-3503-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 85

"OK.REF.JLG HUNG KUNG.

THU 07 MAY 92 15:31

PG.20

DRAFT

3ince August, 1991, the

Government

has been talking

with Hyundai about the company's financial position. Hyundai was pre-qualified in late-1990 on the basis of th unaudited half-yearly accounts to June 1990, as well as on technical grounds. Upon receipt of Hyundai's tuli, audi-ad 1000 Accounts in June 1991, we began to be concerned about 11:3 ability to meet the capital requirements for the sing Bridge contract. Since then we have been in regu. IN h with the company.

Ma

to

# In March and early April this year, we wrote to rk: Hyundai Busines5 Group to clarify our requirements for an inter-group guarantee and an irrevocable letter of credit Cover part of Hyundai's shortfall in working capital. Unfortunately Hyundai has been unable to comply with our requirements, or make acceptable alternative proposals. TЯ the circumstances. Hyundai cannot be qualified for the award of the contract," said Mr Yeung. (Please refer to the Appendix for details.)

two

The tender evaluation procedure has encompassed:

a)

bl

a comparison and evaluation of tender prices, including their net present value which enables prices to be assessed on a uniform cash basis:

AGGOSsments

·mpotence;

of technical ali manaqu

Cam

d)

evaluation of the programme for constru which involves assessing the chanc...... work being completed on time; and

examination

of tender qualifications

(1.8.

proposed contract conditions different from those required by the Government.)

The Government. was advised

International

experts

on technical matters by a in suspension bride