TNAG-2594-FCO40-3782-Appointment-of-Chris-Patten-as-new-Governor-of-Hong-Kong--Ap-1992 — Page 81

1992-05-07 18:56 G.I.S

ZCZC

GIS 19

To: All overseas offices

From: CIS (Duty Officer)

LOE

GIS/L/F/402

E

P.03/05

THURSDAY, MAY 7, 1992

TSING MA BRIDGE CONTRACT TO BE AWARDED

THE GOVERNMENT HAS DECIDED TO AWARD THE CONTRACT FOR THE CONSTRUCTION OF THE TSING MA BRIDGE TO THE ANGLO-JAPANESE CONSTRUCTION

JOINT VENTURE.

THE CONSORTIUM'S FIXED PRICE LUMP SUM OFFER OF $7,144 MILLION HAS BEEN ACCEPTED BY THE GOVERNMENT ON THE ADVICE OF CENTRAL TENDER BOARD, SUBJECT TO ADEQUATE FUNDS BEING MADE AVAILABLE BY FINANCE COMMITTEE.

"THE ANGLO-JAPANESE CONSORTIUM HAS SUBMITTED THE LOWEST ACCEPTABLE TENDER AND IS THE CLEAR WINNER ON THE BASIS OF PRICE, RELIABILITY FOR COMPLETION ON TIME, AND CONFORMITY WITH OUR SPECIFICATIONS, SAID MR K.Y. YEUNG, SECRETARY FOR THE TREASURY AND CHAIRMAN OF THE CENTRAL TENDER BOARD.

"THE $7,144 MILLION PRICE IS FIXED IN MONEY OF THE DAY TERMS. THIS IS WITHIN OUR $7,186 MILLION MONEY OF THE DAY EQUIVALENT OF THE AMOUNT WE HAVE ALLOWED FOR THE TSING MA BRIDGE IN THE LANTAU· FIXED CROSSING PROJECT ESTIMATE APPROVED BY FINANCE COMMITTEE LAST JULY. THAT AMOUNT, AT MARCH 1991 PRICES, WAS $5,197 MILLION.

"WE HAVE NOT ACCEPTED THE LOWEST OF THE FOUR TENDERS FOR THE PROJECT. THIS AMOUNTED TO $4,713 MILLION AND WAS SUBMITTED BY HYUNDAI ENGINEERING AND CONSTRUCTION CO LTD.

"IT HAS NOT BEEN ACCEPTED PRIMARILY BECAUSE HYUNDAI HAS NOT ABLE TO MEET OUR STANDARD REQUIREMENTS FOR WORKING AND EMPLOYED

BEEN CAPITAL.

"THESE CAPITAL REQUIREMENTS ARE A PREREQUISITE BEFORE THE AWARD OF ANY GOVERNMENT CONTRACT, THEY ARE NEEDED TO AVOID THE RISK OF A COMPANY FAILING TO COMPLETE A CONTRACT BECAUSE IT RUNS SHORT OF FUNDS.

"THE GOVERNMENT HAS APPLIED THE SAME RIGOROUS ASSESSMENT PROCEDURES TO EACH OF THE FOUR INTERNATIONAL TENDERERS FOR THIS CRITICALLY IMPORTANT AIRPORT CORE PROGRAMME CONTRACT.

"THERE HAS BEEN A STRINGENT AND SCRUPULOUSLY FAIR ASSESSMENT WHICH HAS INCLUDED THE TENDERERS' PRICES AND PROPOSALS, THEIR EXPERIENCE IN SUSPENSION BRIDGE CONSTRUCTION, AND THEIR ABILITY TO COMPLETE THE CONTRACT ON TIME TO THE STANDARDS WE REQUIRE," MR YEUNG SAID.

AND CENTRAL

THE TSING MA BRIDGE WILL CARRY BOTH ROAD AND RAIL TRAFFIC WILL BE ONE OF THE WORLD'S LONGEST SUSPENSION BRIDGES, WITH A SPAN OF 1,377 METRES.

LET

IT IS THE FIRST AND BIGGEST OF FIVE MAJOR CONTRACTS TO BE FOR THE LANTAU FIXED CROSSING, WHICH IS A CRUCIAL SECTION OF THE ROAD AND RAIL LINKS TO THE NEW AIRPORT AT CHEK LAP KOK.