ENG-1995 — Page 308

THE AIRPORT CORE PROGRAMME

will be used initially at eight-minute frequencies, increasing, as required, to a maxi- mum of 10-car trains, operating every 4.5 minutes.

Serving northern Lantau, West Kowloon and Central, the Lantau Line is designed as a conventional mass transit commuter service. It will bring much-needed relief to the MTR's Tsuen Wan Line, particularly along the Nathan Road Corridor. Stations will be built at Central, West Kowloon, Tai Kok Tsui, Lai King, Tsing Yi and Tung Chung new town, with provision for later additions.

Five sites, totalling approximately 62 hectares, have been identified along the railway route for residential and commercial property development. These are at Central, West Kowloon, Tai Kok Tsui, Tsing Yi and Tung Chung.

During the year, the MTRC completed the detailed design of the railway and the award of the outstanding major civil and electrical and mechanical contracts. By the end of the year, all the major contracts had been awarded. The breakthrough of the first Airport Railway tunnel (the Tsing Yi tunnel) was achieved in December.

Contracts and Tenders

Up to the end of 1995, a total of 157 major contracts, worth about $94.3 billion, had been awarded. They included 88 contracts worth about $37.8 billion awarded by the government; 37 contracts worth about $33 billion awarded by the AA; 31 contracts at a total cost of $17.8 billion awarded by the MTRC and one construction contract awarded by the WHTC at a cost of $5.7 billion.

The government, AA, MTRC and WHTC welcome international participation in the ACP contracts and strictly apply Hong Kong's traditional level playing field' approach in tendering procedures and the award of contracts. A significant number of international companies, from a wide range of countries have won ACP contracts, often in joint ventures. By the end of 1995, Japan had won the largest share by value with 27 per cent of the total, followed by Hong Kong (22 per cent), the United Kingdom (16 per cent), the People's Republic of China (eight per cent), the Netherlands (six per cent), France (six per cent), Belgium (three per cent), New Zealand (three per cent), the United States of America (two per cent), Spain (two per cent) and Australia (two per cent). The remaining three per cent was shared by Germany, Italy, South Africa, Austria, Norway and Denmark. Firms winning consultancy contracts have come from Hong Kong, the United Kingdom, the United States of America, Australia, Japan, the Netherlands, France, Sweden, New Zealand and Germany.

Management and Cost Control

After the establishment of an overall strategy on the scope, programme and budget for the ACP, regular reviews were conducted in 1995. The strategy is the basis for the overall programme and its project management system. Fixed-price, lump sum contracts are being used for most projects to minimise risks to the government, especially from inflation and changes in the estimation of quantities.

Management and control systems have been implemented for the ACP, laying down procedures for monitoring and controlling programme progress and costs during the design and construction of the projects. Early warnings of possible cost increases are reported to the New Airport Projects Co-ordination Office (NAPCO) and relevant department heads. Upward trends, which could lead to cost increases,

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