China State bags last contract for highway widening project

China State bags last contract for highway widening project

Contractor forced to wait one year to win job worth $2.51 billion

Danny Chung:

 

After waiting nearly a year after tender submission, mainland contractor China State Construction Engineering (Hong Kong) has bagged the last contract for a major highway widening project in the New Territories.

In a press release Thursday, Highways Department said it had signed a contract worth HK$2.51 billion with the subsidiary of listed China State Construction International Holdings (3311), itself part of state owned giant China State Construction Engineering Corporation.

Director of Highways Lau Ka-keung said the latest contract was the last civil works contract for the widening of Tolo Highway and Fanling Highway between Island House Interchange and Fanling project.

The company will be responsible for widening a two kilometre section of the Fanling Highway between Tai Hang and Wo Hop Shek Interchange from a dual three-lane carriageway to a dual four-lane carriage way.

It will realign two secondary roads, build a vehicular bridge at Kau Lung Hang and demolish and reprovision five existing footbridges.

This latest award is China State’s second contract for the highway widening project.

Construction work in progress at Island House Interchange in this July 2013 progress photo. Widening of the Tolo/Fanling Highway is scheduled for completion in 2018  (Highways Department - HKSAR Government)

Construction work in progress at Island House Interchange in this July 2013 progress photo. Widening of the Tolo/Fanling Highway is scheduled for completion in 2018 (Highways Department – HKSAR Government)

In August 2009 it won the contract worth HK$1.85 billion for widening the section of the highway from Island House Interchange to Ma Wo.

Rival Gammon Construction bagged the contract for the section from Ma Wo to Tai Hang worth HK$2.38 billion in February 2010.

Highways Department said the remaining works for the highway widening project, a one kilometre section from Nam Wa Po to Kiu Tau, would be carried out under Contract 3 of the Liantang/Heung Yuen Wai Boundary Control Point Site Formation and Infrastructure Works by the Civil Engineering and Development Department.

In February 2009, the Finance Committee of the Legislative Council approved funding of HK$4.49 billion in money-of-the-day (MOD) prices for stage 1 of the project for the section from Island House Interchange and Tai Hang.

The committee approved further funds totalling HK$4.32 billion at MOD prices for stage 2 for the section from Tai Hang to Wo Hop Shek Interchange.

The government expects completion of the entire highway widening project by 2018.

It would appear though the government has been late by six months in awarding the latest contract.

“The works are scheduled to commence in February 2013 and will take about 64 months to complete,” said the tender notice dated 13 July 2012 in the government gazette.

 

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