Gammon wins $9.2 billion worth public works in first half

Gammon wins $9.2 billion worth public works in first half

Public works worth $14.54 billion awarded in June 2013

Danny Chung

Gammon Construction has come out on top in terms of total value of public sector works contracts awarded to a single contractor in the first half of 2013, winning HK$9.2 billion worth of new work.

This is according to an analysis of tender awards for public sector projects in the government gazette.

Mainland contracting giant China State Construction Engineering (HK), a subsidiary of listed mainland giant China State Construction International Holdings (3311) came second with HK$7.96 billion while Australian contractor Leighton Contractors (Asia) came third with HK$5.24 billion.

However if China State’s stake in joint venture contracts is taken in to account, then it is likely that China State would have been the leader in terms of total value of new contracts won.

During the period, China State was involved in two large joint venture projects at the Central- Wan Chai Bypass and Tai Po treatment works with a combined total value of HK$6.6 billion.

China State’s stake in the joint venture projects is not known exactly yet although based on the company’s previous annual reports, its stake for a two company joint venture project is typically 50 percent.

For Gammon though, one single mega-project accounted for nearly all of the value of the public works contracts it won in the first half.

This was the Tuen Mun-Chek Lap Link Southern Connection worth HK$8.66 billion which was awarded by Highways Department last month.

Big hitter - list of public works contracts awarded to China State Construction Engineering (Hong Kong) during the first half of 2013  (Danny Chung)

Big hitter – list of public works contracts awarded to China State Construction Engineering (Hong Kong) during the first half of 2013 (Danny Chung)

According to the government gazette and related government organisations, public works contracts worth a total of HK$14.54 billion were awarded last month, most of which was accounted for by the previously mentioned Tuen Mun-Chek Lap Kok Link project.

The upgrading works at Stonecutters Island Sewage Treatment Works for the Harbour Area Treatment Scheme Stage 2A went to SITA-ATAL Joint Venture for HK$2.08 billion.

Meanwhile Shui On Construction Company, a subsidiary of SOCAM Development (0983) will be helping out in the relocation of the Department of Justice to the former Central Government Offices main and east wings after winning an Architectural Services Department contract worth HK$680 million.

Yau Lee Construction, a subsidiary of Yau Lee Holdings (0406) won a contract worth HK$1.53 billion for the design and construction of Yaumatei Specialist Clinic at Queen Elizabeth hospital.

Nearby, Hip Hing Engineering, a subsidiary of developer giant New World Development (0017) will design and build a reprovisioned Yau Ma Tei Police Station for a contract sum of HK$881.8 million.

The Court of Final Appeal and Development Office of the Judiciary will be moving to the former Legislative Council building with a little help from Unistress Building Construction which won the ASD contract for renovation of the building worth HK$361 million.

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