Govt awards HK$14 billion public works December 2012

Govt awards HK$14 billion public works December 2012

Public works awarded December 2012

Govt awards HK$14 billion public works December 2012

Govt awards HK$14 billion public works December 2012

The government along with its majority owned railway operator MTRC (0066) awarded over HK$14 billion worth of contracts for construction and building services works in December 2012 with most of the work being public housing.

A recent gazettal notice late last month showed the government awarding a total of about HK$9.3 billion worth of work while the MTRC which is 77 percent owned by the government awarded HK$5 billion worth of civil construction works for the Shatin to Central Link.

Of the government contracts, about HK$8.15 billion worth of work was awarded by the Housing Authority’s Development and Construction Division for public rental housing units.

By way of comparison, for November 2012, the government awarded a total of HK$646.8 million worth of work while the MTRC did not make any tender awards for construction work.

The biggest HA contract went to mainland giant China State Construction Engineering (Hong Kong) with a contract worth HK$2.23 billion for public rental housing at Sha Tin Area 52 Phase 2.

Second placed was Hsin Chong Construction winning two HA contracts totalling HK$2.86 billion for public housing at Anderson Road Site D and at Hung Shui Kiu Area Phases Area 13 Phases 1 and 2.

Coming up third was Yau Lee Construction with a contract worth HK$2.22 billion for public housing at Anderson Road Site E Phases 1 and 2.

Recently the Government has been ramping up production of public housing units to meet demand due to widespread public discontent over lack of affordable housing and the high prices for private housing accommodation.

According to the Chief Executive’s Policy Address delivered last month, the Government intends to produce 75,000 public rental units in the five years starting 2012-13.

The MTRC awarded two civils contracts for the Shatin to Central Link, the biggest of which went to the Gammon-Kaden Joint Venture for the Hung Hum North Approach Tunnels valued at about HK$3.67 billion while Sembawang-Leader Joint Venture won the Diamond Hill station contract worth HK$1.67 billion.

The Architectural Services Department awarded contracts totalling about HK$807 million for work on government facilities with Shui On Construction Company accounting for most of it with a contract worth HK$799.3 million for construction of a sports centre, community hall and district library at Area 14B in Sha Tin.

Danny Chung

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