Public works contracts worth $1.25 billion awarded May 2013

Public works contracts worth $1.25 billion awarded May 2013

Danny Chung:

 

 

Official records show public rental and subsidised housing projects accounted for most of the contracts awarded in the public sector in May 2013.

According to the government gazette and websites of government organsations contracts worth a combined value of HK$1.25 billion were awarded during the month.

Out of this total, the Housing Department of the Housing Authority accounted for about HK$874 million.

Notably a Home Ownership Scheme project is included, the first such project to go into construction since the government announced the resumption of the HOS in October 2011, albeit in a slightly modified form, after years of criticism by lawmakers and the public.

China State Construction Engineering (Hong Kong), a subsidiary of locally listed mainland contractor China State Construction International Holdings (3311), won a contract worth HK$217.9 million for foundations for Home Ownership Scheme developments at Cheung Ching at Tsing Yi and at ex-Tai Wo Hau Factory Estate, as well as hoarding works for a HOS project at Tung Tau in Yuen Long.

The Housing Authority is also busy on building more public rental housing, having awarded two contracts totalling HK$421.6 million for foundations works to China State again and also to Vibro (HK) for projects at San Po Kong and at Sha Tin respectively.

Meanwhile the Airport Authority will build a new airline lounge after awarding a contract worth HK$64.8 million to Pat Davie, the specialist fitting out and refurbishment subsidiary of SOCAM Development (0983), which is controlled by tycoon Vincent Lo Hong-shui.

The works will also include relocating the existing T6 passenger transfer facility and enlarging a toilet at the Arrivals Level of the Northwest Concourse to meet future demand.

Railway operator MTR Corporation (0066), in the absence of any big contracts to award for the time being, has awarded a contract to Chun Wo Construction and Engineering worth HK$101 million for improvement works at Fo Tan Station.

Separately the Public Works Subcommittee of the Finance Committee of the Legislative Council yesterday endorsed the controversial projects to extend the existing landfills at West New Territories Landfill and Northeast New Territories Landfill.

The government however will still have to wait until the Finance Committee formally approves the funds totalling HK$7.06 billion at a meeting next week.

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