Public works worth $3.33b awarded in Jan 2014

Public works worth $3.33b awarded in Jan 2014

Govt awards $125b worth of new work in 2013

Contractors were awarded public works contracts worth totalling HK$3.33 billion in January 2014, most of which was for the government’s listed railway operator MTR Corporation (0066).

According to the MTR’s website, the company awarded contracts worth HK$2.31 billion during January, 85 percent of which was for the Shatin to Central Link project.

A joint venture of Kaden and Leader, both of which are owned by Build King Holdings (0240), was awarded a contract worth HK$871 million for the reprovisioning of Harbour Road Sports Centre and Wan Chai Swimming Pool.

A contract for advance works for the North South Line of the Shatin to Central Link worth HK$299.9 million was awarded to Hsin Chong Construction, a subsidiary of Hsin Chong Construction Group (0404).

The rest of contracts were for building services work for the Shatin to Central Link  and maintenance work for existing building services.

The government continued to spend on public rental housing  projects, with the Housing Authority awarding contracts worth a total of HK$373.7 million, most of which were building services related.

Vibro (HK), a subsidiary of NWS Holdings (0659), bagged a contract for foundations for public rental housing at Ex-Kwai Chaung Police Married Quarters worth HK$154 million.

Highways Department awarded a contract worth HK$323 million to the JSL-Autotoll joint venture for the traffic control and surveillance system for three projects associated with the Hong Kong-Zhuhai-Macao Bridge project, the Boundary Crossing Facilities, the Hong Kong Link Road and the Tuen Mun-Chek Lap Kok Link Southern Connection.

Meanwhile, the Housing Society, a government related organisation that builds subsidised housing projects, frequently in conjunction with the Urban Renewal Authority, recently uploaded details of its major contract awards last year.

According to its website, the Housing Society awarded contracts worth a total of HK$2.93 billion in 2013.

Chun Wo Construction and Engineering, a subsidiary of Chun Wo Development (0711), won two contracts for two URA projects worth a total of HK$792.3 million while Hip Hing Engineering, a subsidiary of NWS Holdings, won another URA related project worth HK$728.6 million.

All in all, the total value of new projects awarded by the government and related organsations in 2013, including the HK$10.3 billion contract for Contract 2 of the Liantang/Heung Yuen Wai Boundary Control project which the government gazette finally announced last month, totalled HK$124.7 billion.

Mainland contractor China State Construction Engineering (Hong Kong), the local subsidiary of listed state owned giant China State Construction International Holdings (3311), came in first in terms of total value of new public works project won as sole contractor in 2013 with HK$10.76 billion.

French contractor Dragages Hong Kong was second with HK$10.3 billion comprising of just one contract, the Liantang/Heung Yuen Wai contract mentioned above.

The inclusion of one Housing Society contract worth HK$915 million failed to lift the Paul Y family of contractors, owned by casino property developer Louis XIII Holdings (0577), in the rankings for public sector awards.

It finished at thirteenth place with just two contracts worth HK$940.9 million, behind the likes of Penta-Ocean (HK$1.8 billion), Build King (HK$1.48 billion) and Kwan On (HK$1.36 billion).

Danny Chung

 

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