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1. Ip rejects `super jail' plea

2. Cartoon

3. $13b deals share for CSCEC

1. Ip rejects `super jail' plea
Paris Lord, The Standard 15 May 2003

The Secretary for Security Regina Ip has refused a request to postpone a vote on funding of a proposed ``super jail'' off Lantau Island, according to opponents of the proposal.

The 59-member Legislative Council Finance Committee votes tomorrow on a request for HK$46.7 million for an engineering study of the HK$12 billion project.

Residents group Living Islands Movement (LIM) yesterday asked Ip to postpone the vote for several months ``to allow appropriate public consultation'' about the jail and its possible effects.

LIM members argue the case for the 7,220-prisoner jail has not been made, other more suitable sites have been overlooked and the site selection process lacks transparency.

They also fear reclaiming land between Sunshine and Hei Ling Chau islands for the jail will hit their property values, make tourists shun Lantau and destroy what could become the SAR's ``eco-tourism'' island showcase.

Should Legco sanction the HK$46.7 million payment, it believes the two-year engineering study could begin this month. Construction of the jail would possibly start in mid 2006, finishing in late 2012.

In a fax sent yesterday to LIM spokesman Tom Masterson, Ip said the vote could not be postponed because of a ``tight timetable'' to finish the jail by ``2013 at the soonest''.

``I do not agree with a lot of the points raised in your letter, but my colleagues would be happy to continue to discuss with you your concerns and those of your associates,'' Ip wrote.

In their request, LIM said the proposed jail would signal a failure of Hong Kong's immigration policy that jails ``[mainland] illegal immigrants instead of addressing this issue at its cause''.

The jail idea also illuminated ``the conflicts in government policy and planning priorities that need more careful consideration in a sustainable development context''.

LIM member and Mui Wo resident Neil McLaughlin last night said Ip's response was ``regrettable but predictable''.

The Security Bureau oversees the Correctional Services Department and also tentatively earmarked a jail site at Kong Nga Po in the northern New Territories, bordering the mainland.

According to a Legco Public Works Committee document, a super jail on either site would cost about HK$16 billion. Should a riot occur, it would take a full emergency unit 30 minutes to reach Kong Nga Po and 90 minutes to Hei Ling Chau.

The public works subcommittee, which approved the plan in February, said the New Territories site could be used for other development, and it chose the island site.

2. Cartoon
SCMP, 15 May 2003

3. $13b deals share for CSCEC
Keith Wallis, The Standard 13 May 2003

China State Construction Engineering Corporation (CSCEC), one of the mainland's top contractors, has won close to 20 per cent of all government works contracts over the past three years.

Official figures show the firm has won nearly HK$13 billion of the HK$68 billion worth of contracts that were awarded between January 2000 and the end of last March. The contractor, which only fully entered the Hong Kong construction market after the handover, has secured the lion's share of both heavy civil engineering and general building construction.

CSCEC has such a commanding position that its closest rival, fellow mainland firm China Harbour Engineering, has won 66 per cent fewer contracts by value. Even more startling is that CSCEC has won, either alone or in joint ventures, five out of the nine mega-projects _ those worth more than HK$1 billion each _ that were awarded up to March.

These include the third phase of the Central reclamation, the Route 9 Sha Tin Heights tunnel, Penny's Bay infrastructure and the third phase of the new Arsenal Street police headquarters. A league table of the top 30 contractors, compiled by The Standard from government figures, shows that by comparison, China Harbour Engineering trails CSCEC by a considerable margin. China Harbour has won just HK$4.02 billion worth of work over the past three years.

Hong Kong Construction is placed third, winning almost HK$2.8 billion worth of contracts, although this mostly reflects one single project, the HK$3.98 billion Penny's Bay reclamation deal it won in a joint venture with HAM Dredging. In fourth place is local contractor Cheung Hing Construction that has secured projects worth HK$2.71 billion since January 2000.

Another mainland contractor, China Road & Bridge Engineering, is fifth, with HK$2.26 billion worth of contracts, while local firm Able Engineering is sixth, winning HK$2.21 billion worth of orders. Not surprisingly, CSCEC has a commanding position in the individual tables, compiled by The Standard, of the top 10 civil engineering and building contractors.

For civil contractors, CSCEC won HK$9.49 billion worth of projects, compared with second-placed China Harbour Engineering that secured HK$3.95 billion worth of jobs.

But CSCEC faced stronger competition for building works. Even though it remained in pole position, securing deals valued at HK$3.49 billion, China State had two local contractors snapping at its heels. Second-placed Cheung Hing Construction secured work valued at HK$2.71 billion, and Able Engineering won HK$2.21 billion worth of government contracts.

The figures are based on information given to legislator David Chu last week that has been updated by The Standard to include the first three months of the year.

The results show the various works departments, such as highways, civil engineering and territory development, awarded more than 260 civil engineering and building contracts to about 90 separate contractors.

More than half of the total value of contracts _ about HK$42 billion _ were awarded for civil engineering works, and building works amount to about HK$26 billion. Despite the large number of contracts won by China State, the government was adamant the award of public works contracts was ``in no way monopolised by any company''.

Answering Chu, a member of the Hong Kong Progressive Alliance who asked for details of the contracts, Secretary for the Environment, Transport and Works Sarah Liao said tender competitions were open and transparent.

``Government procurement is always guided by the principles of open and fair competition, transparency, public accountability and value for money,'' she said, adding that for construction tenders an overall assessment was made using a 60:40 weighting for tender prices versus technical evaluation and performance.

For large or complicated works a marking scheme is used to calculate the technical evaluation scores, while a formula is used for less complicated contracts to calculate the combined price and performance scores. ``As a result, construction companies with good performance records will stand a better chance of winning a contract,'' she said.

As the government has already found, the procurement system is policed by World Trade Organisation's government procurement agreement. This allows firms to complain if they think their bids have been unfairly rejected, as three of the losing contractors did on the Central reclamation contract.

The companies _ Gammon Skanska, Penta-Ocean Construction and China Harbour Engineering _ decided to invoke the WTO appeals procedure after the Territory Development Department awarded the HK$3.8 billion contract to the fourth highest bidder, a joint venture between China State, Leighton Asia and Dutch marine works company Van Oord ACZ. The case against the government is continuing.

Speaking last week, Liao said: ``The government subscribes to the fundamental principle that procurement should be transparent and conducted on a fair and level playing field that does not give an unfair advantage to any supplier.

``We think there is already adequate competition among contractors bidding for public works projects.''