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No early joy for construction firms
1. No early joy for construction firms
Contractors and consultants have welcomed the government's plans to spend $600
billion on infrastructure, but several believe the measures are not enough to
overcome falling workloads in the next 18-24 months. Keith Probert, High-Point
Rendel business development consultant, said: ``We are pleased with the commitment
to road and rail projects, but disappointed there was nothing new. The government
could have announced moves to improve co-ordination between departments and make
greater use of private finance to increase the number of projects available.''
Private finance, and involving contractors at an earlier stage of the procurement
process, would improve construction quality, cut costs and shorten construction
times, Mr Probert said. ``The projects will help the construction industry in
2003, but it is facing tough times between now and then. Also, the new rail projects
will only replace schemes such as West Rail and the Tseung Kwan O line that are
due for completion in 2002 and 2003. The schemes are not adding work for the industry.''
One senior contracting executive said: ``The spending plans won't help us over
the coming months. Between now and the end of this year there is only one major
project, worth more than $1 billion, that will come out to tender. We see very
few schemes next year. The construction industry is in crisis and while long-term
spending plans help they do nothing to resolve the short-term difficulties the
industry is facing.'' Another construction director added: ``Currently, both contractors
and consultants are facing cut-throat bidding and intense competition. These projects,
while welcome, are planned for the next 15 years and will not help the industry
in the coming months.'' The government plans to spend more than $300 billion on
transport projects such as the Penny's Bay rail link, the Sheung Shui-Lok Ma Chau
spur line, the Kowloon southern link and Deep Bay road link to Shenzhen. There
are also plans for an exhibition centre at Chek Lap Kok airport. Transport secretary
Nicholas Ng Wing-fui later said six new railways would be built by 2016 costing
more than $100 billion. They include the Sha Tin-Central link and Island Line
extensions. ``In the next 10 years, we will see the construction and improvement
of over 100kms of strategic roads, including Route 9 linking Tsing Yi and Sha
Tin, Route 10 linking Tuen Mun and North Lantau, the Shenzhen Western Corridor
and Deep Bay Link. These will cost more than $100 billion,'' he said. [Source,
Hong Kong iMail, 11 October 2001] |  |
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