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£72M boost for UK firms working on Hong Kong West Rail project

NEWS

DETAILS OF massive extra payments to UK contractors working on Hong Kong's West Rail project emerged this week.

Four British contractors - Amec, Balfour Beatty, Costain and Kier - have shared HK$825M (£72M) with their joint venture partners on the Kowloon Canton Railway Corporation's (KCRC) £4bn project.

The cash is part of the £133M KCRC has spent to head off an estimated £370M in claims for extra work, unforeseen ground conditions and acceleration payments (NCE 7 March).

Details of the payments - fiercely criticised by local law makers - are set out this week by KCRC.

Amec's three joint ventures received an extra £45.1M on contracts with a total value of £391M.

Amec is in joint venture with local contractor Hong Kong Construction to build Yuen Long and Long Ping stations in a £160M deal. It is also part of the HKACE consortium, with separate contracts for Siu Hong and Tuen Mun stations worth a combined £250M.

The Balfour Beatty joint venture with Zen Pacific Civil Contractors has received an extra £13M on its £200M Nam Cheong station project.

Kier is working in two joint ventures that have received a combined £10.5M.

The company's partnership with local firm Zen Pacific has received an extra £9M on the £112M Mei Foo tunnel project.

Kier's joint venture with Japan's Penta-Ocean has received £1M covering unforeseen ground conditions on its £160M job to build Tsuen Wan station.

The Costain-China Harbour Engineering consortium has received £3.9M million on its £63M contract to build the KCRC's West Rail headquarters building.

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