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Hong Kong's tainted water scare
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A worker install a new water pipe at Kai Ching Estate. Photo: May Tse

Housing professional says 'loopholes exist' in tendering for Hong Kong public flats, but not to blame for tainted water

System is not perfect but Housing Authority official denies cheapest bids win by default

Loopholes exist in tender processes for the construction of public housing, a quantity surveyor who oversees bidding exercises at the Housing Authority has admitted.

But the authority did not award its contracts to the lowest bidders by default, Cheung Tat-tong said, denying claims the city's tainted-water scandal was due to cheap building works.

Cheung chairs a new eight-member committee under the authority tasked with reviewing quality control and works supervision of water supplies at public housing. He expects to complete a full review in three to five months, inclusive of recommendations for the government.

Its goal was "not to find out who was responsible" for the excessive lead found in tap water, but to determine what went wrong along the way.

"Our committee's job is to review, to look internally at [how to improve] our existing mechanism. There are definitely loopholes," Cheung said on DBC Radio yesterday.

"Are the problems in product specifications, materials procurement, the inspection or the delivery of materials? Or are the problems in choosing the contractor or in the tender process?"

Additionally, he dismissed reports that the authority picked the cheapest bidder, saying it adhered to a "two-envelope" tender process.

The "first envelope" submitted by a contractor laid out its technical, non-pricing standards, such as its history and track record, and only after the bidder met acceptable standards was its "second envelope", on pricing, opened.

Four lawmakers are members of Cheung's committee, which was officially formed on Friday to comprehensively review current arrangements for quality control and monitoring of fresh-water system installations at public housing estates.

It is one of three teams set up by the government to investigate the water-safety scare. The Water Supplies Department is heading a separate task force, on top of an independent commission of inquiry to be led by a judge.

Secretary for Transport and Housing Professor Anthony Cheung Bing-leung echoed Cheung Tat-tong's stance, rejecting accusations that the government had compromised the safety of drinking water in pursuit of lower construction costs.

He also said a "thorough" solution was to replace the piping completely, contingent on more discussion with contractors.

Undersecretary for food and health Professor Sophia Chan Siu-chee said children under six whose blood had been found to contain excess lead would get follow-up services related to intelligence tests based on their needs.

This article appeared in the South China Morning Post print edition as: 'Loopholes present' in tendering for public flats
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