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SCMP Reporter

More contracts for the Western Corridor Railway have been awarded without tender, a government source said.

  The value ranged from less than $100,000 to more than $1 million. The total cost was not known.

  The KCRC disclosed earlier in the summer that 14 contracts worth $80 million had been awarded without tender.

    'These are negotiated contracts which were awarded without tender due to reasons of urgency, expertise and those which involved just a small sum,' the source said.

  'There are internal guidelines stating contracts below a certain amount need to be tendered because the KCRC operates on commercial principles.

  'The auditor of the KCRC is not blind. If there are any irregularities, he would have noticed.'   Secretary for Transport Gordon Siu Kwing-chue declined to confirm there were more unreported contracts.

  But he said the Government had asked KCRC chairman Kevin Hyde to submit a list of contracts tendered or untendered.

  'I will ask Mr Hyde to disclose the full facts to the Government,' he said.

  'He should give an explanation if he thinks it is justified [to award contracts without tender].'   He said the KCRC would submit a report to the Government by September 17 and would explain the situation to a Legislative Council sub-committee, scheduled to meet on September 24.

  A KCRC spokesman said that prior to inviting tenders for detailed feasibility studies in January last year, it had been building up a 'knowledge base' and used a range of advisers.

  'This was done using negotiated contracts awarded in accordance with KCRC policy, procedure and the authority level prevailing at that time,' the spokesman said.

  'In the interest of accuracy and to ensure that we've got all the relevant information, we are reviewing all the contract documents to compile a full list of these contracts for presentation to the Legislative Council,' he said.

  Chen Zuo'er , the Chinese representative of the Joint Liaison Group, said yesterday that no consultancy, financial or construction contracts should be awarded before China and Britain reach agreement on the railway.

  The resumption of other issues relating to land were also subject to discussion by the two sides, he said.

  However, Mr Chen said all preliminary work undertaken at present was necessary and that the project should be discussed at the JLG.

  The Government promised to investigate whether there had been any irregularities.



Corridor contracts awarded untendered