Hongkong Electric Holdings has awarded a HK$42.8 million subcontract to HUD General Engineering Services. The subcontract is a connected transaction under listing rules, as HUD is a 50 per cent owned associate of Hutchison Whampoa, the power utility's controlling shareholder. It involves general electrical and mechanical works of Hongkong Electric's Lamma Power Station. Hongkong Electric, which supplies power to Hong Kong and Lamma islands, said the subcontract was awarded through a bidding system conducted by an independent main contractor. It said HUD had the lowest bid and that the contract value was negotiated on an arms-length basis. 'The company considers that the terms of the subcontract are fair and reasonable so far as the shareholders of the company are concerned and are on normal commercial terms,' Hongkong Electric said. The company said it would fund the subcontract from internal resources.
