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Officials intervene in Disney site row

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The Government has stepped in to a dispute between the Disneyland contractor and a mainland supplier which the contractors say could jeopardise the project.

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The delay in the project involves 66 million cubic metres of sand-fill material at the 200-hectare Penny's Bay site.

The Post has learned that the Civil Engineering Department held a meeting last month with the project contractor and a state-backed mainland company that had held up supplies of the sand-fill.

No agreement was reached but the contractor was understood to be under pressure to co-operate with the mainland company as sand supplies had been delayed for two months.

The department refused to confirm it had exerted pressure on the contractor but said it would be kept informed of the progress of the project. 'Contractors are required to advise us on the progress and other technicalities relating to their works,' a spokesman said.

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A source for the contractor, HAM-Hong Kong Construction, said if it was forced to reach a deal the cost of the sand could rise by $300 million, which might be borne by SAR taxpayers.

'The Government misled the contractor to acquire sand from a Zhuhai company whose sand supplies had already been taken over and monopolised by another company,' the source said.

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