FANNY W.Y. FUNG FANNY.FUNG@SCMP.COM
PUBLISHED : Friday, 02 October, 2015, 4:52pm
UPDATED : Friday, 02 October, 2015, 6:02pm
A resident collects fresh water in Kowloon City’s Kai Ching Estate, the first public housing project to be found with excessive levels of lead. Photo: Edward Wong
A bidding ban imposed on four construction companies as punishment over a lead-in-water scandal will cost the public coffers HK$1 billion, the Housing Authority has announced.
The figure was confirmed today after the authority’s tender committee met to decide on the winners of tenders for five public housing projects – four to build flats and one to build a community centre.
Four out of these five contracts would go over budget to the tune of HK$1 billion in total, committee chairman Cheung Tat-tong said.
READ MORE: Water at Hong Kong public housing estates tainted by lead from solder, task force says
A budget overrun for new public building projects had been expected. On Wednesday, the committee issued this warning as it announced ruling out the four firms from seven tenders launched between March and last month.
However, their competitors that put up lower prices might not necessarily be chosen, which could effectively mean higher project costs, Cheung said at the time.
The firms in question are China State Construction Engineering (Hong Kong), Paul Y. General Contractors, Shui On Building Contractors and Yau Lee Construction.
Fresh water samples taken at 11 public housing estates the four firms built were earlier found to contain lead levels in breach of World Health Organisation guidelines.
READ MORE: Hong Kong anti-corruption agency said to be probing city's lead-in-water scandal
The committee has yet to agree on the length of the suspension barring the four companies from taking up new jobs. It will meet again this month.
“The members all agree there should be a further suspension,” Cheung said. “But should the period be one month, two months, three, four, five or six?
“We have not yet reached a consensus and need more information before making a decision.”
http://m.scmp.com/news/hong-kong/health-environment/article/1863540/4-public-building-projects-cost-hk1-billion-more
