Participate into Management, Operation and Maintenance business of toll road tunnel in Hong Kong. ―Promoting Infrastructure PPP Business and Technology Development in Overseas-
2021.07.06
Kumagai Gumi Co., Ltd. (President: Mr. Yasunori Sakurano) participate into a second-term of the Management, Operation, and Maintenance (hereinafter referred to as "MOM") of Tate's Cairn Tunnel (hereinafter referred to as "TCT") in Hong Kong through its subsidiary Pacific Infrastructure Management Limited (hereinafter referred to as “PIML”).
The contract term is years from 11 July 2021 to 10 July 2027 and the contract amount is approximately HK$495 million.
This is our 4th MOM business in Hong Kong following the first and second Eastern Harbour Crossing (hereinafter referred to as "EHC") MOM and the first TCT MOM.
In the future, we will expand Hong Kong's infrastructure MOM business by leveraging our track record in MOM and tunnel construction. We will also actively engage in PPP business in Australia and ASEAN by taking advantage of our track record and experience in Hong Kong and BOT business in Sydney Harbor Tunnel in Australia. In addition, in the implementation and development of MOM and PPP projects, we will actively propose technologies of inspection, maintenance and management, repair, IoT, traffic simulation etc. of the infrastructure owned by us and Japanese companies and contribute to the infrastructure export strategy of Japanese government.
１． History of the MOM Business
We have been participating in the MOM business in Hong Kong since August 2016.
EHC was constructed and operated under BOT scheme for 30 years beginning in 1986 and was returned to the Hong Kong government upon the expiration of the franchise period in August 2016. After the return, we have jointly invested and established Pacific Infrastructure Limited (our share is 20%, hereinafter referred as “PIL) with CITIC Pacific Limited(hereinafter referred as “CPL) and PIL entered into MOM contract with the Hong Kong government. The first term of the contract expired in August 2019, and PIL also got the contract for the second term.
TCT was also returned to the Hong Kong government upon the expiration of the franchise period of BOT (constructed and operated by other company). Since July 2018, PIML, which was jointly invested and established with CPL and 20% share is held by us, has entered into MOM contracts with the Hong Kong government. The first term of the contract has expired and PIML also got the second term contract.
２． Outline of the facilities and contract
(1) Overview of the tunnel
TCT is approximately 4 kilometers toll road tunnel through Tate's Cairn with two lanes each in both directions. It connects Diamond Hill in the Kowloon district and Shatin in New Territory district.
The average daily traffic volume is around 63,000. The tunnel was developed under BOT scheme and started operation in 1991 and then it moved to the MOM scheme in 2018.
(2) Scope and details of tasks
The tasks required of MOM operators include traffic control and monitoring, toll collection, patrols, traffic accident handling, emergency response services in the event of a disaster, and maintenance services such as maintenance and management of tunnels and ventilation buildings, maintenance of management offices, power supplies, ventilation, lighting, and other machinery and electrical equipment, traffic control and monitoring systems, and toll collection systems.
(3) Tender scheme and contract description
The tender for this MOM contract was announced in February of this year and PIML participated in the tender and submitted proposals on 9 April.
Tender of this MOM contract is a competitive bidding system based on the two-envelope system based on price and quality proposal and it is a total of 100 points including 50 points of price and 50 points of quality evaluation.
The contract term is years from 11 July 2021 to 10 July 2027 and the contract amount is approximately HK$495 million.
３． Our future business
In Hong Kong, the MOM contract has been adopted for the maintenance and management of infrastructure such as roads and transportation facilities. Currently there are more than 20 tunnels and bridges and many projects are scheduled to be implemented in the future. In Hong Kong, we also have many tunnel construction experience such as Eastern Harbour Crossing, which we have developed by BOT scheme, Western Harbour Crossing and the Eagle Nest Tunnel.
In the future, we will expand Hong Kong's infrastructure MOM business by leveraging our track records in MOM and tunnel construction. We will also actively engage in PPP business in Australia and ASEAN by taking advantage of our track record and experience in Hong Kong and BOT business in Sydney Harbor Tunnel in Australia. In addition, in the implementation and development of MOM and PPP projects, we will actively propose technologies of inspection, maintenance and management, repair, IoT, traffic simulation etc. of the infrastructure owned by us and Japanese companies and contribute to the infrastructure export strategy of Japanese government.
[Contact for inquiries regarding this release]
Corporate Communication Department Tel +81-3-3235-8155
[Contact for inquiries regarding this project]
International Administration Department Tel +81-3-3235-8639