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Hong Kong Cruise Terminal Tender To Start In Q4

by Mary Swire,, Hong Kong

13 August 2007

The tendering exercise for Hong Kong's Kai Tak cruise terminal project will start in the fourth quarter of 2007, the Tourism Commission has said, adding that it has proposed development parameters for the project.

According to a Commission document submitted to the Legislative Council on August 9, bidders must have at least three years' immediate experience in operating a cruise terminal with a minimum annual throughput of 200,000 homeport passengers. They will be required to propose a design that can provide flexible services to different cruise operators.

The terminal's first berth is slated to open in February 2012. The successful bidder will be required to provide a bond of 5% of the estimated construction cost of the facilities to the Government, as a financial disincentive against any delays.

The second berth should be commissioned within three years upon a demand letter being issued by the Director of Lands. The target date is beyond 2015.

The successful bidder can also commission the second berth earlier to handle smaller cruise vessels, subject to Government approval, which would take into account various implications such as traffic conditions and marine safety.

The successful bidder will be given the flexibility to complete the commercial area in phases by 2020, and it will be required to build a landscaped deck on the roof of the cruise terminal building to allow the public to enjoy the waterfront.

The landscaped deck can be delivered in phases to allow creativity and flexibility in design and completion of the commercial facilities. Such a phasing arrangement should not compromise the iconic outlook of the terminal as the first berth is commissioned.

Bidders will be required to submit a comprehensive plan with specific performance pledges on the operation, business and marketing aspects. They will be required to demonstrate commitment to attract cruise vessels home-porting at the new cruise terminal.

They need to set out their arrangements on fees and charges, and allocation of berthing slots, and should submit pledges on how they would work together with the Tourism Board and Tourism Commission in cruise market development.

The successful bidder will be required to provide space for the board's visitor service kiosk at the new cruise terminal rent-free.

On the tender assessment, the Commission announced that a committee will be formed to assess the proposals, and a 30:70 weighting ratio for financial and non-financial criteria will be adopted.

The Government intends to seek nominations from bodies such as the Institute of Architects and the Tourism Board for appointment as independent advisors for the assessment process during the tender exercise.

An interdepartmental steering committee will be established to monitor implementation of the land lease after the tender award.

The successful bidder will be required to enter into a service agreement with the Government. It will include performance pledges made by the bidder, in particular those relating to the operation, management and maintenance of the new terminal.

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