Hong Kong’s Paul Y Construction, in joint venture with Italian tunnelling group SELI, has finally received HK$260.8M (US$33.4M) to cover outstanding claims on tunnelling works for stage one of Hong Kong’s strategic sewage disposal scheme. No details of the payments have been released by the Drainage Services Department.
But the claims were settled after Paul Y-SELI instituted legal proceedings against the government following a row over claims for extensions of time in addition to variations for extra work.
Insiders said it was ironic that Paul Y-SELI was forced to resort to legal action, because the government pledged about five years ago that such action would not be needed.
Two other contractors, Skanska and Gammon Skanska-Cementation, which were responsible for completing other sections of the 25km long deep tunnel network, had all outstanding claims paid last year.
Paul Y-SELI was responsible for finishing the network linking Chai Wan on Hong Kong Island with Kwun Tong and Tseung Kwan O across Victoria harbour in Kowloon.
The JV was paid more than two years after work on the HK$8.5bn first phase scheme was completed, on 28 November 2001, which was about three and a half years late compared with the original May 1997 project deadline.
