BES protests 'Taipei Twin Towers' stipulations
By Ted Chen, The China Post
September 30, 2014, 12:03 am TWN
TAIPEI, Taiwan -- BES Construction Co. (BES, 中華工程) yesterday railed against what it perceived as an unreasonable list of 10 additional stipulations tacked on by the Taipei City Government as the company finalizes contract terms to build the “Taipei Twin Towers” (雙子星) project.
Among the list of demands is that the company will be required to secure a financing guarantee for the NT$65.3 billion in capital required to carry out the bid within 30 days of notice on Sept. 5.
The company deemed the Taipei City Government's sudden demand as absurd, an impossible feat unlikely to garner the consent of banks.
Most notably, BES yesterday raised the question of whether the requirement is designed to displace its claim to the project, paving the way for another company favored by Taipei City Mayor Hau Lung-bin.
Twin Towers Project's Rocky History
The Twin Towers project in February last year came to a halt following the inability of the forerunning bidder Taipei Gateway International Development Co. Ltd. (TGID, 太極雙星) in fulfilling stipulated terms, rendering the contract nullified. TGID at the time failed to produce funds equal to 3 percent of total construction costs, or NT$1.89 billion. In November last year, the Taipei City Government notified BES that as the runner-up bidder, the company would be awarded the contract. TGID's failed bid had also resulted in imprisonment on corruption charges for ruling party Taipei City Counselor Lai Su-ju (賴素如) for her role in securing the contract for TGID, which was later found to be an ill-equipped paper company.
Despite its protest yesterday, the company maintained that it does not wish to relinquish its claim to the project, and that it will take legal actions should they be "wronged" by the Taipei City Government.
BES stated that they have met with the Taipei City Government on three occasions since February of last year to discuss the specifics of the contract, and that with the exception of terms demanding prepayment of public infrastructure on the project, the company has consented to required stipulations.
The company noted that their outrage is attributed to the 10 additional stipulations tacked on by the Taipei Department of Rapid Transit Systems (DORTS, 捷運局) without prior notice on top of the eight previously agreed-upon terms, a situation found by BES to be contrary to the conventions of business conduct and ethics.
BES executive Wu Guo-sun (吳郭森) added that dialogue between the company and the Taipei City Government ceased on Feb. 27, and that low-level officials remained clueless on the progress of the project and the intent of their superiors over the past 10 months. Wu stated that he could not fathom how the additional terms were conceived.
Meanwhile, in response the DORTS stated that BES had previously consented to the terms, and that the added stipulations are designed to secure funding for the project should the company fail to complete construction and preserve the interests of the public. The DORTS added that Oct. 6 is the deadline for BES to sign the contract.
http://www.chinapost.com.tw/business...S-protests.htm