HC Deb 16 March 1994 vol 239 c684W
Mr. Meacher

To ask the Secretary of State for Foreign and Commonwealth Affairs for what reasons the ODA appointed a temporary rock expert to the Pergau design review panel; what is the cost likely to be of further steel lining for the power tunnels; what assessment the ODA has made of whether the contractors had an adequate geological evaluation of the cost of the project when they were given the work; if he will place in the Library the relevant documents explaining the geological reasons requiring an increase in Balfour Beatty—Cementation costs; and if he will make it his policy that any extra cost should be borne by the contractor.

Mr. Lennox-Boyd

ODA appointed a rock mechanics expert for 2 weeks in early 1993 to advise Tenaga Nasional Berhad Malaysian power authority and ODA whether the design of the power tunnel and power cavern proposed by the contractor would ensure long term satisfactory and safe operation of the completed project. The cost of the additional steel lining in the power tunnel is the subject of a claim by the contractor for extra payment; this is currently being discussed by the contractor and Tenaga Nasional Berhad. Geological information available to the Contractor was taken into account in the price submitted to DTI and ODA in March 1989 and at the time of contract signature in 1991. Under the terms of the contract it is the contractor's responsibility to deliver the completed project for a fixed basic price subject only to (i) the application of agreed indices for cost escalation of certain items and (ii) for specified geological risks, the cost of which is to be shared between the Contractor and the client. The geological reasons for the likely cost increase for further steel lining are the concern of the contractor and Tenaga Nasional Berhad. ODA is not a party to the contract between them. ODA will not meet any of the additional costs.

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