Tender result for operating and managing Sheung Shui Slaughterhouse
The Food and Environmental Hygiene Department (FEHD) today (April 9) announced the result of an open tender for operating and managing the Sheung Shui Slaughterhouse (SSSH).
"The current Sheung Shui Slaughterhouse Operation Services Agreement will expire on July 31. Last August, the FEHD invited private sector operators both in and outside Hong Kong through open tender to operate and manage the slaughterhouse. By close of tender, a bid was received from Ng Fung Hong Limited, the current operator," an FEHD spokesman said.
"The Tender Assessment Panel, after thorough assessment, considered that Ng Fung Hong's tender met the requirements in terms of technical and financial information, and recommended its acceptance. Having considered the tender report, the Central Tender Board approved the acceptance of the tender."
To further improve the operation and management of the slaughterhouse, a number of enhancements have been incorporated in the terms of the new contract.
"The operator will be required to ensure maximum utilisation of lairage facilities in a cost-effective manner, and allocate lairage spaces to all users of Sheung Shui Slaughterhouse services and facilities on a non-discriminatory basis," the spokesman said. "The operator has to admit live food animals and allocate lairage spaces on a first-come-first-served basis, and to levy lairage and related fees and charges on the basis of the number of admitted live food animals as well as the hours in using the lairage.
"The operator may levy different levels of fees and charges depending on the arrival hours, duration of stay of live food animals, etc. Any change to fees and charges proposed by the operator, however, will be subject to the Government's prior approval.
"The operator will also have to provide information and records to the Government to facilitate monitoring of its performance.
"The new contract will also provide a system of sanctions and incentives to motivate the operator to improve and excel. During the contract period, the operator will be financially sanctioned for breaches of contract terms and rewarded for service enhancements with tangible benefits."
According to the new contract, the operator shall pay $7 million to the Government every quarter for the right to operate the Sheung Shui Slaughterhouse, or 14.5% of the gross income received in the relevant preceding three months of business, whichever is higher. The new agreement will have an initial term of four years beginning August 1 this year, with an option for the Government to offer no more than two three-year extensions, subject to the operator's satisfactory performance.
Ends/Thursday, April 9, 2009
