Thirteen public works projects will be affected by the looming liquidation of one of Hong Kong’s largest construction firms, Paul Y Engineering Group, authorities have revealed but say the impact is manageable.
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The government said on Friday that it was prepared for the failure of the group, which had recently applied to the court to appoint provisional liquidators for five of its subsidiaries to address debt issues and formulate a restructuring plan.
Twelve of the company’s existing 13 public works contracts were joint ventures with other construction firms, it said.
The government said joint-venture partners were obliged under their contracts to complete the remaining work even if Paul Y ultimately had to liquidate.
“The Development Bureau has assessed that the joint-venture participants concerned are capable of undertaking the remaining works, and they have also expressed that they will continue to execute the contracts,” a government spokesman said.
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He said the only project solely undertaken by Paul Y was nearing completion.