Shenzhen Energy Files Judicial Review Over HKD21.9 Billion I•PARK2 Contract
HK01 · 2 SOURCESabout 2 hours ago2 MIN
Summary
Shenzhen Energy Environmental Protection Company Limited, a subsidiary of Shenzhen Energy Group, has filed a judicial review application at the High Court challenging the Environmental Protection Department's decision to award the I•PARK2 contract to Hong Kong Energy Recovery Park, a joint venture that includes China State Construction Engineering Corporation (Hong Kong) Limited. The applicant argues that Development Bureau should have suspended China State Construction's tender qualifications for fatal industrial accidents, yet the HKD 21.95 billion contract for the Tuen Mun waste-to-energy facility proceeded unchanged .
Key Points
- The I•PARK2 contract covers design, construction, and 15-year operation of the second phase integrated waste management facility in Tuen Mun's Tsang Tsui, with an awarded value of approximately HKD 21.95 billion
- On July 13, 2025, Shenzhen Energy Environmental Protection received notification that its tender for I•PARK2 had been rejected, with the contract awarded to Hong Kong Energy Recovery Park instead
- Two fatal industrial accidents involving China State Construction occurred: one at Chek Lap Kok on July 10, 2025 (Development Bureau suspended their roads and drainage category qualification the following day), and another at the Kai Tak Hospital Phase 2 site on April 22, 2026 (no suspension followed)
- The applicant sent four letters in July 2025 to the Chief Executive's Office, Development Bureau, and Environment and Ecology Bureau seeking clarification, but received no responses
- According to the Works Tender Notice Appendix, if a bidder or joint venture member has suspended tender status at the deadline, their tender shall not be considered
Why It Matters
The case raises fundamental questions about Hong Kong's contractor qualification suspension mechanism and whether government departments applied consistent standards when fatal accidents occurred. A ruling in favor of Shenzhen Energy could invalidate a HKD 21.95 billion contract and force a re-tender process, while also establishing clearer guidelines on when industrial fatalities should trigger automatic tender suspensions for public works projects .
The case raises fundamental questions about Hong Kong's contractor qualification suspension mechanism and whether government departments applied consistent standards when fatal accidents occurred. A ruling in favor of Shenzhen Energy could invalidate a HKD 21.95 billion contract and force a re-tender process, while also establishing clearer guidelines on when industrial fatalities should trigger automatic tender suspensions for public works projects .