For discussion
PWSC(98-99)41
on 25 November 1998

HEAD 703 - BUILDINGS
Education - Primary
257EP - Primary school in Po Lam Road Housing Development, phase 1, Po Lam Road, Kowloon

Members are invited to recommend to Finance Committee the upgrading of 257EP to Category A at an estimated cost of $114.7 million in money-of-the-day prices for the construction of a 30-classroom primary school in the Po Lam Road Housing Development, Po Lam Road in Kwun Tong.

PROBLEM

There are not enough primary schools in Kwun Tong District to meet increases in demand for new school places.

PROPOSAL

2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Education and Manpower, proposes to upgrade 257EP to Category A at an estimated cost of $114.7 million in money-of-the-day (MOD) prices for the construction of a 30-classroom primary school in the Po Lam Road Housing Development, Po Lam Road, Kwun Tong.

PROJECT SCOPE AND NATURE

3. The proposed primary school is a standard design 30-classroom school building. It will have -

1. 30 classrooms;

2. six special rooms, including a computer-assisted learning room and a language room;

3. four remedial teaching rooms;

4. a guidance activity/interview room;

5. two interview rooms;

6. staff rooms and a staff common room;

7. a student activity centre;

8. a conference room;

9. a library;

10. an assembly hall;

11. a multi-purpose area; and

12. ancillary accommodation including a lift and relevant facilities for the handicapped.

JUSTIFICATION

4. To meet increase in demand for primary school places and to help achieve the policy target of enabling 60% of pupils in public sector schools to study on a whole-day basis by the commencement of the school year 2002/03, the Director of Education (D of E) has been making plans to build an additional 73 schools for completion by August 2002. To date, 37 of these schools have been upgraded to Category A and three of the 37 schools have been completed.

5. Kwun Tong District now has 29 public sector primary schools providing 678 classrooms. The Director of Education (D of E) forecasts that an additional 238 classrooms will be required to meet increase in demand for school places and to achieve the policy target of enabling 60% of pupils in public sector schools to study on a whole-day basis by the school year 2002/03. Three primary school projects providing 84 classrooms have been upgraded to Category A and planned for completion in the school year 2000/01. 257EP will further reduce the shortfall by 30 classrooms to 124 classrooms. The remaining shortfall will be met by other school projects which are currently being planned.

6. In order to tie in with the overall public housing development programme in Po Lam Road, we will entrust the construction of the school to the Housing Authority (HA).

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $114.7 million in MOD prices (see paragraph 8 below), made up as follows -

	$ million
(a) Piling (raft foundation)	2.6
(b) Building	49.0
(c) Building services	11.3
(d) Drainage and external works	20.7
(e) Contingencies	8.4
(f) 2% Housing Authority on-cost	1.8
	______
Sub-total	93.8	(at December 1997 prices)
(g) Inflation allowance	20.9
	______
Total	114.7	(in MOD prices)

The construction floor area of 257EP is 10 526 square metres. The construction unit cost, represented by building and building services costs, is $5,729 per square metre at December 1997 prices. D Arch S considers this construction unit cost reasonable. A comparison of the standard cost of a 30-classroom primary school with the estimated cost of this school is at the Enclosure.

8. Subject to approval, we will phase the expenditure as follows -

Year	$ million (Dec 1997)	Price adjustment factor	$ million (MOD)
1999 - 2000	9.7	1.12890	11.0
2000 - 01	45.2	1.19663	54.1
2001 - 02	35.3	1.26843	44.8
2002 - 03	3.6	1.34454	4.8
	______		______
	93.8		114.7
	______		______

9. We derive the MOD estimates on the basis of Government's forecast of trend labour and construction prices for the period 1999 to 2003. We will entrust the construction of the school to HA which will include the foundation and building works as part of the housing estate development contract. The contract will be on a lump-sum basis with provision for price fluctuation because the contract period will be longer than 21 months.

10. The cost of furniture and equipment, estimated to be $4.2 million, will be borne by the school sponsor as the school will be allocated for operating as a new aided school.

11. We estimate the additional annually recurrent expenditure for the school to be $17.9 million.

PUBLIC CONSULTATION

12. We consulted the Social Services Committee of the Kwun Tong Provisional District Board in September 1998. Members supported the project.

ENVIRONMENTAL IMPLICATIONS

13. Based on the Preliminary Environmental Review (PER) completed by Director of Housing (D of H) in October 1998, the Director of Environmental Protection recommends to provide insulated windows and air-conditioning to four special rooms on the 2/F and 3/F facing Po Lam Road so as to keep the road traffic noise impact on the proposed school within the limits stipulated in the Hong Kong Planning Standards and Guidelines. We have included the costs of these measures in the project estimate.

14. We will control noise, dust and site run-off nuisances during construction through the implementation of appropriate mitigation measures under the relevant contract.

LAND ACQUISITION

15. The project does not require land acquisition.

BACKGROUND INFORMATION

16. We upgraded 257EP to Category B in September 1998. D of H has completed site investigations for the project and is preparing the detailed working drawings and tender documents using in-house staff resources. To tie in with the phase 1 housing development programme of the Po Lam Road Housing Development, D of H plans to start the construction works in August 1999 for completion in May 2001.


Education and Manpower Bureau
November 1998
(PWSC0034/WIN2)

Enclosure to PWSC(98-99)41

	Standard cost*	257EP
	$ million (at Dec 1997 prices)
(a) Piling	9.7	2.6	(See note A)
(b) Building	49.0	49.0
(c) Building services	10.8	11.3	(See note B)
(d) Drainage and external works	8.0	20.7	(See note C)
(e) Contingencies	7.8	8.4
(f) 2% Housing Authority on-cost	-	1.8	(See note D)
	_____	_____
Total	85.3	93.8
	_____	_____
(g) Construction floor area	10 526m2	10 526m2
(h) Construction unit cost {[(b)+(c)] |(g)}	$5,681/m2	$5,729/m2

* Assumptions for standard cost

1. The estimation is based on the assumption that the school site is uncomplicated and without abnormal environmental restrictions. No allowance is reserved for specific environmental restrictions such as the provision of insulated windows, air-conditioning and solid boundary walls to mitigate noise impacts on the school.

2. No site formation works/geotechnical works are required as they are normally carried out by other government departments under a separate engineering vote before handing-over of the project site for school construction.

3. Piling cost is based on the use of 112 numbers of steel H-piles at an average depth of 30 metres, on the assumption that percussive piling is permissible. It also includes costs for pile caps, strap beams and testing. No allowance is reserved for the effect of negative skin friction due to fill on reclaimed land.

4. Cost for drainage and external works is for a standard 30-classroom primary school built on an average level site of 6 200 square metres, without complicated geotechnical conditions, utility diversions, etc. (i.e. a greenfield site).

5. No consultancy services are required.

6. Furniture and equipment costs are excluded as they are usually borne by the sponsoring body of an aided school.

7. The standard cost for comparison purpose is subject to review regularly. We will review, and revise if necessary, the standard cost which should be adopted for future projects.

Notes

A. Raft foundation instead of piling will be used for the school because of the high rock level of the site. Piling is considered not suitable for school construction on a high rock level site.

B. Building services cost is higher due to the provision of air-conditioning as a noise mitigation measure.

C. The school is to be built as part of a phase of the Po Lam Road Housing Development. The drainage and external works costs are estimated on the basis of the gross floor area of the school building as a proportion of the total gross floor area for the subject phase of the estate. Due to the difficult nature of the site, elevated decks, footbridges and slopeworks will have to be provided. The cost of external works are therefore much higher than normal.

D. There is a standard arrangement to reserve 2% on-costs, for administrative and supervisory works, for projects entrusted to the Housing Authority.

(PWSC0034/WIN2)