For discussion PWSC(95-96)106
on 15 March 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
Hong Kong Island and Islands Development
(Civil Engineering - Land development)
329CL - Tai O development, package 4, stage I engineering works

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 329CL, entitled "Tai O development, package 4, stage I, intercepting sewers and pumping stations", to Category A at an estimated cost of $66.1 million in money-of-the-day prices; and
2. the retention of the remainder of 329CL in Category B, retitled "Tai O development, package 4, stage I, Tai O Creek improvement".

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
329CL - Tai O development, package 4, stage I engineering works

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PROBLEM

There is no sewerage system at Pung Lo Pang on Tai O Island. Villagers either use individual septic tanks or discharge the raw sewage directly into the sea.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 329CL to Category A at an estimated cost of $66.1 million in money-of-the-day (MOD) prices for the construction of intercepting sewers and associated pumping stations at Pung Lo Pang on Tai O Island.

PROJECT SCOPE AND NATURE

3. The full scope of 329CL comprises the construction of sewers and pumping stations in Pung Lo Pang and dredging of the Tai O Creek for a sampan anchorage area and access for maintenance barges.

4. The part of the project we now propose to upgrade to Category A comprises -

1. construction of about 1 500 metres of intercepting sewers;
2. construction of two sewage pumping stations¹ ; and
3. reconstruction of roads affected by the sewerage works.

JUSTIFICATION

5. In early 1984, we constructed a sewage treatment plant at Kau San Tei at the northern part of Tai O Island with a capacity of 1 220 cubic metres per day. This is sufficient to treat the effluent generated from the population of Tai O up to the year 2011. In 1984, we also completed a trunk sewer to collect the sewage discharged from Lung Tin Estate at Tai O Town and from residents along the eastern part of Tai O Island.

6. Residents in the remaining areas of Tai O continue to dispose of their sewage either through individual septic tanks or directly into the sea causing sanitation problems and pollution to the environment. In July 1987, the Tai O Development Strategy Review Study recommended that we extend the existing trunk sewer to serve the remaining villages in Tai O. The Development Progress Committee endorsed the recommendations of the Study in January 1988.

7. The sewerage works we now propose to construct will run along Shek Tsai Po Street via Kat Hing Back Street to Tai O Market Street and Kat Hing Street in Pung Lo Pang. Upon completion, the proposed works will serve a population of about 500 at Pung Lo Pang.

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the project to be $66.1 million in MOD prices (see paragraph 9 below), made up as follows -

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

10. We derive the MOD estimate on the basis of the Government's forecasts of trend labour and construction prices over the period between 1996 and 2000. We will tender the civil engineering works under a standard remeasurement contract because the construction of pumping stations and sewers will involve extensive earthworks. The quantities of these earthworks and the alignment of sewers are subject to variation during construction to suit the actual site conditions. We will also provide for inflation adjustment in the contract because the construction period will last longer than 21 months. We will tender the electrical and mechanical works under a fixed-price lump-sum contract because we can clearly define the scope of works in advance.

11. We estimate the annually recurrent expenditure of the proposed works to be $1.05 million, which will be a charge to the Sewage Services Trading Fund. In accordance with a resolution passed by Legislative Council on 26 July 1995 on appropriation of assets to the Trading Fund, the sewerage works under the project will, upon completion, become assets in the Trading Fund valued at cost.

PUBLIC CONSULTATION

12. In July 1994, we consulted the Tai O Rural Committee on the proposed works under 329CL. The Rural Committee had no objection to the proposal.

13. We gazetted the works under the Roads (Works, Use and Compensation) Ordinance in February 1995. We received one objection. After negotiation, we agreed to slightly change the land resumption plan so that the objector’s private lot will not be divided into two parts by the diversion and reconstruction of a public road. In January 1996, the Governor in Council authorised the works subject to the inclusion of these changes into the project brief.

14. We also gazetted the pumping station works under the Foreshore and Seabed (Reclamations) Ordinance in January 1995. We received no objection.

ENVIRONMENTAL IMPLICATIONS

15. The Director of Environmental Protection conducted an Environmental Review of the proposed intercepting sewers and pumping stations in March 1994 and concluded that no Environmental Impact Assessment was necessary. For long term impacts, we will install suitable odour control equipment in the proposed pumping stations to control possible odour emission. For short term impacts, we will control noise, dust, site run-off, water quality and mud dredging activities during construction through the implementation of mitigation measures in the works contracts. These mitigation measures include the use of quiet equipment, restriction of working hours and control of any dumping and effluent discharge.

LAND ACQUISITION

16. We will resume about 0.1 hectares of agricultural land for the intercepting sewer. The proposed land acquisition and clearance will not affect any households and rehousing is therefore not necessary. We will charge the cost of land acquisition and clearance estimated at $2.6 million to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

17. We included 329CL in Category AB (Category B under our present classification) in 1989 for the construction of the sewerage system in Pung Lo Pang and the dredging of the Tai O Creek. Originally, we scheduled to start the sewerage works in late 1991. In 1991, we revised the implementation programme of the project to commence in 1996 due to other more urgent commitments under the Airport Core Programme. We have explained the reasons for this delay to the Islands District Board in the course of submitting the annual Lantau and Islands Development Programme to the District Board for information.

18. We engaged consultants to undertake the design and investigations for the proposed sewerage works and charged the cost of $0.8 million to the block allocation Subhead 7008CX "Consultants' fees and charges and major in-house investigations for new towns and urban area development projects". The consultants have substantially completed the detailed design and works drawings.

19. We schedule to start the proposed works in July 1996 for completion in June 1998. We will implement the remainder of 329CL in stages commencing from June 1997 for completion by June 2001.

1 -- This is different from the original proposal of constructing only one pumping station as stated in PWSC Paper 1989/6 when Members agreed to upgrade the project to Category AB (this is the same as Category B under our present classification). The intention then was to construct a large pumping station with a deep sewer system. Howevere, in the light of the findings of the subsequent site investigation, we now propose the constructio of two smaller pumping stations with a swere system at a much shallower depth because this is more cost effective and will create less nuisance than the original one which requires substantial earth dredging works.

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Enclosure to PWSC(95-96)106

329CL - Tai O development, package 4, stage I engineering works

Breakdown of the estimate for consultants’ fees for construction stage

Notes

1. The average estimated cost per professional man month is about equivalent to a Senior Engineer on MPS point 47.
2. The average estimated cost per technical man month is about equivalent to a Technical Officer on MPS point 20.

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