For discussion PWSC(96-97)34
on 1 July 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Air and Sea Communications - Port Works
59AP - Mirs Bay vessel traffic centre - Civil works

Members are invited to recommend to Finance Committee the upgrading of 59AP to Category A at an estimated cost of $52.4 million in money-of-the-day prices for the construction of a vessel traffic centre at Mirs Bay, Ping Chau.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
59AP - Mirs Bay Vessel Traffic Centre - Civil Works ---Breakdown of the estimate of consultancy fees -

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PROBLEM

There is no remote radar station in Mirs Bay to monitor marine traffic and to ensure prompt response to emergencies.

PROPOSAL

2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Economic Services, proposes to upgrade 59AP to Category A at an estimated cost of $52.4 million in money-of-the-day (MOD) prices for the construction of a remote radar station at Mirs Bay, Ping Chau.

PROJECT SCOPE AND NATURE

3. The project scope comprises -

1. construction of a single-storey building with a floor area of 230 square metres to house the necessary radar, communication and associated equipment;
2. construction of an 18-metre high steel tower for the radar installation;
3. construction of a steel mast, 25 metres high, to support a direction finder antenna;
4. construction of a diesel fuel-storage tank; and
5. improvements to the existing helipad and access footpath.

JUSTIFICATION

4. Marine traffic in Hong Kong waters increased from 190 700 movements in 1985 to 430 200 movements in 1995. The annual growth rate is 8.5%. During the same period, marine casualties increased at an annual rate of 8.2% from 190 to 410 cases. Since 1989, the Director of Marine (D of M) has implemented a proactive programme of Vessel Traffic Services (VTS) enhancement to improve the safety and efficiency of vessel traffic and to protect the marine environment. In the past, the level of marine activity in Mirs Bay and Deep Bay was relatively low and, at present, there is no VTS radar cover for either of these areas. However, in recent years vessel movements in Mirs Bay and its approaches have been increasing.

5. This increase is due to the growing number of ships seeking to use the Hong Kong port and the expansion of port facilities in Tolo Harbour, including the Towngas Naphtha Terminal, a sludge tanker pier and waterfront sites for handling cement and other building materials. D of M estimates that the traffic so generated is 30 900 vessel movements a year.

6. In addition, the D of M predicts that the commissioning of cargo terminals and planned expansion at Yantian port on the northern shore of Mirs Bay will further increase marine traffic significantly. Yantian is developing rapidly into a major international container port. The first two berths commenced operation in June 1994 and D of M estimates that the port will have an annual throughput of 43 million tons by the year 2000. This will generate some 90 000 vessel movements a year in Mirs Bay and its approaches.

7. We are concerned that the significant increase in marine traffic activity in Mirs Bay will lead to a corresponding rise in marine risks such as collisions and strandings. Such accidents (especially those involving loaded tankers or container vessels with large fuel tanks) could result in devastating damage to the marine environment in the north-eastern waters of Hong Kong which are of considerable ecological beauty and recreational value. Tankers carrying naphtha (a dangerous chemical) to and from the Tolo Harbour area will further add to such a risk. In this connection, the North East New Territories Development Strategy Study¹ has drawn particular attention to the risk to the conservation of the area and natural environment associated with the development of Yantian Port, and the need to take preventive steps against accidents.

8. In the light of the above developments and concerns expressed, we propose to build a remote radar station for Mirs Bay at Ping Chau. This will monitor marine traffic and ensure prompt responses to emergencies. The station will be integrated with the existing VTS coverage of traffic movements elsewhere in Hong Kong waters. When in operation, we will be able to give timely directions to any ship detected to be in danger so as to avoid an accident.

FINANCIAL IMPLICATIONS

9. We estimate the capital cost of the project to be $52.4 million in MOD prices (see paragraph 10 below), made up as follows -

Due to insufficient in-house staffing resources, D Arch S proposes to use consultants to undertake contract administration services for the quantity surveying discipline. A breakdown by man months of the estimate for consultants' fees is at the Enclosure.

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

11. We have derived the MOD estimate on the basis of the Government’s forecasts of trend labour and construction prices for the period 1996 to 1999. We will tender the works under a lump-sum fixed price contract because we can clearly define the scope of works in advance, leaving little room for uncertainty.

12. We estimate the additional annually recurrent building maintenance cost for this project to be $50 000.

PUBLIC CONSULTATION

13. The District Officer (Tai Po) consulted the village representatives of Ping Chau, and the Sai Kung Rural Committee in January 1996. They had no objection to the project.

ENVIRONMENTAL IMPLICATIONS

14. D Arch S completed a Preliminary Environmental Review in August 1995. The findings indicated that the project would have no long term adverse impact. No Environmental Impact Assessment is therefore necessary. For short-term impacts, we will control noise, dust and site run-off nuisances during construction through the implementation of mitigation measures in the relevant contracts. Moreover, the construction of the Mirs Bay Vessel Traffic Centre should help to protect the local marine environment of the north-eastern waters of Hong Kong.

LAND ACQUISITION

15. This project does not require land acquisition.

BACKGROUND INFORMATION

16. We upgraded 59AP to Category B in November 1995. We have completed the site investigation work for the project. We have engaged consultants of the quantity surveying discipline for contract documentation at an estimated cost of $0.56 million. We have charged this amount to the block allocation Subhead 3100GX "Project feasibility studies, minor investigations and consultations' fees selected from items in Category D of the Public Works Programme". We plan to start work in December 1996 for completion in February 1998.

17. Apart from the civil works component of the project, we will separately seek Finance Committee's approval to purchase, at an estimated cost of $34.2 million, the necessary radar, communication and associated equipment under Head 708 "Capital Subventions and Major Systems and Equipment" in July 1996. We also intend to purchase a patrol launch at an estimated cost of $6.6 million. We will charge this to Head 100 Subhead 603 "Plant, vehicles and equipment" under delegated authority.

1 -- The North East New Territories Development Strategy Study was commissioned by the Planning Department in September 1993 and completed in August 1995. It reviewed the development strategy for the region in the light of recent studies and developed a long term comprehensive plan covering aspects of land use, transport and environment to guide medium and long term development.

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Enclosure to PWSC(96-97)34

59AP - Mirs Bay Vessel Traffic Centre - Civil Works ---Breakdown of the estimate of consultancy fees -

Notes

1. A multiplier factor of 3 is applied to the average MPS point to arrive at the full staff costs including the consultants' overheads and profit, as the staff will be employed in the consultants' offices. (At 1.4.95, MPS pt. 40 = $51,440 p.m. and MPS pt. 16 = $17,270 p.m.).
2. The figures given above are based on estimates prepared by the Director of Architectural Services. We will only know the actual man-months and actual fees when we have selected the consultant through the usual competitive system.

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