For discussion PWSC(95-96)59
on 8 November 1995
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
CAPITAL WORKS RESERVE FUND
HEAD 711 - HOUSING
Territory Development
(Civil Engineering - Land development)
New Subhead Tin Shui Wai further development - engineering investigations
Members are invited to recommend to Finance Committee the creation of a new item in Category A of the Public Works Programme for engaging consultants to carry out engineering investigations for further development in Tin Shui Wai at an estimated cost of $23.5 million in money-of-the-day (MOD) prices.
We will further develop Tin Shui Wai to provide more housing sites. We need to carry out engineering investigations to determine the public works that are required to form and service these sites.
2. The Director of Territory Development (DTD), with the support of the Secretary for Housing, proposes to include a new project in Category A of the Public Works Programme for engaging consultants to carry out engineering investigations for further development in Tin Shui Wai at an estimated cost of $23.5 million in money-of-the-day (MOD) prices.
3. The scope of the project comprises engineering investigations to determine the public works required at Tin Shui Wai to -
- form and service the whole of the Reserve Zone of 213 hectares; and
- service an area of 23 hectares in Areas 3, 30 and 31 in the Development Zone.
4. The investigations will address the engineering, traffic and transport, drainage and sewerage, utilities, environmental impact, landscaping, programming and costing aspects of further development in Tin Shui Wai.
5. As part of the engineering investigations, we will need to carry out necessary ground investigations and surveys.
6. The Task Force on Land Supply and Property Prices1 recommended the further development of Tin Shui Wai as a major source of additional housing supply. As a result, we have designated for housing development about 23 hectares of land in Areas 3, 30 and 31 in the Tin Shui Wai Development Zone (currently zoned as Undetermined land use) and about 70 hectares (out of a total land area of 213 hectares) in the Tin Shui Wai Reserve Zone (land to the north of the Development Zone). Upon full development, these areas will provide about 54 000 housing units for a population of about 170 000.
7. In order to cater for the proposed housing developments, we have to provide essential engineering infrastructure in Tin Shui Wai and adjacent areas. Engineering investigations are necessary to determine the scope and extent of these works. As we aim to make available about 45 000 of the 54 000 additional housing units by the end of 2001, we need to start the proposed engineering investigations as soon as possible.
8. DTD proposes to employ consultants to undertake the detailed investigations as he does not have the necessary in-house staff resources.
9. We estimate the capital cost of the project to be $23.5 million in MOD prices (see paragraph 10 below), made up as follows -
|
$ million
|
|---|
|
(a) Consultants fees
|
15.4
|
|
(b) Ground investigations and surveys
|
2.8
|
|
(c) Contingencies
|
1.8
|
|
Sub-total
(at December 1994 prices)
|
20.0
|
|
(d)Inflation allowance
|
3.5
|
|
Total
( in MOD prices)
|
23.5 |
A breakdown by man months of the estimate for consultants fees is at the Enclosure.
10. Subject to approval, we will phase expenditure as follows -
|
Year
|
$ million
(Dec 1994)
|
Price
adjustment
factor
|
$ million
(MOD)
|
|---|
|
1995 - 96
|
3.3
|
1.07500
|
3.5
|
|
1996 - 97
|
14.5
|
1.18250
|
17.1
|
|
1997 - 98
|
2.2
|
1.30075
|
2.9
|
|
20.0
|
|
23.5 |
11. We derive the MOD prices using price adjustment factors based on the Governments forecast of trend labour and construction prices over the period between 1995 and 1998. We will award the proposed engineering investigations on a lump-sum basis with provision for inflation adjustment. This is the normal form of contract we now use to engage consultants to undertake engineering investigations.
12. The proposed engineering investigations themselves will not give rise to any recurrent financial implications.
13. The Director of Planning consulted the Yuen Long District Board on the proposals of the Planning Departments study Preparation of Layout Plans for the Tin Shui Wai Reserve Zone on 22 June 1995. The District Board had no adverse comments in general but expressed concerns over transport and community facilities. We will address these issues as appropriate in the proposed investigations. We will consult the District Board again and the Advisory Council on the Environment when the findings and recommendations of the engineering investigations are ready.
14. The proposed consultancy study itself does not have any environmental implications. As part of the engineering investigations, the consultants will conduct an environmental impact assessment (including an ecology study that spans through the four seasons) and identify the necessary environmental mitigation measures for the proposed infrastructure in Tin Shui Wai during the construction and operation phases. The estimated cost of the environmental impact assessment is $5.2 million (at December 1994 prices) and is included in the overall cost of the proposed engineering investigations.
15. The proposed engineering investigations do not require land acquisition.
16. We schedule to commence the engineering investigations in December 1995 for full completion in July 1997.
1 -- In response to public concern about rapid increases in property prices, the Governor ordered the establishment of this interdepartmental Task Force in April 1994 to look into the problem. The Task Force published a report on its recommendations in June 1994.
Enclosure to PWSC(95-96)59
Breakdown of estimates for consultants fees
|
Category of works/items
|
|
Estimated man months
|
Estimated fee
($ million)
(Dec 1994)
|
|---|
|
(a) Site formation study
|
Professional
Technical
|
10
15
|
1.3
0.4
|
|
(b) Engineering infrastructure investigation
|
Professional Technical
|
23
15
|
3.1
0.4
|
|
(c) Transport and traffic assessment
|
Professional Technical
|
15
19
|
2.1
0.5
|
|
(d) Drainage impact assessment
|
Professional Technical
|
5
3
|
0.6
0.1
|
|
(e) Environmental impact assessment study
|
Professional Technical
|
28
49
|
3.8
1.4
|
|
(f) Project cost and implementation study
|
Professional Technical
|
5
3
|
0.7
0.1
|
|
(g) Supervision of ground investigations and surveys
|
Professional
Technical
|
5
10
|
0.6
0.3
|
|
Total
|
15.4
|
Notes
1. The average estimated cost per professional and technical man month is about equivalent to a Senior Engineer on MPS point 47 and a Technical Officer on MPS point 20 respectively.
2. The figures given above are based on estimates prepared by the Director of Territory Development. We will only know the actual man months and fees when we have appointed the consultant through the usual competitive system.
Last Updated on 8 December 1998
