For discussion PWSC(96-97)46
on 10 July 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories East Development
(Civil Engineering - Land development)
459CL - Ma On Shan development - roads and drains in area 77, Ma On Shan

Members are invited to recommend to Finance Committee the upgrading of 459CL to Category A at an estimated cost of $190 million in money-of-the-day prices for the construction of roads and drains in area 77, Ma On Shan.

---

PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
459CL - Ma On Shan development - roads and drains in area 77, Ma On Shan -- Breakdown of estimates for consultants’ fees for construction stage

---

PROBLEM

There are no roads and drains to serve the proposed developments in area 77, Ma On Shan.

PROPOSAL

2. The Director of Territory Development, with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade 459CL to Category A at an estimated cost of $190 million in money-of-the-day (MOD) prices for the construction of roads and drains in area 77, Ma On Shan.

PROJECT SCOPE AND NATURE

3. The scope of the project comprises -

1. construction of approximately 3 500 metres of carriageways and associated footpaths and cycle tracks;
2. construction of a road bridge and a pedestrian/cycle subway; and
3. implementation of the associated drainage, sewerage and landscaping works.

JUSTIFICATION

4. According to the continuing programme for the development of Sha Tin New Town, we plan to provide about 4 000 flats of the Home Ownership/ Sandwich Class Housing on the newly formed reclamation at area 77, Ma On Shan by late 1999 for a population of about 15 000. To tie in with the population intake and the planned developments, we need to start the construction of the roads, associated footpaths and cycle tracks, and sewerage and drainage system in the reclamation area in November 1996. We also plan to build a slip road in the form of a road bridge as part of the road network system serving the area to connect with Sha Tin.

5. We propose to construct a cycle-track network to link up the developments in the area and to integrate the network with the Ma On Shan cycle-track system. The cycle-track network will be a major resort and internal circulation facility for Ma On Shan New Town. We also plan to construct a pedestrian/cycle subway across one of the proposed roads to enhance safe circulation of pedestrians and cyclists and to provide an alternative access to the waterfront promenade.

6. Furthermore, we plan to provide strips of landscaping works and amenities along the proposed roads and cycle tracks to serve as a buffer between the carriageways and the footpaths.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $190 million in MOD prices (see paragraph 8 below), made up as follows -

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

9. 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 2001. We will tender the works under a standard remeasurement contract because the quantities of earthworks and foundation works involved may vary depending on the actual ground conditions. We will provide for adjustment due to inflation in the contract because the construction period will last longer than
21 months.

10. We estimate the annually recurrent expenditure for the project to be $3.28 million, of which $49,000 (in respect of the sewerage works) will be charged to the Sewage Services Trading Fund. Subject to the Legislative Council passing a resolution 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

11. We consulted the Traffic and Transport Committee of the Sha Tin District Board on the proposed works in September 1995. Members of the Committee had no objection to the proposal.

12. We gazetted the proposal under the Roads (Works, Use and Compensation) Ordinance in January 1996 and received no objection.

ENVIRONMENTAL IMPLICATIONS

13. The Director of Environmental Protection completed an Environmental Review of the project in April 1996 and concluded that no Environmental Impact Assessment would be required as the project will provide internal roads and drains for serving the future developments in area 77, Ma On Shan and would not adversely affect the environment. We shall control dust, odour, noise and site run-off impacts during construction in compliance with established standards and guidelines by incorporating appropriate environmental pollution control clauses in the contract.

LAND ACQUISITION

14. This project does not require land acquisition.

BACKGROUND INFORMATION

15. We included 459CL in Category B in September 1995 for the construction of roads and drains in area 77, Ma On Shan.

16. We engaged consultants to undertake the investigations and design for the proposed works, and charged the cost of $4.3 million to the block allocation Subhead 7008CX¹ “Consultants’ fees and charges and major in-house investigations for new towns and urban area development projects”. The consultants have completed the detailed design work and the relevant drawings.

17. We plan to start the proposed works in November 1996 for completion in May 1999.

1 -- The former block allocation Subhead 7008CX has been replaced by a new block allocation Subhead 7100CX "New towns and urban area works, studies and investigations for items selected in Category D of the Public Works Programme" since 1 April 1996. The new block allocation was approved by Finance Committee on 8 March 1996

2 -- The former block allocation Subhead 7008CX has been replaced by a new block allocation Subhead 7100CX "New towns and urban area works, studies and investigations for items selected in Category D of the Public Works Programme" sicne 1 April 1996. The new block allocation was approved by Finance Committee on 8 March 1996.

---

Enclosure to PWSC(96-97)46

459CL - Ma On Shan development - roads and drains in area 77, Ma On Shan -- Breakdown of estimates for consultants’ fees for construction stage

*MPS = Master Pay Scale

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 Territory Development. The consultancy works for this project is included as part of the overall consultancy agreement for New Town Development at Ma On Shan.

---