For discussion PWSC(96-97)54
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)
324CL - Tseung Kwan O development, phase III, remaining engineering works

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 324CL, entitled “Tseung Kwan O development, phase III, remaining reclamation in the town centre extension, stage I”, to Category A at an estimated cost of $19.9 million in money-of-the-day prices; and
2. the retention of the remainder of 324CL in Category B.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
324CL - Tseung Kwan O development, phase III, remaining engineering works -- Breakdown of the estimate for consultants’ fees for construction stage

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PROBLEM

The public dump at Tseung Kwan O (TKO) Area 86 will be full soon. There is a need for a new public dump in the nearby area. In addition, there is a need for more formed land for the development of the Tseung Kwan O (TKO) town centre extension.

PROPOSAL

2. The Director of Territory Development, with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 324CL to Category A at an estimated cost of $19.9 million in money-of-the-day (MOD) prices for the stage I works of the TKO town centre extension.

PROJECT SCOPE AND NATURE

3. 324CL covers engineering works associated with the development of phase III of TKO. The original scope of the project comprises -

1. site formation works at Pak Shing Kok, including roads and drains and service reservoir sites;
2. town centre extension - reclamation and main drainage extension;
3. provision of a finger pier and breakwater;
4. town centre extension - roads, drains and sewers, ferry and public piers and landscaping;
5. construction of Road P2 from Road D1 to Western Coast Road;
6. construction of the Western Coast Road;
7. cross-bay bridge and flyover at P2/D9 junction;
8. dualling of Hang Hau Road;
9. provision of flyovers at P2/D1 roundabout, at P2/D4 junction and at P2/D8 junction; and
10. connection of Road D6 from Road P1 to Road D3 from Road D6 to Area 137.

4. We upgraded part of paragraph 3(b) and paragraph 3(i) above to Category A in June 1993 and July 1995 respectively. The works we now propose to upgrade to Category A is the formation of 19 hectares of land in the TKO town centre extension area which are part of the remaining works in paragraph 3(b).

JUSTIFICATION

5. In 1995, Hong Kong disposed of 591 000 truckloads of inert construction waste¹ at public dumps in the territory including 445 500 truckloads at Tseung Kwan O by land access. We estimate that public dumping demand will increase at 4% per annum in the next four years. On this basis, we estimate that the public dump at TKO Area 86² now in operation will be full by late 1996. We need a new public dumping site in this area to continue to receive public dumping materials generated from east New Territories and Kowloon. We therefore propose to use part of the TKO town centre extension³ as a public dump which will be able to receive a total of some 184 000 truckloads.

6. The proposed public dump will help to reclaim land of about 19 hectares for various developments in the TKO town extension. Among these developments are a secondary school and two primary schools. The Director of Education plans to start the construction works for these schools in phases in TKO Area 65 in October 1997. As regards other land uses for the remaining reclaimed land, the relevant departments are still finalising their plans.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $19.9 million in MOD prices (see paragraph 8 below), made up as follows -

A breakdown by man months of the estimate for consultant’s fees is at the Enclosure.

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 1998. We will incorporate the proposed works into the proposed road works contract for 327TH⁴“Improvements to Ying Yip Road and Silverstrand Beach Road at junction with Hang Hau Road and Clear Water Bay Road” to facilitate savings in preliminaries, overheads and resident site staff cost. The contract will be a standard re-measurement contract because the roadworks involve extensive earthworks, the quantities of which are subject to variation depending on actual ground conditions. We will provide for inflation adjustment in the contract as the duration of the contract period is longer than 21 months.

10. The proposed works do not have any recurrent financial implications.

PUBLIC CONSULTATION

11. We presented the draft Tseung Kwan O Outline Zoning Plan (OZP), which covers all the works under 324CL, to the Sai Kung District Board in January 1992. The District Board supported the proposed works.

12. We gazetted the town centre extension works under the Foreshore and Sea-bed (Reclamations) Ordinance on 18 October and 25 October 1991. We received an objection from the Hong Kong Oxygen & Acetylene Company Limited. The Company objected to the proposed works on the grounds of obstructions to marine access and possible adverse effects on its seawater cooling system. After explanation from the representatives of Territory Development Department, the Company subsequently withdrew the objection. We gazetted the authorisation of works on 4 June 1992.

ENVIRONMENTAL IMPLICATIONS

13. The proposed works form an integral part of the overall Tseung Kwan O New Town reclamation, the environmental impacts of which were addressed in an Environmental Impact Assessment (EIA) study completed in May 1990 as part of the feasibility study. The Director of Environmental Protection completed an Environmental Review in April 1996 for the proposed works and concluded that the recommended mitigation measures would be sufficient to control dust, noise, site runoff and water quality impacts arising from the proposed works. No further EIA is therefore necessary. We will implement all the recommended mitigation measures including monitoring programmes to ensure that water, air and noise control standards are observed.

LAND ACQUISITION

14. This project does not require land acquisition.

BACKGROUND INFORMATION

15. We upgraded 324CL to Category B in December 1991. In June 1993, Finance Committee approved upgrading of part of 324CL to Category A for the preparation of the seabed and construction of the permanent seawall for the town centre extension. In July 1995, Finance Committee approved upgrading of part of 324CL to Category A which comprises piled foundations for the proposed flyover over the P2/D8 junction.

16. We have engaged consultants to undertake the investigations and detailed design for the proposed works and charged the cost of $0.3 million to the block allocation Subhead 7008CX⁵ “Consultants’ fees and charges and major in-house investigations for new towns and urban area development projects”. The consultants have completed the detailed design and drawings. We plan to start the proposed works in November 1996 for completion in April 1997.

17. We will implement the remainder of 324CL in further stages starting from July 1997 for completion by August 2002.

1 -- Inert construction waste is waste generated by the construction industry and comprises earth, broken rock, concrete and building debris, like bricks and plaster.
2 -- This is the only public dump by land access in Tsuen Kwan O. There is another pulic dump in TKO Area 137 stage I which only collects public dumping materials from Aldrich Bay barging point by sea.
3 -- The extension covers parts of TKO Areas 65, 66, 67, 72 and the whole Area 68.
4 -- PWSC endorsed the upgrading of 327TH to Category A on 12 June 1996.
5 -- 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.

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Enclosure to PWSC(96-97)54

324CL - Tseung Kwan O development, phase III, remaining engineering works -- Breakdown of the estimate 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 proposed consultancy is part of the overall consultancy agreement for the Tseung Kwan O development, phase III.

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