For discussion EC(97-98)16
on 28 May 1997

ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 56 - GOVERNMENT SECRETARIAT :
PLANNING, ENVIRONMENT AND LANDS BRANCH AND WORKS BRANCH
Subhead 001 Salaries

    Members are invited to recommend to Finance Committee the retention of the following supernumerary posts in the New Airport Projects Co-ordination Office -

  1. up to 30 September 1998
    1 Administrative Officer Staff Grade C
    (D2) ($102,900 - $109,250)

  2. up to 30 June 1998
    1 Chief Engineer
    (D1) ($86,650 - $91,950)

PROBLEM

The New Airport Projects Co-ordination Office (NAPCO) needs directorate support to deal with pressing issues related to the construction and commissioning of the new airport at Chek Lap Kok in April 1998 and the Airport Railway in June 1998, to monitor the settlement of claims and contract disputes related to the Airport Core Programme (ACP) projects and to maintain a proactive community relations programme to promote the achievements of ACP. The supernumerary posts in NAPCO created for the purpose will lapse on 1 October 1997.

PROPOSAL

2. The Director of NAPCO (D,NAPCO), with the support of the Secretary for Works, proposes to retain the supernumerary posts of -

  1. one Administrative Officer Staff Grade C (AOSGC)(D2), currently designated as Assistant Director (Community Relations)(AD(CR)), for a period of one year up to 30 September 1998, to be retitled as AD(Community & Support)(AD(C&S)); and

  2. one Chief Engineer (D1), designated as Technical Manager (1)(TM(1)), for a period of nine months up to 30 June 1998.

JUSTIFICATION

3. At the Establishment Subcommittee meeting on 14 February 1996, and in connection with our proposal to retain 30 supernumerary directorate posts to deal with ACP and related projects, Members were advised that four supernumerary posts of one AOSGB(D3)(Deputy Director, NAPCO), one AOSGC(D2)(AD(CR)), one Government Engineer (GE)(D2)(AD(Technical)) and one Chief Engineer (D1)(TM(1)) in NAPCO would be phased out by 1 October 1997 subject to a review six months before their expiry date. Having reviewed the position in the light of the latest developments, we see a clear need to retain two of these posts, TM(1) and AD(CR) up to 30 June 1998 and 30 September 1998 respectively. The reasons for their proposed retention are outlined in the following paragraphs.

(A) Assistant Director (Community Relations)

(to be retitled as Assistant Director (Community and Support))

Local/Overseas Interest in ACP and Overseas Promotion

4. The AD(CR) takes charge of the Community Relations Division and is responsible for all community relations issues concerning ACP projects. As the strong interest in ACP will not fade away with the completion of Government-funded projects, NAPCO will have to maintain an active visitors’ programme. There will continue to be requests for briefings and visits from community groups and overseas visitors, especially VIPs and the media. Our capability to complete eight of the ten ACP projects on time and within budget, apart from being a good story for Hong Kong, is also our best credential as a service provider on infrastructural development. On the overseas front, NAPCO, in the coming year, will work with Hong Kong’s overseas offices to arrange a programme of overseas visits and briefings by senior staff from NAPCO and members of Airport Development Steering Committee, to introduce ACP achievements and to promote Hong Kong’s new landmark, the Lantau Link as well as its position as a service centre for infrastructural development. AD(CR) will direct the campaign and will have to do several briefings a week himself so as to handle difficult questions.

5. NAPCO is currently operating and managing an Exhibition Centre at Castle Peak Road and will be opening a Visitors’ Centre cum Viewing Platform at Tsing Yi in June 1997. The former is already a popular venue which has attracted over 600 000 visitors since its opening in early 1996. We expect that the latter would attract even more community groups, local residents and tourists alike. Both of them require effective management and high quality presentation. At the same time, high level discussions are underway with other Government departments and interested bodies on major development of the Tsing Ma Bridge work site at Northwest Tsing Yi into a major tourist attraction. This requires steers from AD(CR).

Community Issues relating to ACP Projects Commissioning

6. While we have resolved satisfactorily community issues in relation to the Government-funded ACP projects, there still remains other issues which arise from the completion of the new town development at Tung Chung and the opening of the new airport and the Airport Railway in relation to the local community. We need to tackle these issues proactively through proper problem solving and close co-ordination between Government departments and the Airport Authority (AA)/ the Mass Transit Railway Corporation (MTRC). The personal involvement of the AD(CR) in attending to these issues is essential.

Airport Opening

7. NAPCO will continue to co-ordinate inputs from Government departments into major exercises connected with the Airport Opening in April 1998 and will act as the liaison point between various Government departments and the AA. While the Project Management Office will handle technical issues, AD(CR) will tackle the non-technical ones. Examples where co-ordinated Government inputs are needed are Airport Readiness Trials which involve community groups and the Airport Relocation which involves Government departments both as clients (such as Customs & Excise Department and Immigration Department) and as supporting organisations (e.g. Government Supplies Department, Government Flying Service, Royal Hong Kong Police Force, Fire Services Department and Marine Department). Careful planning and effective and speedy co-ordination are pre-requisites to a smooth ‘mid-night transfer’ of airport operations from Kai Tak to Chek Lap Kok. D,NAPCO will have major responsibilities in this exercise. He needs substantial directorate support, at least at D2 level.

Residual Responsibilities of the Deputy Director, NAPCO

8. Currently, there are four divisions Committee Secretariat Divisions are accountable to under the responsibility of the Deputy Director, NAPCO which post will lapse on 1 October 1997. Amongst these divisions, the Media Relations Division is headed by a Chief Information Officer, which post will be retained up to 30 September 1998. A recent review of NAPCO’s commitments in the year to come suggests that we can advance the deletion of three of the 11 Information Officer grade staff by one year. On operational grounds, there is always a need for close co-operation between community relations and media relations functions. We therefore propose to combine the reduced Media Relations Division and the Community Relations Division into a new Community and Support Division upon the lapse of the Deputy Director, NAPCO post on 1 October 1997.AD(C&S), will head the new Division.

9. We also propose to subsume the other division, namely the Administration & Support Division under the Community & Support Division. We expect that the workload of this division will become increasingly heavy in preparation for the disbandment of NAPCO in September 1998. The job will be more complex than usual as the phasing out will include the consultancy now used by NAPCO and assets disposal will entail the transfer of equipment and computer hardware and software acquired by the consultancy to Government inventory.

10. In view of the complexity and magnitude of the work described in the preceding paragraphs, D,NAPCO needs a D2 officer to head the new Community & Support Division and to provide him with administrative support after the lapse of the Deputy Director, NAPCO post. We therefore propose to extend the tenure of the AD(CR) up to 30 September 1998, who will be redesignated AD(C&S), to head the new division.

11. D,NAPCO has considered the feasibility of assigning the community relations, media relations and administration responsibilities to AD(Committee) who heads the Committee Secretariat Division of NAPCO, the Deputy Director, NAPCO andas opposed to the retention of the AD(CR) posts.October 1997. However, he concluded that this was not viable, as AD(Committee) would have no spare capacity to take on the additional workload, given her increasing commitments in keeping close track of AA’s project costs and progress and in servicing the newly established process of submitting joint progress reports to the Airport Development Steering Committee by AA and NAPCO. Furthermore, she has to support of support D,NAPCO’s role as a member of the AA Board and to deputise for D,NAPCO as required on AA’s various committees. Issues such as progress on airport security, airport charges, AA’s post-construction management structure and AA’s dealings with business partners which all contribute towards preparation for airport opening in April 1998 have taken up a great proportion of her time and will continue to do so in the remaining months of NAPCO.

(B) Technical Manager (1)

12. The TM (1), of the Chief Engineer (D1) rank, currently assists AD(Technical)(AD(T)), a Government Engineer (D2), in administering the ACP Special Labour Importation Scheme, overseeing ACP site safety issues and managing NAPCO Project Management Consultancy. We undertook to review the continued need for the two posts six months before their lapsing date on 1 October 1997 in the light of work progress.the latest development Following this review, D, NAPCO considers that there is a need to retain the TM(1) post to perform a newly enhanced role in monitoring AA’s claims, to continue to monitor the labour and site safety issues, to oversee the provision of various airport systems and to help ensuring that works related to Government departments’ airport readiness programmes are completed in time to support airport opening. TM(1)’s main responsibilities beyond September 1997 are set out in the following paragraphs.

(a) Additional Requirement to monitor AA Claims

In early 1997, the AA Board agreed that Government should step up its monitoring role on claims under construction contracts of the Authority. As a result, NAPCO has to provide support, review and comment on claims and their assessments. and support. The significance and the scale of AA’s contracts are noteworthy. As at the end of March 1997, AA has awarded 48 major contracts at a total value of over $34 billion. The significance and the scale of contracts in question are noteworthy. The number of unresolved claims was over 4 700 with a total claim amount of $3.5 billion. The nature of the contract usually involves extensive interface and programming interactions among contractors. Consequently, many claims are very complicated and carry substantial financial implications. The claim resolution process involves detailed and in-depth analysis of the circumstances and of the quantum by NAPCO, which is a difficult and delicate exercise. Although construction activities of many of the AA key contracts will be wound down by late 1997, experience shows that contractors will submit claims after completion of contracts and that the resolution process usually drags on for some time. Furthermore, where they develop into disputes, parties will invoke the long drawn out disputes resolution mechanism under contract. involve a long settlement process. In view of the complexity and magnitude of these claims, we need very strong technical support from a directorate officer monitor the claims at least until up till the end of June 1998.

(b) Outstanding tasks of TM(1)’s existing functions

  1. ACP Special Labour Importation Scheme

    At present, the number of imported workers remains at around 5 000. Although by end of September 1997, AA and MTRC will only need 21 900 local and imported workers as compared to their actual workforce of 28 653 workers in March 1997, the gradual shift in trade from civil engineering to electrical and mechanical and building services types of work makes recruitment of labour a continuous process. Associated administration work will continue to be substantial until the completion of the second runway in late 1998. These include vetting deeds of undertaking by contractors hiring labour, liaising with various Government departments/branches to effect labour importation, attending to labour importation complaints and press enquiries.

  2. ACP Site Safety Issues

    Although ACP work has reached its peak construction phase and the labour force will be curtailed in the second half of 1997, 21 900 workers will remain in the employ of the AA and the MTRC by September 1997. We will need to continue administering the ACP construction safety measures. The Sub-committee on ACP Construction Safety, under the chairmanship and secretariat services provided by NAPCO, will continue to function until the completion of all ACP works.

(c) Residual responsibilities of the Assistant Director (Technical)

  1. Overseeing the Provision of Airport Systems

    NAPCO needs to oversee and monitor the programme of the provision of provide airport systems.Government departments, AA and the franchisees. They include about Supplied in over 10 system contracts under Government direct supervision of a total cost of $250 million, they include letter mechanisation system in the New Air Mail Centre, X-ray machines, Closed Circuit Televisions, Instrumental Landing System, Very High Frequency/Ultra High Frequency radios and radars for Police, Customs and Excise Department, Immigration Department, Civil Aviation Department etc. In addition, NAPCO also monitors the special systems which AA is installing. They are comprised in 14 contracts for the installation of about 20 systems. Some Government facilities require connections to AA’s Trunk Systems (e.g. the Flight Information System, the Trunk Mobile System) and other franchise buildings. The installations of these

    facilities have been entrusted to AA, Hong Kong Air Cargo Terminal Limited, Asia Airfreight Terminal, Hong Kong Aircraft Engineering Co Ltd, Cathay Pacific and others comprising approximately 70 system items. The TM(1) will take over these monitoring responsibilities in October 1997.

  2. Monitoring Airport Operational Readiness Programmes

    NAPCO plays an important role in ensuring that the airport will be ready for opening as scheduled in all respects. These include physical facilities, human resources, equipment, legislation, procedures, training and certification. As the due date approaches, there will be an increasing need to closely monitor the progress of the AOR programmes of various government departments, AA and their business partners and to ensure timely resolution of all critical AOR issues through the AOR management process (which involves submission of monthly reports and regular review meetings). While AD(C&S) will oversee the non-technical aspects of AOR activities, TM(1) will have to monitor the technical aspects of the AOR programmes which which pertain to the responsibility and authority of a directorate officer.

13. D, NAPCO has considered the alternative of assigning the above work to other directorate professional officers, but has concluded that this is not viable, as they are already fully engaged in managing other ACP projects. For instance, the Project Manager needs to take up the additional onerous responsibility of monitoring the construction of the second runway and associated facilities including the north-west concourse of the passenger terminal building to be completed before the end of 1998. We therefore propose to retain the TM(1) post until 30 June 1998 when the workload begins to diminish.

14. The existing and proposed organisation charts of NAPCO are at Enclosures 1 to 2. The existing and the proposed job descriptions for the AD(CR) (to be retitled AD(C&S)) and the TM(1) posts are at Enclosures 3 to 6.

FINANCIAL IMPLICATIONS

15. The additional notional annual salary cost of this proposal at mid-point is $2,343,600. The full annual average staff cost of the proposal, including salaries and staff on-cost, is $4,242,072. There are no other staffing or financial implications. We have included sufficient provision in the 1997-98 Estimates to meet the cost of this proposal.

BACKGROUND INFORMATION

16. On 8 March 1996, Finance Committee approved, among others, the retention of the supernumerary posts of Deputy Director, NAPCO, AD(CR), AD(T) and TM(1) up to 30 September 1997 to continue to oversee implementation of the ACP projects.

CIVIL SERVICE BRANCH COMMENTS

17. Civil Service Branch recognised the need to retain the posts to resolve all issues essential to the timely construction and commissioning of the new airport at Chek Lap Kok and the Airport Railway, and considers the grading, ranking and duration of the posts to be appropriate, having regard to the responsibilities and professional input required.

ADVICE OF THE STANDING COMMITTEE ON DIRECTORATE SALARIES AND CONDITIONS OF SERVICE

18. As the posts are proposed on a supernumerary basis, their retention, if approved, will be reported to the Standing Committee on Directorate Salaries and Conditions of Service in accordance with the agreed procedure.

Works Branch
May 1997
(E5876/WIN107)

Enclosure 3 to EC(97-98)16

Existing Job Description for Assistant Director (Community Relations) New Airport Projects Co-ordination Office

Rank : Administrative Officer Staff Grade C (D2)

Main Duties and Responsibilities

Responsible to the Deputy Director, NAPCO for -

  1. formulating policies on liaison with the community to cater for changing circumstances as the ACP works progress;

  2. co-ordinating with government departments and authorities concerned to ensure prompt settlement of issues arising from ACP project implementation;

  3. updating both the local and international communities on ACP developments in Hong Kong;

  4. formulating and implementing community involvement programmes for the ACP projects;

  5. co-ordinating government input to LegCo, relevant government advisory bodies and local organisations on ACP issues attracting public concern;

  6. arranging briefings and seminars for LegCo, overseas visitors, community leaders and VIPs to ensure that they are kept informed of progress on the ACP infrastructure development;

  7. preparing ACP progress reports for LegCo and Airport Consultative Committee and draft response for LegCo questions; and

  8. overseeing the work of the Community Relations Division.

Enclosure 4 to EC(97-98)16

Proposed Job Description for Assistant Director (Community and Support) New Airport Projects Co-ordination Office

Rank : Administrative Officer Staff Grade C (D2)

Main Duties and Responsibilities

Responsible to the Director, NAPCO for -

  1. assisting the Director in planning and implementing public relations and community involvement programmes, including liaising with the key constituencies and sectors both local and overseas, and enhancing the flow of information through briefings and exhibitions with a view to keeping the community at large up to date on the development of the Airport Core Programme (ACP);

  2. assisting the Director in overseeing and co-ordinating the overall programme and progress of the new airport and airport-related projects, giving any necessary guidance to achieve timely completion;

  3. briefing for prominent visitors on the ACP and conducting site visits with them;

  4. co-ordinating with Governments and authorities concerned to ensure prompt settlement of issues arising from the implementation of the new airport and airport railway and co-ordinating Government responses to LegCo and other authorities concerned on these issues;

  5. preparing ACP progress reports for LegCo and Airport Consultative Committee and draft responses for LegCo questions;

  6. planning and overseeing the work of the Community Relations Sub-Division, the Media Relations Sub-Division and the Administration Sub-Division; and

  7. co-ordinating inputs from Government departments and serving as one of the key liaison points in NAPCO with the AA on issues in relation to airport opening e.g. Airport Operational Readiness and public events to mark airport opening.

Enclosure 5 to EC(97-98)16

Existing Job Description for Technical Manager (1) New Airport Projects Co-ordination Office

Rank : Chief Engineer (D1)

Main Duties and Responsibilities

Responsible to the Assistant Director (Technical), NAPCO for -

  1. assisting in the management of the Project Management Consultancy;

  2. developing, implementing and administering the Owner Controlled Insurance Programme including administering its own consultancy and processing insurance policy placement arrangements;

  3. dealing with Quality Assurance policy matters;

  4. administering and co-ordinating with other Government bodies on the ACP Special Scheme for the Importation of Labour;

  5. dealing with ACP construction support issue as they arises;

  6. administering the Lok On Pai transhipment centre agreement with AA;

  7. representing NAPCO in meetings on port-related issues affecting the ACP; and

  8. overseeing all ACP site safety policy matters.

Enclosure 6 to EC(97-98)16

Proposed Job Description for Technical Manager (1) New Airport Projects Co-ordination Office

Rank : Chief Engineer (D1)

Main Duties and Responsibilities

Responsible to the Project Manager, NAPCO for -

  1. assisting in the management of the Project Management Consultancy;

  2. developing, implementing and administering the Owner Controlled Insurance Programme including administering its own consultancy and processing insurance policy placement arrangements;

  3. dealing with Quality Assurance policy matters;

  4. administering and co-ordinating with other Government bodies on the ACP Special Scheme for the Importation of Labour;

  5. dealing with ACP construction support issue as they arises;

  6. administering the Lok On Pai transhipment centre agreement with AA;

  7. representing NAPCO in meetings on port-related issues affecting the ACP;

  8. overseeing all ACP site safety policy matters; and

  9. providing technical support in monitoring claims on AA contracts; and

  10. monitoring Airport Operational Readiness programmes; and maintaining and co-ordinating the installation, testing and commissioning of airport systems to ensure their timely completion.
(E5876/WIN107)

Last Updated on 12 August 1999