LegCo Paper No. PWSC 42/96-97
(These minutes have been seen by the Administration)
Ref : CB1/F/2/2

Public Works Subcommittee

Minutes of the proceedings of the meeting held on Wednesday, 22 January 1997
at 10:45 am in the Conference Room A

Members present :

Members absent :

Public officers attending :

Mrs Carrie LAM: Deputy Secretary for the Treasury (3)
Mr Bowen LEUNG, JP: Secretary for Planning, Environment and Lands
Mr H S KWONG, JP: Secretary for Works
Mr Mike STOKOE: Director of Environmental Protection
Mr James HERD: Principal Assistant Secretary for the Treasury (Works)
Mr Frank PHILIPS: Chief Estate Surveyor/Acquisition of Lands Department
Mr Bernard LAM, JP: Director of Civil Engineering
Mr W L WONG: Deputy Director of Highways
Mr S S LEE, JP: Director of Territory Development
Mr M S HU, JP: Director of Water Supplies
Mr S H PAU, JP: Deputy Director of Architectural Services
Mr F P WONG, JP: Deputy Government Property Administrator
Mr John COLLIER, JP: Director of Drainage Services
Mr M C TANG: Government Geotechnical Engineering/Landslip Preventive Measures
Mr C D B WILLIAMS, JP: Assistant Director of Home Affairs (2)
Mr N J FRENCH, JP: Secretary-General of University Grants Committee
Dr FUNG Hong: Deputy Director of Hospital Authority (Hospital Planning & Development)
Mr Clement CHEUNG: Principal Assistant Secretary for Health & Welfare (Medical)2
Mr Ros LAM: Principal Assistant Secretary for Education & Manpower (2)
Mr Herman CHO: Principal Assistant Secretary for Education & Manpower (7)
Mr POON Chung-sing: Principal Education Officer/Kowloon
Mr Paul WONG: Assistant Director of Social Welfare (Subventions)
Mrs Teresa LOK, JP: Assistant Director of Information Technology Services (Management Consultancy Services)
Mr Frank LOONG: Principal Assistant Secretary for Housing (Project Management)
Mr Y M LEE: Chief Engineer/NT West of Transport Department
Ms Michelle LI: Principal Assistant Secretary for Education & Manpower (1)

Clerk in attendance:

Mrs Constance LI: Chief Assistant Secretary (Finance Committee)

Staff in attendance:

Mr Andy LAU: Senior Assistant Secretary (Finance Committee)

NON-AIRPORT CORE PROGRAMME
CAPITAL WORKS RESERVE FUND

PWSC(96-97)95	Block allocations for -
	HEAD 701 - LAND ACQUISITION
	HEAD 702 - PORT AND AIRPORT DEVELOPMENT
	HEAD 703 - BUILDINGS
	HEAD 704 - DRAINAGE
	HEAD 705 - CIVIL ENGINEERING
	HEAD 706 - HIGHWAYS
	HEAD 707 -NEW TOWNS AND URBAN AREA DEVELOPMENT
	HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
	HEAD 709 - WATERWORKS
	HEAD 710 - COMPUTERISATION
	HEAD 711 - HOUSING

Members noted that the Administration had proposed a rather substantial increase in the block allocations for 1997-98 which represented an overall increase of 21.9 % over that of 1996-97. The Deputy Secretary for the Treasury (DS/Tsy) advised that the proposed overall increase for 1997-98 was higher than the forecast economic trend growth in the Medium Range Forecast which assumed an increase of 5% in real terms or about 12% in dollar terms taking into account price increases in the works sector in the past year. She explained that this higher growth in forecast expenditure under the block allocations took into account the actual requirements as reflected in the departmental returns and the capacity of works departments to undertake such projects. For example, in the present proposal, some individual heads such as civil engineering (Head 705) and housing (Head 711) would incur a much higher annual expenditure than the other heads, for reasons mentioned in the paper. Having evaluated the capacity of the works departments concerned and the spending level (up to 96% of the original estimates) of the block allocations in 1996-97, the Administration was confident that the proposed allocations for 1997-98 could be put to maximum use.

2. With regard to the proposed reduction in allocations under Heads 704, 706 and 707, the Administration gave the following explanations:

Head 704 - Drainage
The decrease was due to a projected reduction in the level of expenditure on consultancy studies in 1997-98. This would have no impact on the delivery of the planned drainage projects.
Head 706 - Highways
A lower expenditure level was anticipated as a result of lower tender prices for departmental projects.
Head 707 - New Towns and Urban Area Development
The 21% decrease under subhead 7100CX for New Towns and urban area works, studies and investigations was mainly due to the delay in preparation of land resumption plans, deferral of projects and lower tender prices.

Admin

3. A member urged the Administration to make sufficient provisions under Head 705 for landslip preventive measures for schools affected by dangerous slopes. In reply, the Administration confirmed that the provision of $779 million under Subhead 5001BX included funds for slope safety inspections for Government schools. Provision had also been made under Subhead 8100QX for slope safety inspections at aided schools. In response to a members query, the Administration undertook to provide further information on the consultancy studies and works planned for those slopes affecting government schools.

4. In response to a member, DS/Tsy explained that the annual block allocations covered minor works projects in the Public Works Programme costing no more than $15 million. The Finance Committee had delegated to the Secretary for the Treasury the power to approve expenditure on individual projects within the overall provision and the scope approved for each block allocation. However, this $15 million ceiling did not apply to spending under several block allocations. Spending on land acquisition was not subject to a financial ceiling per project but was controlled in terms of rates of compensation and ex gratia allowances. Individual items under Subhead 5100BX for landslip preventive works were also not subject to the ceiling of $15 million in view of the urgent nature of the works. As for Head 710 - Computerisation, any proposal exceeding $10 million would require the approval of the Finance Committee.

5. Members also noted that a full list of the projects proposed for inclusion under the block allocations in 1997-98 would be deposited with the Clerk for members reference.

6. The item was voted on and endorsed.

Revision in scope/approved estimate of projects in Category A

HEAD 705 - CIVIL ENGINEERING

PWSC(96-97)92

229CL

Diamond Hill development, works, stage 1

7. A member enquired about the long time taken by the Government to submit the proposal to the Subcommittee since the site formation works had been completed in 1993. In response, the Director of Civil Engineering (DCE) advised that the proposal was to enable the payment of $18 million for additional site formation works under this project. He explained that the Diamond Hill Area B site formation works were originally undertaken by means of a revenue-earning contract rather than a conventional site formation works contract. Under the arrangement, the contractor would pay a monthly royalty to Government for the right to sell any saleable rock or stone quarried during the course of the site formation works. However, at a later stage of the works, the Tates Cairn Tunnel franchisee and the Government had decided to re-locate the south entry portal which resulted in an extension to the boundary of the project and therefore extra excavation works. On the assumption that the ground conditions of the additional works area would be similar to the original area, the contractor was instructed to undertake the additional excavation works under the same contract. The works were completed in October 1993. However, in the event, the amount of saleable material quarried from the additional works area was far less than that in the original site. The contractor therefore made a claim of some $36 million for the additional excavation works. After lengthy negotiation with the contractor, an amount of $18 million for compensation for the additional works had been agreed. As there was no provision in the existing quarrying contract to pay out compensation to the contractor, the Government proposed to expand the scope of the related project 229CL so that payment could be made from this project vote to settle the claims.

Admin

8. In reply to a member, DCE confirmed that there were compensation clauses in the existing contract for Area B. However, the contract had not made provisions for the project engineer to pay compensation directly from the amount of revenue collected under the contract. In the light of experience, the Government would in future include suitable provisions in revenue-earning contracts to allow for transfer of funds from the royalty account to cover additional payments due to changes in the amount of saleable rock or stone quarried under site formation works projects. At the request of some members, DCE undertook to provide information on the amount of royalty received from the contractor for the site formation works at Area B.

9. As regards whether the tunnel franchisee had any liability in the subsequent re-location decision, the Secretary for Works (S for W) advised that while the relocation was a joint decision of the franchisee and the Government, the additional excavation works were technically a Government decision to maximize the usable area for the Diamond Hill development project. He further advised that the claims of $18 million were in fact lower than the market price for carrying out similar works under a conventional site formation works contract.

10. The item was voted on and endorsed.

Upgrading of projects to Category A

HEAD 706 - HIGHWAYS

PWSC(96-97)94

15TC

Improvement to directional signs on expressways

11. While members were generally in support of the need to improve directional signs on expressways, they expressed serious concern about the design and locations of such directional signs. They took the view that the present signs were too small to be visible especially to motorists driving in the fast lane, and the information on such signs was often inadequate or ambiguous. Moreover, the locations of these signs were too close to road junctions and the motorists did not have sufficient time to change their lanes where necessary. For the safety and convenience of motorists, they urged the Government to improve the visibility and adequacy of such directional signs with reference to similar systems in other countries.

12. In reply, the Chief Engineer of Transport Department advised that the present system basically followed international standards. In addition to the confirmation signs, advance warning signs were erected some 500 metres and 1000 metres ahead of the various exits on expressways. S for W added that, in considering the locations of directional signs, the Government had to consider technical factors such as site constraints and the spacing of the various exit points as the distances between interchanges in Hong Kong were much shorter than those in foreign countries. Moreover, the requirement for bilingual information had implications for the dimensions of gantry signs as well as their foundations and structure. Although enlarging the road reserve might facilitate installation of larger gantry signs, this option was not considered to be cost-effective in view of the higher project costs.

13. To reduce disruption to traffic, the Deputy Director of Highways (DD/Hy) advised that installation works would normally be carried out during night time, and traffic arrangements would be made in consultation with the Police and the Transport Department. The District Boards concerned would also be alerted in advance.

14. Responding to members questions, DD/Hy advised that improvements had already been made to some of the directional signs on Tuen Mun Road. The required expenditure had been absorbed within the project votes concerned.

xx	15. In view of members concern about the improvements to directional signs on expressways, the Chairman suggested that the subject should be further discussed by the LegCo Panel on Transport.

16. The item was voted on and endorsed.

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT

PWSC(96-97)93

477CL

Feasibility study for Pak Shek Kok development area

17. In response to a member, the Director of Territory Development (DTD) advised that the proposed Pak Shek Kok development area was initially designated as a public dumping area for the north-eastern New Territories. Reclamation of the site would have to be phased having regard to the limited supply of construction waste and the timetable for land supply. In reply to a member, the Secretary for Planning, Environment and Lands (SPEL) confirmed that there was at present no intention to extend the existing boundary of the reclamation. DTD also confirmed that according to an environmental assessment study by the Civil Engineering Department, the public dump would not have any adverse impact on the environment.

18. With regard to the future land use of the site, SPEL advised that it was unlikely that the site would be used for high density residential development due to transport constraints. The preliminary plan for the land would include the Science Park and sites for the expanding tertiary educational institutions, and low density residential and hotel developments. DTD added that the proposed consultancy study would include a detailed feasibility study and an environmental impact assessment on the future land use.

19. Replying to a member, DTD advised that the proposed Science Park would fall within the boundary of stage I of the reclamation which had already started. It was envisaged that the site would be available for use in 1998. SPEL further confirmed that all statutory procedures under the Foreshore and Seabed (Reclamations) Ordinance had been completed. The Town Planning Board had also been briefed on the likely development of the area in the context of the North East New Territories Study.

20. The item was voted on and endorsed.

New commitments/Changes in commitments for subvented projects

HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT

PWSC(96-97)96

26MM

Redevelopment of out-patient department and pupil hostel at the Our Lady Maryknoll Hospital

21. Noting that the usual 20% contribution rule would be waived for this project, a member asked about the criteria for allowing a lower contribution by subvented organisations in similar projects. In reply, the Principal Assistant Secretary for Health & Welfare advised that while the normal 20% rule would be adhered to as far as possible, some flexibility was allowed to provide incentives for former subvented hospitals to initiate redevelopment or expansion works to improve their facilities and environment. The Government would consider each case on its own merits, having regard to the conditions of the building, the size and costs of the project, and the fund-raising capabilities of the subvented organisation concerned. In the present proposal, the Government noted that the 35-year-old building was in need of substantial repairs, and had therefore agreed, on the recommendations of the Hospital Authority, to allow a lower percentage of contribution by Our Lady of Maryknoll Hospital Board towards the capital cost of this project.

Admin

22. With regard to the environmental implications of the proposed works, the Deputy Director of the Hospital Authority undertook to provide further information on the arrangements to minimize the construction impacts on nearby residents.

23. The item was voted on and endorsed.

PWSC(96-97)97	Universities -

	The Hong Kong Polytechnic University

	New item	Phase VI consequential work

	8022EK	Phase VI development

	The Chinese University of Hong Kong

	New item	Major renovation to the Basic Medical Science Building

	New item	Major renovation to selected engineering and building services of the University Science Centre Complex

	8032EF	Student hostels

	8033EF	Extension to Madam S H Ho Hostel at Prince of Wales Hospital

	The University of Hong Kong

	8045EG	Development of Faculty of Medicine at the existing site of Northcote Campus of the Hong Kong Institute of Education

	8046EG	Additional 300-place hall of residence

24. Responding to a members question on whether the proposed facilities could be fully utilised, the Secretary-General, University Grants Committee (UGC) advised that all the projects had been carefully examined by the UGC having regard to the research and teaching targets, and the student population, of each institution. The proposed hostel facilities were also in line with the revised policy on the provision of publicly-funded student hostels for UGC-funded institutions. The UGC Secretariat, with the assistance of the Architectural Services Department, would monitor the construction of the projects through the release of the capital grants. Thereafter the utilization of the facilities would be monitored by the UGC through triennial space utilization surveys.

Admin

25. In reply to a member, the Principal Assistant Secretary for Education and Manpower undertook to provide a note on the individual projects to the LegCo Panel on Education.

26. The item was voted on and endorsed.

Other Business

PWSC(96-97)91

PWSC Procedures

27. The Chairman advised that the Public Works Subcommittee (PWSC) could determine its own practices and procedures subject to the provisions of the Standing Orders and the endorsement of the Finance Committee (FC).

28. Regarding the adjournment of proceedings, the Chairman advised that the FC had discussed the implications of applying SO 30(1) or SO 30(4) when the proposed changes to the FC Procedures were discussed at a meeting on 29 November 1996. In order to make the PWSC Procedures consistent with the FC Procedures, it was proposed that the PWSC Chairman would also use his discretion to apply SO 30, including SO 30(1), in PWSC proceedings. Subject to members agreement, paragraph 30 of the PWSC Procedures would be revised to this effect.

29. The revised Procedures together with the proposed amendment to paragraph 30 of the Procedures were put to vote and endorsed.

30. The Committee was adjourned at 12:10 pm.

Legislative Council Secretariat
12 February 1997

Last Updated on 16 August 1999

Public Works Subcommittee

Minutes of the proceedings of the meeting held on Wednesday, 22 January 1997 at 10:45 am in the Conference Room A

Minutes of the proceedings of the meeting held on Wednesday, 22 January 1997
at 10:45 am in the Conference Room A