For discussion PWSC(96-97)101
on 19 February 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories West Development
Water Supplies - Fresh water supplies
200WF - Tsing Yi development - water supply, stage IV

Members are invited to recommend to Finance Committee the upgrading of 200WF to Category A at an estimated cost of $131.1 million in money-of-the-day prices.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
200WF - Tsing Yi development - water supply, stage IV

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PROBLEM

We forecast that by the end of 1998, the capacity of the existing freshreservoirs and water supply system on Tsing Yi Island will be inadequate to cope with the increasing demand for fresh water due to anticipated new developments¹ on the Island.

PROPOSAL

2. The Director of Territory Development (DTD), with the agreement of the Director of Water Supplies (DWS) and the support of the Secretary for Works, proposes to upgrade 200WF to Category A at an estimated cost of $131.1 million in money-of-the-day (MOD) prices for the construction of a service reservoir and associated water mains on Tsing Yi Island.

PROJECT SCOPE AND NATURE

3. The scope of 200WF comprises -

1. the construction of a fresh water service reservoir with a storage capacity of 16 000 cubic metres² ; and
2. the laying of approximately 1 700 metres of fresh water mains ranging from 400 millimetres to 600 millimetres in diameter.

JUSTIFICATION

4. The demand for fresh water on Tsing Yi Island has been increasing rapidly in recent years. We anticipate that this trend will continue because of further developments, particularly the proposed Container Terminal No. 9, which will overload the existing fresh water supply installations.

5. DWS envisages that the daily fresh water demand of Tsing Yi Island will increase from the current figure of 59 000 cubic metres to 71 000 cubic metres by 1999 and then to 87 000 cubic metres upon full development of the Island beyond 2004. The Island is now served by four service reservoirs and a network of water mains which can cope with a demand of 69 000 cubic metres per day. Thewill be a shortfall in fresh water supply will be 2 000 cubic metres per day by 1999, and increasing to 18 000 cubic metres per day by 2004.

6. To meet the demand up to 2004, we plan to construct the proposed service reservoir and water mains to increase the capacity of the fresh water supply system on Tsing Yi Island. We will not be able to maintain a normal water supply to all consumers on the Island by 1999 without the proposed installations. The development of the proposed Container Terminal No. 9 will also be adversely affected if the demand for fresh water cannot be met. Thus, we need to start the proposed works in July 1997 in order to complete the works in December 1998 to meet the fresh water demands generated by the anticipated developments.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $131.1 million in MOD prices (see paragraph 8 below), made up as follows -

A breakdown by man months of the estimates for consultants’ 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 1997 to 2001. We will tender the proposed works under a lump sum contract because we have firm quantities for the majority of the works.

10. We estimate the annually recurrent expenditure for the project to be $258,000.

11. This project by itself will lead to an increase in water charges by a maximum of 0.1% in real terms by 1999³ .

PUBLIC CONSULTATION

12. We consulted the Environment and Planning Committee of the Kwai Tsing District Board on the proposed works on 17 October 1996. The Committee supported the proposal.

ENVIRONMENTAL IMPLICATIONS

13. The Director of Environmental Protection conducted an Environmental Review in April 1993. Because of the location and nature of this project, it was envisaged that there would be limited potential for adverse impacts on the environment associated with the operation of the service reservoir. Therefore, an Environmental Impact Assessment was not necessary. For the proper disposal of washwater arising from the cleaning of the service reservoir during operation, we have commissioned a Feasibility Study on Cleaning and Disinfection of Service Reservoirs and Disposal of the Effluent which is expected to be completed in early 1997. We will implement those recommended mitigation measures adopted by the Administration. For short term impacts, we will control noise, dust and site run-off during construction by implementing mitigation measures to be included in the works contract.

LAND ACQUISITION

14. The project does not require land resumption. However, the Director of Lands will clear 30 000 square metres of Government land. We will charge the cost of clearance, estimated at $500,000 to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

15. We upgraded 7018WC "Tsing Yi development - water supply, stage I" to Category A in 1974 at an Approved Project Estimate (APE) of $17.33 million which was revised to $20.64 million in January 1983. The scope of this item includes construction of Tsing Yi East fresh and salt water service reservoirs, Tsing Yi salt water pumping station, associated water mains on Tsing Yi Island and consultants’ fees and resident site staff expenses. The works under the project were completed in 1982.

16. We upgraded 7020WC "Tsing Yi development - water supply, stage II" to Category A in 1978 at an APE of $15.2 million which was revised to $23.8 million in September 1988. The scope of this item includes construction of extensions of both the Tsing Yi East fresh and salt water service reservoirs, Tsing Yi South fresh water service reservoir, four operational staff quarters inside the compound of the Tsing Yi salt water pumping station, associated water mains on Tsing Yi Island and associated consultants’ fees and resident site staff expenses. The works under the project were completed in 1985.

17. We upgraded 7030WC "Tsing Yi development - water supply, stage III" to Category A in May 1984 at an APE of $55 million. The scope of this item includes construction of Tsing Yi North low level fresh and salt water service reservoirs, Tsing Yi North high level fresh water and salt water service reservoirs, uprating of the Tsing Yi salt water pumping station, and associated water mains on Tsing Yi Island. The works under the project were completed in 1990.

18. We upgraded 200WF to Category B in July 1994. We have engaged consultants to carry out site investigation and detailed design for the proposed works and charged the cost of $7.48 million to block allocation Subhead 7100CX "New towns and urban area works, studies and investigations for items in Category D of the Public Works Programme". The consultants have completed the detailed design and drawings. We plan to start the proposed works in July 1997 for completion in December 1998.

(LL192)

1 -- The anitcipated new developments include the proposed Container Terminal No. 9 and residential and industrial developments.
2 -- A service reservoir with a storage capacity of 16000 cubic metres has the functional capability to cope with the water demand of 18000 cubic meters per day.
3 -- The waer charges are calculated on the assumption that the demand remains static during the period from 1996 to 1999 and that the amount of Government subsidy to the waterworks operations is to be contained at the present level.

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Enclosure to PWSC(96-97)101

200WF - Tsing Yi development - water supply, stage IV

Breakdown of estimates for consultants’ fees

Notes

1. The consultants’ fees for work in the construction stage is a provisional part of the lump sum price quoted in the consultancy Agreement No. CE 7/96 - "Tsing Yi Development Water Supply Stage IV and Salt Water Supply System for Pokfulam Area - Design and Construction" which is available for acceptance by Government subject to approval being received for upgrading 200WF to Category A.

2. 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. A multiplier factor of 2.1 is applied to the average MPS point in the case of site staff supplied by the consultants. [(At 1.4.95, MPS pt. 40 = $51,440 p.m. and MPS pt. 16 = $17,270 p.m.)]

3. The figures for the resident site staff given above are based on estimates prepared by the Director of Water Supplies. We will only know the actual man months and actual fees when we have appointed the resident site staff.

(LL192)

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