For discussion
on 4 June 1997
PWSC(97-98)39

ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories North Development
Civil Engineering - Land development
222CL - Yuen Long - Tuen Mun corridor : engineering works for new residential areas at Hung Shui Kiu and San Hing Tsuen

    Members are invited to recommend to Finance Committee -

  1. the upgrading of part of 222CL, entitled "Yuen Long - Tuen Mun corridor : site formation works for areas 12 (part) and 13 in Hung Shui Kiu", to Category A at an estimated cost of $32.4 million in money-of-the-day prices; and

  2. the retention of the remainder of 222CL, retitled "Yuen Long - Tuen Mun corridor : site formation works for areas 10 and 11 in Hung Shui Kiu", in Category B.

PROBLEM

We need to carry out site formation works in Hung Shui Kiu (HSK) to provide land for its development as a district centre and to meet the local housing demand.

PROPOSAL

2. The Director of Territory Development, with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 222CL to Category A at an estimated cost of $32.4 million in money-of-the-day (MOD) prices for carrying out site formation works in areas 12 (part) and 13 of HSK.

PROJECT SCOPE AND NATURE

3. The full scope of 222CL is to form about 10.4 hectares of land in HSK. The works comprise land formation and the associated drainage works in -

  1. area 10 for open space;

  2. area 11 for private residential development;

  3. area 12 (part) for comprehensive development; and

  4. area 13 for public housing development.

4. The part of the project we now propose to upgrade to Category A comprises formation of 7.7 hectares of land and construction of the associated drainage works in areas 12 (part) and 13 in HSK (as described in paragraphs 3(c) and 3(d) above).

5. The remainder of 222CL comprises formation of about 2.7 hectares of land and construction of the associated drainage works in areas 10 and 11 in HSK (as described in paragraphs 3(a) and 3(b) above).

JUSTIFICATION

6. In April 1994, the Director of Planning (D of Plan) completed a North West New Territories (Yuen Long District) Development Statements Study (NWNT DSS) which covered three areas, namely -

  1. Yuen Long Plain;

  2. Mai Po; and

  3. Ngau Tam Mei, Kam Tin and Shek Kong.

In May 1994, the Administration endorsed the final report of the Yuen Long Plain Development Statement (YLPDS) as part of the NWNT DSS. The YLPDS recommended that HSK should be developed into a district centre with a mixture of development for commercial, residential, institutional and community uses. The proposed developments in HSK will also help meet the housing demand in the area. D of Plan has earmarked areas 10, 11, 12 and 13 for open space, private residential, comprehensive and public housing developments respectively in the Hung Shui Kiu layout plan. As part of area 12 ( part (a) ) is now occupied by Kowloon-Canton Railway Corporation (KCRC) for Light Railway Transit (LRT) facilities under a short term tenancy, only the remaining part of area 12 ( part (b) ) is under the scope of 222CL.

7. KCRC will undertake the proposed comprehensive development in part (b) of area 12. The proposed development includes the construction of an LRT interchange and a new stabling depot with commercial as well as residential buildings which can accommodate a population of 6 400 people. KCRC plans to commence the proposed development by late 1999 for completion by end 2002 to serve the existing and new developments in HSK. The Hong Kong Housing Society (HKHS) plans to commence the public housing project in area 13 in September 1999 for completion by end 2002 to accommodate a population of about 12 000 people. To tie in with these development programmes, we need to start the proposed site formation works in December 1997 for completion in August 1999.

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the project to be $32.4 million in MOD prices (see paragraph 9 below), made up as follows -


$ million

(a) Earthworks

21.6


(b) Drainage works

2.9


(c) Contingencies

2.5





Sub-total

27.0

(at December
1996 prices)

(d) Inflation allowance

5.4


Total

32.4

(in MOD prices)

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

Year

$ million
(Dec 1996)

Price adjustment factor

$ million
(MOD)

1997 - 98

3.2

1.06750

3.4

1998 - 99

13.0

1.16358

15.1

1999 - 2000

8.6

1.26830

10.9

2000 - 01

2.2
_____

1.38244

3.0
_____


27.0
_____


32.4
_____

10. We have derived the MOD estimate on the basis of the Government’s forecast of trend labour and construction prices for the period 1997 to 2001. We will tender the works under a fixed-price lump sum contract because we have firm quantities for the majority of the works. The contract will not provide for inflation adjustments as the contract period will not exceed 21 months.

11. The project has no recurrent financial implications. We will hand over the sites to HKHS and KCRC for subsequent developments upon completion of the site formation works.

PUBLIC CONSULTATION

12. We consulted the Ping Shan and Ha Tsuen Rural Committees on 2 December 1996 and 3 December 1996 respectively. Both Rural Committees had no adverse comments on the proposed works, but had reservations on high-rise developments in the area. We briefed the Yuen Long District Board on 24 October 1996, 19 December 1996 and 27 February 1997. The District Board members had no adverse comments on the proposed site formation works, but shared the concerns of the affected local residents on compensation and clearance matters.

13. On 14 April 1997, we met the affected residents and land owners who were concerned with the rate of compensation and the rehousing arrangement resulting from the resumption of the private land for the project under the Crown Lands Resumption Ordinance. We shall continue to liaise with the affected persons to provide assistance in resolving problems they may face in the resumption process.

ENVIRONMENTAL IMPLICATIONS

14. The Director of Environmental Protection completed an Environmental Review in October 1994 and concluded that the proposed works would have no long term impact on the environment. No Environmental Impact Assessment is therefore necessary. We will set out in the works contract the requirement of implementing mitigation measures during the construction period to control dust, noise and site run-off nuisances to within the established standards and guidelines.

LAND ACQUISITION

15. We will resume about 6.8 hectares of private land. The land resumption will affect 150 households involving about 500 people. The Director of Housing will offer to rehouse these families to public housing in accordance with the existing policy. We will charge the cost of land acquisition and clearance estimated at $276 million to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

16. We upgraded 222CL for the site formation works in areas 10, 11, 12 (part) and 13 in HSK to Category B in July 1994 after deleting those ill-defined site formation works for San Hing Tsuen from the original scope of the item. We will carry out a preliminary project feasibility study to better define the scope, programme and cost of the proposed works in San Hing Tsuen for the Administration’s consideration of including the works in the public works programme as a separate item.

17. The Director of Civil Engineering has completed the detailed design and drawings for the proposed works using in-house resources. We plan to start the works in December 1997 for completion in August 1999.

18. We intend to seek the Executive Council’s approval of the land resumption for this project under the Crown Lands Resumption Ordinance in July 1997 and start the works in December 1997. We normally seek funding approval when the project is ready in all respects to proceed, including the authorisation of land resumption and works. In this case, we request Members’ approval of this item ahead of the approval of the land resumption in view of the desirability of making the land available for housing development as early as possible and the fact that this being the last PWSC meeting in the current session. However, we will not proceed with the project nor incur expenditure until the land resumption has been authorised.

19. We plan to implement the remainder of 222CL in September 2000 for completion in March 2002. Areas 10, 11, 12 and 13 of HSK are to be served by Hung Tin Road, Roads D2, L1 and L2. We completed Hung Tin Road under 20CG and 308TH in July 1995. Subject to funding, we will construct Roads D2, L1 and L2 under 225CL and 253CL commencing in September 1998 for completion in April 2000.

Planning, Environment and Lands Branch
May 1997
(222CL.doc)

Last Updated on 16 August 1999