For discussion PWSC(97-98)43
on 4 June 1997
ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Medical Subventions
8002MG - Ruttonjee Hospital - air-conditioning
Members are invited to recommend to Finance Committee the approval of a commitment of $25.18 million in money-of-the-day prices for the installation of a central air-conditioning system at the Ruttonjee Hospital.
PROBLEM
Most of the wards and common areas of the Ruttonjee Hospital (RH) are not air-conditioned.
PROPOSAL
2. The Hospital Authority (HA), supported by the Secretary for Health and Welfare, proposes to create a commitment of $25.18 million in money-of-the-day (MOD) prices for installing air-conditioning for the wards and general circulation areas at RH.
PROJECT SCOPE AND NATURE
3. The scope of the project comprises the following -
- installation of a central air-conditioning system at the main hospital building to provide air-conditioning to these areas -
|
3/F to 10/F :
|
all ward areas, corridors, waiting halls, lift lobbies (except plant rooms and fire escape staircases); |
|
LG/1 to LG/3:
|
lift lobbies and corridors; and |
- the construction of a new power supply system, an additional transformer room and a switch room for the new air-conditioning system.
JUSTIFICATION
4. Given the high humidity and hot weather of Hong Kong, the provision of air-conditioning will greatly enhance patient comfort. It has been taken as a standard facility in the delivery of modern patient care. However, only limited areas of the main hospital building of RH, including the mortuary, the whole G/F and 1/F and the general offices are air-conditioned. This project aims to equip the whole hospital building except plant rooms, workshops, kitchen and fire escape staircases, with air-conditioning. Upon completion, all wards and patient common areas of RH will be provided with air-conditioning.
5. We have also examined the alternative of extending the existing air-conditioning system to cover all other patient areas. However, the proposal is not feasible owing to the limited handling capacity of the existing air-conditioning system. Therefore, the installation of a new central air-conditioning system with the retention of the existing one for the present air-conditioned areas is considered the most cost-effective option.
FINANCIAL IMPLICATIONS
6. The Director of Architectural Services (D Arch S) and HA estimate the total project cost to be $35.97 million in MOD prices, made up as follows -
|
$ million
|
|
|---|
|
(a) Building
|
5.63
|
|
|
(b) Building Services
|
20.98
|
|
|
(c) Preliminaries
|
0.71
|
|
|
(d) Consultants fees
|
2.23
|
|
|
(e) Contingencies
|
2.62
_____
|
|
Sub-total
|
32.17
|
(at December
1996 prices) |
|
(f) Inflation allowance
|
3.80
_____
|
|
|
Total
|
35.97
_____
|
(in MOD prices) |
A breakdown of the cost estimates for consultants fees is at the Enclosure.
7. The Hong Kong Tuberculosis, Chest and Heart Diseases Association (the Association) has undertaken to contribute a total of $10.79 million in MOD prices towards the installation of the central air-conditioning system, representing about 30% of the total project cost. We therefore propose a commitment of $25.18 million in MOD prices, calculated as follows -
| $ million
|
|---|
| (a) Total capital cost | 35.97
|
(b) Contribution from the Hong Kong
Tuberculosis, Chest and Heart
Diseases Association | (10.79)
|
| ______
|
| Commitment sought | 25.18
______
|
8. Subject to Members approval, we will phase the expenditure as follows -
|
|
$million
(Dec 96)
|
|
|
|
$million
(MOD)
|
|
|---|
|
Year
|
Government
|
The Association
|
Total
|
Price
adjustment
factor
|
Government
|
The Association
|
Total
|
|---|
|
1997-98
|
11.09
|
4.76
|
15.85
|
1.0675
|
11.84
|
5.08
|
16.92
|
|
1998-99
|
11.07
|
4.74
|
15.81
|
1.16358
|
12.88
|
5.52
|
18.40
|
|
1999-00
|
0.36
|
0.15
|
0.51
|
1.2683
|
0.46
|
0.19
|
0.65
|
|
Total
|
22.52
|
9.65
|
32.17
|
|
25.18
|
10.79
|
35.97
|
9. We have derived the MOD estimates on the basis of the Governments forecast of trend labour and construction prices for the period from 1997 to 1999. HA will tender the works under a fixed-price lump-sum contract. Subject to Members approval, HA plans to start work in September 1997 for completion in January 1999.
10. The additional annually recurrent expenditure is estimated to be $3.83 million at December 1996 prices.
ENVIRONMENTAL IMPLICATIONS
11. The consultants engaged by HA completed a Preliminary Environmental Review (PER) of this project in January 1996 and concluded that the project would have limited potential to cause adverse effects to the existing environment. The Director of Environmental Protection vetted the PER and agreed that an Environmental Impact Assessment would not be necessary. HA will control noise, dust and site run-off to within established standards and guidelines through the implementation of appropriate mitigation measures in the contract.
PUBLIC CONSULTATION
12. As this project involves mainly building services improvement work to be carried out within the boundaries of RH, we consider that public consultation is not necessary.
LAND ACQUISITION
13. This project does not require land acquisition.
BACKGROUND INFORMATION
14. On 8 December 1982, the Finance Committee (FC) approved a total of $126.544 million for the redevelopment of the old Ruttonjee Sanitarium into a general acute hospital of 432 hospital beds and 50 geriatric day places. On 13 December 1986, the FC approved an expansion of the project scope and an increase in commitment from $126.544 million by $70.368 million to $196.912 million to provide an additional 24 general beds and 152 infirmary beds, a six-bed intensive care unit and an electromedical diagnostic unit.
15. The redevelopment project was completed in mid-1993. RH now has about 600 beds, providing different specialty services which include medicine, respiratory medicine and surgery. Comprehensive geriatric care is also provided through its day hospital, a specialist clinic and infirmary beds.
May 1997
Health and Welfare Branch
(HH524)
Enclosure to PWSC(97-98)43
8002MG - Ruttonjee Hospital - air conditioning
Details of Consultants' Fees
Breakdown of estimates for consultants' fees
|
Category of works/items
|
|
Estimated
man
months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Tender assessment
|
Professional
Technical
|
3.75
11.00
|
40
16
|
3.0
3.0
|
0.63
0.61 |
|
(b)Supervision
|
Professional
Technical
|
5.25
9.75
|
40
16
|
2.1
2.1
|
0.61
0.38
_______ |
|
|
Total
|
2.23
_________ |
Notes :
- A multiplier factor of 3 is applied to the average MPS point to arrive at the full costs including the consultants overheads and profit, as the staff will be employed in the consultants office (as at 1.4.96, MPS pt 40 and 16 are equivalent to $55,390 and $18,595 per month respectively). A multiplier factor of 2.1 is applied in the case of site staff supplied by the consultants.
- The figures given above are based on estimates prepared by Hospital Authority. We will only know the actual fees upon finalisation of the accounts of the works contract.
(HH524)
Last Updated on 16 August 1999
