For discussion PWSC(96-97)62
on 6 November 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Education - Primary
186EP - Two primary schools in area 55, Tseung Kwan O
227EP - Primary school in area 31, Tin Shui Wai

Members are invited to recommend to Finance Committee the upgrading of 186EP and 227EP to Category A at an estimated total cost of $196.4 million in money-of-the-day prices for the construction of two primary schools in Tseung Kwan O and one primary school in Tin Shui Wai.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
A comparison of the standard cost of a primary school project with the estimated costs of the proposed school projects

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PROBLEM

There will be shortfalls of 68 primary school classes in school zone 335 (Tseung Kwan O East) by 1998 and 81 classes in school zone 316 (Tin Shui Wai) by 1999.

PROPOSAL

2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Education and Manpower, proposes to upgrade the following projects to Category A at an estimated total cost of $196.4 million in money-of-the-day (MOD) prices -

PROJECT SCOPE AND NATURE

3. All the three primary schools will be of the standard design. Each school will comprise -

1. 30 classrooms;
2. four special rooms;
3. three remedial teaching rooms;
4. a guidance activity/interview room;
5. two interview rooms;
6. a staff common room;
7. a student activity centre;
8. a library; and
9. an assembly hall and ancillary facilities.

JUSTIFICATION

4. For school zone 335 (Tseung Kwan O East), there are at present four primary schools providing a total of 120 classes. Upon the completion of 162EP "Two primary schools in area 59, Tseung Kwan O" and 193EP "Second primary school in area 37, Tseung Kwan O"¹ in 1997, the supply of primary school classes in this school zone will increase to 210 classes. The Director of Education (D of E) forecasts that the demand for primary school places in this school zone will reach 278 classes in 1998, resulting in a shortfall of 68 classes. In order to reduce the shortfall, we will provide the proposed two whole-day primary schools in 1998. We will meet the remaining shortfall in the future school building programme.

5. For school zone 316 (Tin Shui Wai), there are at present eight primary schools providing a total of 420 classes. D of E forecasts that the demand for primary school classes in this school zone will reach 501 classes in 1999, resulting in a shortfall of 81 classes. In order to reduce the shortfall, we will provide the proposed whole-day primary school in 1999. We will meet the remaining shortfall in the future school building programme.

FINANCIAL IMPLICATIONS

6. We estimate the capital costs of 186EP and 227EP to be $135.4 million and $61 million respectively in MOD prices (see paragraph 7 below), made up as follows -

A comparison of the standard cost of a primary school with the project estimates of these two projects is at the Enclosure.

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

8. We have derived the MOD estimate on the basis of the Government’s forecasts of trend labour and construction prices over the period between 1996 and 2003. For 186EP, D Arch S will implement the project under a fixed-price lump-sum contract because we can clearly define the scope of works in advance, leaving little room for uncertainty. In order to tie in with the overall housing project, we will entrust the construction of 227EP to the Housing Authority which will incorporate the piling contract for the school into the respective piling contract for the housing estate development, and building contract into the respective main contract. They will be on a lump-sum basis with provision for price fluctuation because the contract period will last longer than 21 months.

9. We estimate the annually recurrent expenditure for each school to be $15.8 million. As the new schools will be aided schools, the individual sponsoring bodies will bear the costs of furniture and equipment, estimated at $2.1 million for each school.

PUBLIC CONSULTATION

10. We consulted the Community Affairs Committee of the Sai Kung District Board in August 1996 on 186EP, and the Social Services and Publicity Committee of the Yuen Long District Board in July 1996 on 227EP. They all supported the school projects.

ENVIRONMENTAL IMPLICATIONS

11. The Director of Environmental Protection (DEP) conducted an Environmental Review (ER) for 186EP in October 1996. DEP also vetted the Environmental Assessment Study (EAS) conducted by the Director of Housing
(D of H) for 227EP in February 1996. The findings of ER and EAS indicated that the proposed schools would be subject to traffic noise impacts in excess of the standards stipulated in the Hong Kong Planning Standards and Guidelines. We will implement the following noise abatement measures and have included the costs of providing these measures in the project estimates -

12. For short term construction impact, we will control noise, dust and site run-off nuisances during construction to comply with established guidelines/standards through the implementation of mitigation measures in relevant contracts.

LAND ACQUISITION

13. The two projects do not require land acquisition.

BACKGROUND INFORMATION

14. We included 186EP in Category B in August 1995, and 227EP in September 1996.

15. We have completed site investigations for the two projects. We are finalizing working drawings and tender documents using in-house staff. For 186EP, D Arch S plans to start the construction works in March 1997 for completion in December 1998. For 227EP, D of H will start the construction works in December 1996 for completion in May 1999 to tie in with the overall housing development.

1 -- Both 162EP and 193EP were upgraded to Category A by Finance Committee in November 1995 and February 1996 respectively

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Enclosure to PWSC(96-97)62

A comparison of the standard cost of a primary school project with the estimated costs of the proposed school projects

* Assumptions for standard cost

1. No site formation work/geotechnical work is required as it is normally carried out under a separate engineering vote.

2. Piling cost is based on 110 nos. of steel H-piles of an average depth of 30 metres.

3. Cost for drainage and external works is for a standard school site area of 6 200 square metres built on a flat site. No diversion of existing utilities or noise mitigration measures are required.

4. No consultancy services are required.

5. Furniture and equipment cost is excluded as it is usually borne by the sponsoring body.

# Assuming the costs for the two schools under 186EP are the same, the average cost per school is used for comparison.

Notes

A. For 186EP, the piling cost for each school is based on 168 nos. of steel H-piles of an average depth of 40 metres.

For 227EP, the piling cost is based on actual tenders returned for the piling contract of the respective housing estate development. The Director of Housing has included a clause in the relevant contract which enables the Government to exclude the piling works for the primary school if funding approval cannot be obtained.

B. For 227EP, the cost for building services is higher because the provision of air-conditioning is required as a noise mitigation measure.

C. For 186EP, the cost for drainage and external works is higher because $0.4 million per school is included for the construction of a noise barrier wall.

D. For 227EP, 2% Housing Authority on-cost is required.

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