For discussion PWSC(96-97)64
on 6 November 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories East Development
(Civil Engineering - Land development)
324CL - Tseung Kwan O development, phase 3, remaining engineering works

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 324CL, entitled "Tseung Kwan O development, phase 3 - extension of Road D6 to area 137", to Category A at an estimated cost of $95.1 million in money-of-the-day prices; and
2. the retention of the remainder of 324CL in Category B.

---

PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
324CL - Tseung Kwan O development, phase 3, remaining engineering works

---

PROBLEM

At present, there is no access road to Tseung Kwan O (TKO) area 137.

PROPOSAL

2. The Director of Territory Development, with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 324CL to Category A at an estimated cost of $95.1 million in money-of-the-day (MOD) prices for extending Road D6 to TKO area 137.

PROJECT SCOPE AND NATURE

3. The full scope of 324CL covers engineering works associated with the development of phase 3 of TKO which comprises -

1. site formation works at Pak Shing Kok, including roads and drains and service reservoir sites;
2. town centre extension - reclamation and main drainage extension;
3. provision of a finger pier and breakwater;
4. town centre extension - roads, drains and sewers, ferry and public piers and landscaping;
5. construction of Road P2 from Road D1 to Western Coast Road;
6. construction of the Western Coast Road;
7. cross-bay bridge and flyover at P2/D9 junction;
8. dualling of Hang Hau Road;
9. provision of flyovers at P2/D1 roundabout, at P2/D4 junction and at P2/D8 junction; and
10. connection of Road D6 from Road P1 to Road D3 and from Road D6 to area 137.

4. We upgraded part of the works in paragraphs 3(b) and 3(i) above to Category A in June 1993, July 1995 and July 1996. The part of the project we now propose to upgrade to Category A covers part of the works in paragraph 3(j), comprising the construction of -

1. a dual 2-lane carriageway extending the existing Road D6 to area 137;
2. associated drainage and sewerage works; and
3. associated landscaping works.

JUSTIFICATION

5. The Port and Airport Development Strategy Study has identified TKO area 137 as a site suitable for the development of potentially hazardous installations and deep waterfront industries. A landuse survey under the "Engineering Feasibility Study of Development of TKO area 137" completed in 1993 indicated that there would be positive demand for sites for these developments. We have therefore decided to carry out necessary reclamation works to provide land for these developments.

6. Works under 501CL "Tseung Kwan O port development at area 137 (Fat Tong O), stage 1 reclamation" had already commenced in January 1996 for completion in April 1998. We plan to start the remaining reclamation and engineering infrastructure works for area 137 in September 1997 for completion by late 2000. As there is only marine access to area 137 at present, we need to extend the existing Road D6 by constructing a 1.4 kilometre dual 2-lane carriageway to provide land access to area 137 for construction traffic in time and to serve the developments subsequently.

7. The proposed works also comprise construction of footpaths and cycle tracks along the carriageway, and landscaping such as planting between the carriageways, footpaths and cycle tracks. This will enhance the environment and provide amenity facilities for the new town.

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the project to be $95.1 million in MOD prices (see paragraph 9 below), made up as follows -

We propose to employ site staff through consultants as we do not have sufficient in-house staff to supervise the project. A breakdown by man months of the estimate for resident site staff expenses is at the Enclosure.

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

10. We have derived the MOD estimate on the basis of the Government’s forecasts of trend labour and construction prices for the period 1997 and 2000. We will tender the proposed works under a lump sum contract because we have firm quantities for the majority of the works. As the contract period is 21 months, the contract will not provide for adjustments to the tender price due to inflation.

11. We estimate the annually recurrent expenditure for the project to be $1.845 million, of which $56,000 (in respect of the sewerage works) will be charged to the Sewage Services Trading Fund. Subject to the Legislative Council passing a Resolution on appropriation of assets to the Trading Fund, the sewerage works under the project will, upon completion, become assets in the Fund valued at cost.

12. The associated sewerage works included in this project would have no impact on sewerage charges.

PUBLIC CONSULTATION

13. We consulted the Traffic and Transport Committee of the Sai Kung District Board on the proposed works in April 1994. Members supported the proposal. We gazetted the proposal under the Roads (Works, Use and Compensation) Ordinance on 23 September 1994 and received no objection.

ENVIRONMENTAL IMPLICATIONS

14. The Director of Environmental Protection completed an Environmental Review in October 1995 and concluded that the proposed works would not have any long term environmental impact. No Environmental Impact Assessment study is therefore necessary. We will implement the recommended mitigation measures in the contract documents to prevent short term environmental impacts during construction.

LAND ACQUISITION

15. This project does not require land acquisition.

BACKGROUND INFORMATION

16. We upgraded 324CL to Category B in December 1991. In June 1993, Finance Committee approved the upgrading of part of 324CL to Category A for the preparation of the seabed and construction of the permanent seawall for the town centre extension. In July 1995, Finance Committee approved the upgrading of part of 324CL to Category A which comprises piled foundations for the proposed flyover over the P2/D8 junction. In July 1996, Finance Committee further approved the upgrading of part of 324CL to Category A for carrying out the stage 1 works of the remaining reclamation in town centre extension.

17. The Director of Civil Engineering has completed the detailed design and drawings for the proposed works using in-house staff. We plan to start works in April 1997 for completion in December 1998.

18. We will implement the remainder of 324CL in further stages starting from July 1999 for completion by August 2002.

---

Enclosure to PWSC(96-97)64

324CL - Tseung Kwan O development, phase 3, remaining engineering works

Breakdown of the estimate for resident site staff expenses

^*MPS = Master Pay Scale

Notes

1. In-house staff of the Director of Civil Engineering (DCE) will provide the services of the professional staff.

2. A multiplier factor of 2.1 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 supplied by the consultants. (At 1.4.95, MPS pt. 16 = $17,270 p.m.)

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

---