For discussion PWSC(97-98)10
on 9 May 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 709 - WATERWORKS
Water Supplies - Fresh water supplies

205WF -Integration of the North Point and Central cross harbour mains supply zones - remaining works

Members are invited to recommend to Finance Committee the upgrading of 205WF to Category A at an estimated cost of $91.3 million in money-of-the-day prices.

PROBLEM

A failure in either the existing North Point cross harbour main or the Central cross harbour main will affect the supply of fresh water to the areas on Hong Kong Island served by the two respective mains because there is no linkage between the two mains.

PROPOSAL

2. The Director of Water Supplies (DWS), with the support of the Secretary for Works, proposes to upgrade 205WF to Category A at an estimated cost of $91.3 million in money-of-the-day (MOD) prices for the laying of fresh water mains in Causeway Bay and Wan Chai in order to link up the North Point and the Central cross harbour mains.

PROJECT SCOPE AND NATURE

3. The scope of works under 205WF comprises -

  1. the laying of about 0.4 kilometres of fresh water trunk main of 1 000 millimetres in diameter in Harcourt Road, Gloucester Road and Fenwick Street; and

  2. the laying of about 0.7 kilometres of fresh water trunk main of 1 000 millimetres in diameter in Canal Road East, Yee Wo Street and Victoria Park.

JUSTIFICATION

4. The Sha Tin water treatment works supplies fresh water to the central, western and south-western parts of Hong Kong Island via the Central cross harbour main, and to North Point, Causeway Bay, Wan Chai and the southern areas of Hong Kong Island via the North Point cross harbour main. At present, there is no connection between the two supply mains and it is not possible to transfer water between the two supply zones. If the North Point cross harbour main or the Central cross harbour main fails, the fresh water supply to areas on Hong Kong Island served by either one of these mains would be cut-off. DWS considers it necessary to install trunk mains to link up the two cross harbour mains on Hong Kong Island so as to facilities and to improve safeguard the reliability of fresh water supply to Hong Kong Island.

FINANCIAL IMPLICATIONS

5. We estimate the capital cost of the project to be $91.3 million in MOD prices made up as follows -


$ million


(a) Pipe materials

7.5


(b) Mainlaying

52.4


(c) Contingencies

5.6



_____


Sub-total

65.5

(at December
1996 prices)

(d) Inflation allowance

25.8



_____


Total

91.3

(in MOD prices)

_____


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

Year

$ million
(Dec 1996)

Price
adjustment
factor

$ million
(MOD)

1997 - 98

0.1

1.06750

0.1

1998 - 99

8.1

1.16358

9.4

1999 - 2000

16.8

1.26830

21.3

2000 - 01

16.4

1.38244

22.7

2001 - 02

13.1

1.50686

19.7

2002 - 03

11.0

1.64248

18.1

_____


_____

65.5


91.3

_____


_____

7. 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 2003. We will tender the proposed works under a remeasurement contract because quantities of the works may vary with the actual ground conditions. We will provide for adjustment due to inflation in the contract because the construction period will be longer than 21 months.

8. We estimate that the proposed works will incur an annually recurrent expenditure of $82,200.

9. This project by itself would lead to an increase in water charges by a maximum of 0.05% in real terms by the year 2003.1 .

1 The increase in water charges is calculated on the assumption that the demand remains static during the period 1997 to 2003 and the proportion of contribution from rates to water revenue remains unchanged.

PUBLIC CONSULTATION

10. We consulted the Wan Chai District Board on 17 December 1996 and Members had no objections to the proposed project. They expressed concern on the impacts on traffic flow during construction and requested us to keep the construction period to the minimum in order to reduce the inconvenience caused to the public. We will incorporate the relevant control clauses into the works contracts and closely supervise the construction activities in order to ensure that the traffic flow in the vicinity of the work sites will not be adversely affected and the proposed works will be completed on time. We also consulted the Eastern District Board on 2 January 1997 and the Board supported the proposed project.

ENVIRONMENTAL IMPLICATIONS

11. The Director of Environmental Protection (DEP) completed an environmental review for the project in November 1994 and concluded that the project would not have long term adverse environmental impacts. Therefore, no environmental impact assessment would be necessary. For the short term impacts during construction, we will control noise, dust and site run-off to comply with established standards and guidelines through the implementation of appropriate mitigation measures in the relevant works contracts.

LAND ACQUISITION

12. The proposed project does not require land acquisition.

Background INFORMATION

13. DWS has already laid part of the trunk main along King’s Road, Causeway Road and Hennessy Road under 133WF2, 135WF3, 169WF 4 and 210WF 5 for connecting the North Point and the Central cross harbour mains.

2. We upgraded 133WF "Improvemnet to Hong Kong East trunk feed system" to Category A at an Approved Project Estimate (APE) of $30 million in 1988. The project scope includes laying of about 3.2 kilometres water main along King's Road, of which about 2 kilometres water main was contributed to the work under 205WF. The project was completed in 1993.

3. We upgraded 135 WF "Improvement to Hong Kong East trunk feed system -stage II" to Category A at an APE of $55 million in 1990. The project scope includes laying of about 4.2 kilometres water main from Causeway Road to Eastern Service Reservoir and the laying of about 0.5 kilometres water main along Village Road and Wong Nai Chung Road. For the 4.3 Kilometres water main, about 0.35 kiometres of the water main was contributed to the work under 205WF. The project was completed in 1994.

4. We completed the laying of 0.3 kilometres water main along Hennessy Road under 169WF in 1991 and charged the cost of $2 million to block allocation Subhead 9003WX "Minor waterworks and studies/investigations from items in Category D of the Public Works Programme".

5. We completed the laying of 35 metres of water main along Hennessy Road under 210WF in 1995 and charged the cost of $1 million to block allocation Subhead 9003WX.

14. We upgraded this project to Category B in August 1995 and part of the same project to Category A in July 1996 as 228WF "Integration of the North Point and Central cross harbour mains supply zones - remaining works -mainlaying in Lockhart Road" with an Approved Project Estimate of $63.2 million for the laying of 1.3 kilometres of water main along Lockhart Road. The two cross harbour mains will be linked up after the mainlaying works under 228WF and the proposed water main described in paragraph 3 above are completed in the year 2000. By then, water supply will be transferable between the two supply zones.

15. DWS has completed the detailed design using in-house staff resources for the proposed works. We plan to start the proposed works in December 1997 for completion in December 2000.

Works Branch
May 1997
(LL215)

Last Updated on 16 August 1999