For discussion PWSC(97-98)17
on 9 May 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories East 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 - remaining reclamation in the town centre extension, stage II : site investigation and consultants’ fees", to Category A at an estimated cost of $24.1 million in money-of-the-day prices; and

  2. the retention of the remainder of 324CL in Category B.

PROBLEM

We need to carry out site investigation and the detailed design for stage II of the remaining reclamation in the Tseung Kwan O (TKO) town centre extension as part of the planned development of the TKO New Town.

PROPOSAL

2. The Director of Territory Development (DTD), 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 $24.1 million in money-of-the-day (MOD) prices for carrying out the necessary site investigation and detailed design for stage II of the remaining reclamation works in the TKO town centre extension.

PROJECT SCOPE AND NATURE

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

  1. site formation works at Pak Shing Kok, including roads, drains and service reservoir sites;

  2. reclamation and main drainage works in the town centre extension;

  3. provision of a finger pier and a breakwater;

  4. roads, drains, sewers, ferry and public piers, and landscaping works in the town centre extension;

  5. construction of Road P2 from Road D1 to the Western Coast Road;

  6. construction of the Western Coast Road;

  7. construction of a cross-bay bridge and a flyover at the P2/D9 road junction;

  8. widening of Hang Hau Road to a dual two-lane carriageway;

  9. provision of flyovers at the P2/D1 roundabout, at the P2/D4 road junction and at the P2/D8 road junction; and

  10. construction of Road D6 from Road P1 to Road D3 and its extension to area 137.

4. We upgraded parts of 324CL described in paragraphs 3(b), 3(i) and 3(j) above to Category A on four occasions; in June 1993, July 1995, July 1996, and November 1996 (see paragraph 15 below). The part of the project we now propose to upgrade to Category A covers the detailed design for stage II of the remaining reclamation in the TKO town centre extension (the remaining part of the works described in paragraph 3(b) above), which comprises -

  1. site investigation works;

  2. detailed design of the proposed reclamation and main drainage works; and

  3. preparation of tender documents and assessment of tenders.

JUSTIFICATION

5. A part of the phase 3 development of TKO, the "remaining reclamation in the town centre extension", is to commence in two stages. Stage I comprises the seabed preparation under 413CL, "Tseung Kwan O development, phase III, reclamation (part) of the town centre extension" and the reclamation works under 474CL, "Tseung Kwan O development, phase III, remaining reclamation in the town centre extension, stage I". We plan to implement stage II of the remaining reclamation in the town centre extension to provide land for government, institutional and community facilities, open space, roads and the MTRC’s TKO extension line. These facilities are required for the planned development of the TKO New Town. To prepare for the stage II reclamation works, we need to conduct the necessary site investigation works and carry out the detailed design.

6. The MTRC plans to commence the construction of its TKO extension line in late 1998 for completion in year 2002. Part of the land required for the construction of this TKO extension line falls on stage II of the remaining reclamation in the town centre extension, and we need to hand over this part of the reclaimed land to MTRC in late 1999. To tie in with the above developments, we need to start the stage II reclamation works in mid 1999 so that the reclaimed land to be handed over to MTRC can be completed by late 1999 and that the stage II reclamation can be completed by early 2002. Accordingly, we need to start the detailed design and necessary site investigation works for the stage II works in July 1997 for completion in June 1999.

7. Due to insufficient in-house resources, DTD proposes to engage consultants to supervise the site investigation works and to carry out the detailed design.

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the project to be $24.1 million in MOD prices, made up as follows -



$ million


(a) Site investigation


3.2


(b) Consultants’ fees


16.0


(i) supervision of site investigation

0.3



(ii) detailed design

14.1



(iii) preparation of tender document and assessment of tenders

1.6



(c) Contingencies


1.9




_____


Sub-total


21.1

(at December

1996 prices)

(d) Inflation allowance


3.0




_____


Total


24.1

(in MOD prices)


_____


A breakdown by man months of the estimate for the consultants’ fees is at the Enclosure.

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

Year

$ million
(Dec 1996)

Price
adjustment
factor

$ million
(MOD)

1997 - 98

6.5

1.06750

6.9

1998 - 99

12.9

1.16358

15.0

1999 - 2000

1.7

1.26830

2.2

_____


_____

21.1


24.1

_____


_____

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 2000. Government’s term contractor and the Public Works Central Laboratory will undertake the necessary site investigation works and laboratory testing respectively.

11 The proposed consultancy has no recurrent financial implications.

PUBLIC CONSULTATION

12 We presented the draft TKO Outline Zoning Plan (OZP), which encompasses all the works under 324CL, to the Sai Kung District Board in January 1992. The District Board supported the proposed works. The Governor-in-Council approved the OZP on 16 July 1996.

ENVIRONMENTAL IMPLICATIONS

13. The proposed stage II of the remaining reclamation in the town centre extension forms an integral part of the overall TKO New Town reclamation, the environmental impact of which was addressed in an Environmental Impact Assessment (EIA) study completed in May 1990. The Director of Environmental Protection completed an Environmental Review in February 1997 for the proposed works and concluded that the mitigation measures recommended in the EIA study would be sufficient to control dust, noise, site runoff and water quality impacts arising from the proposed works. No further EIA study is therefore necessary. The proposed consultancy itself will have no adverse environmental implications. We will implement all the recommended mitigation measures including monitoring programmes to ensure that water, air and noise control standards are observed.

LAND ACQUISITION

14 The proposed consultancy does not require land acquisition.

BACKGROUND INFORMATION

15 We upgraded 324CL to Category B in December 1991. In June 1993, Finance Committee approved the upgrading of part of 324CL (part of paragraph 3(b) above) to Category A as 413CL 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 another part of 324CL (part of paragraph 3(i) above) to Category A as 456CL for piled foundations for the proposed flyover over the P2/D8 junction. In July 1996, Finance Committee approved the upgrading of a further part of 324CL (part of paragraph 3(b) above) to Category A as 474CL for carrying out the stage 1 works of the remaining reclamation in the town centre extension. In November 1996, Finance Committee further approved the upgrading of another part of 324CL (part of paragraph 3(j) above) to Category A as 698TH for extending Road D6 to area 137.

16. We plan to start the works under the proposed consultancy in July 1997 for completion in June 1999. During this 24-month period, the consultants engaged for the design and investigation works will also help resolve the interfacing problems arising from the MTRC’s TKO extension line, and will assist the Administration in dealing with administrative and statutory issues such as public consultation, gazetting and resolution of any objections that we may receive under statutory procedures. We will commence the reclamation works in July 1999 for completion in early 2002.

Planning, Environment and Lands Branch
April 1997
(LL218)

Enclosure to PWSC(97-98)17

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

Breakdown of the estimate for consultants’ fees

Consultants’ staff costs


Estimated man months

Average MPS salary point

Multiplier factor

Estimated fee
($ million)

(a)Supervision
of site investigation

Professional
Technical

1
2

40
16

3.0
3.0

0.17
0.11

(b) Detailed design

Professional
Technical

60
75

40
16

3.0
3.0

9.97
4.18

(c)Preparation
of tender documents and assessment of tenders

Professional
Technical

5
14

40
16

3.0
3.0

0.83
0.78





______


Total consultants’ staff costs

16.04



______

*MPS = Master Pay Scale

Notes

  1. A multiplier factor of 3 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 employed in the consultants’ offices. (At 1.4.96, MPS pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 p.m.)

  2. The figures given above are based on estimates prepared by the Director of Territory Development. The proposed consultancy is part of the overall consultancy agreement for the Tseung Kwan O development, phase 3.

(LL218)

Last Updated on 16 August 1999