For discussion PWSC(97-98)25
on 21 May 1997
ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 711 - HOUSING
Civil Engineering - Land development
556CL - Planning and engineering feasibility study for development at Anderson Road
557CL - Planning and engineering feasibility study for development near Choi Wan Road and Jordan Valley
Members are invited to recommend to Finance Committee the upgrading of projects 556CL and 557CL to Category A at an estimated cost of $34.7 million in money-of-the-day prices for carrying out planning and engineering feasibility studies and site investigation for housing developments at Anderson Road, Choi Wan Road and Jordan Valley.
PROBLEM
We need to undertake planning and engineering studies to establish the feasibility of developing sites for housing at Anderson Road, Choi Wan Road and Jordan Valley.
PROPOSAL
2. The Director of Civil Engineering (DCE), with the support of the Secretary for Housing and the Secretary for Planning, Environment and Lands, proposes to upgrade the following projects to Category A at an estimated total cost of $34.7 million in money-of-the-day (MOD) prices -
|
Project estimate
$million
(MOD)
|
|---|
|
(a) 556CL - Planning and engineering feasibility study for development at Anderson Road
|
18.7 |
|
(b) 557CL - Planning and engineering feasibility study for development near Choi Wan Road and Jordan Valley
|
16.0 |
PROJECT SCOPE AND NATURE
3. The scope of the projects comprises feasibility studies and site investigation works for proposed housing developments at Anderson Road, Choi Wan Road and Jordan Valley. Each feasibility study includes the following specific tasks -
- a Planning study to determine the scope of the housing development and the implementation plan;
- an Environmental Impact Assessment (EIA) study, including an Ecological Impact Assessment;
- a Traffic Impact Assessment (TIA) study;
- a Drainage and Sewerage Impact Assessment (D&SIA) study; and
- an Engineering study.
JUSTIFICATION
4. Under the latest forecast of the Territorial Development Strategy Review, the development capacity of currently approved plans and programmes, especially those for meeting the forecast housing demand, will greatly diminish by the year 2001. The current indication is that we need to develop new sites to accommodate a population growth of 750 000 in the medium-term between 2001 and 2006. In response to proposals from the Director of Planning, the Committee on Planning and Land Development, in October 1996, endorsed measures to boost housing supply. One of the measures proposed was the need to identify new sites for housing development.
5. The Director of Planning has identified several sites of a total area of about 62 hectares at Anderson Road, Choi Wan Road and Jordan Valley which may be suitable for housing development. To speed up the development process, we propose to integrate both planning and engineering into a single study.
6. The proposed studies are essential in order to establish the feasibility of implementing housing development on the sites, formulate a preferred land-use plan, conduct impact assessments and carry out engineering studies for ascertaining the feasibility of the engineering works. The feasibility studies will also provide the necessary information to help us decide how and in what time frame to implement the engineering works in an expeditious manner. As part of the studies, we will carry out site investigation to establish the soil properties and design parameters. We intend to commence detailed design of the engineering works immediately after completion of the studies.
7. DCE proposes to engage two separate consultants to undertake the studies and to supervise the associated site investigation works as the department has insufficient in-house resources.
FINANCIAL IMPLICATIONS
8. We estimate the total costs of the projects 556CL and 557CL to be $34.7 million in MOD prices, made up as follows -
|
$ million
|
|
|---|
|
556CL
|
557CL
|
|
|
(a) Site investigation
|
|
2.9
|
|
4.0
|
|
|
(b) Consultants fees
|
|
12.2
|
|
9.0
|
|
|
(i) Planning study
|
3.2
|
|
2.0
|
|
|
|
(ii) EIA study
|
2.7
|
|
2.8
|
|
|
|
(iii) TIA study
|
1.8
|
|
1.0
|
|
|
|
(iv) D&SIA study
|
1.7
|
|
1.0
|
|
|
|
(v) Engineering
study
|
2.2
|
|
1.6
|
|
|
|
(vi) Supervision of
site investigation
|
0.6
|
|
0.6
|
|
|
|
(c) Contingencies
|
|
1.4
____
|
|
1.2
____
|
|
Sub-total
|
|
16.5
|
|
14.2
|
(at December
1996 prices) |
|
(d) Inflation allowance
|
|
2.2
|
|
1.8
|
|
|
|
____
|
|
____
|
|
|
Total
|
|
18.7
|
|
16.0
|
(in MOD prices) |
|
|
____
|
|
____
|
|
Breakdown by man months of estimates for consultants fees is at Enclosures 2 and 3.
9. Subject to approval, we will phase expenditure as follows -
|
Year
|
$ million
(Dec 1996)
|
Price
adjustment
factor
|
$ million
(MOD)
|
|---|
|
556CL
|
557CL
|
|
556CL
|
557CL
|
|---|
|
1997-98
|
7.6
|
7.5
|
1.06750
|
8.1
|
8.0 |
|
1998-99
|
6.6
|
4.3
|
1.16358
|
7.7
|
5.0 |
|
1999-2000
|
2.3
|
2.4
|
1.26830
|
2.9
|
3.0 |
|
_____
|
_____
|
|
_____
|
_____ |
|
16.5
|
14.2
|
|
18.7
|
16.0 |
|
_____
|
_____
|
|
_____
|
_____ |
10. We have derived the MOD estimates on the basis of the Governments forecasts of trend labour and construction prices for the period 1997 to 2000. The site investigation works are subject to remeasurement as there is uncertainty over the drilling depths. The contracts will not provide for adjustments to the tender price due to inflation as the contract period will be less than 21 months. We will award the consultancy studies on a lump-sum basis with no provision for inflation adjustment as the studies period will be less than 12 months.
11. The proposed studies have no recurrent financial implications.
PUBLIC CONSULTATION
12. We consider public consultation unnecessary at this stage as the two projects are feasibility studies.
ENVIRONMENTAL IMPLICATIONS
13. The Director of Environmental Protection completed an Environmental Review in January 1997 on the proposed projects and concluded that an EIA is required to be included in each engineering feasibility study to adequately address potential environmental impacts and to propose mitigation measures where necessary. The studies themselves do not have any environmental implications.
LAND ACQUISITION
14. The studies do not require land acquisition.
Background INFORMATION
15. We upgraded projects 556CL and 557CL to Category B in March 1997. We plan to start the proposed studies in August 1997 for completion in August 1998dredging, management and subsequent capping of CMP III.
Housing Branch
May 1997
(DD1111)
Enclosure 2 to PWSC(97-98)25
DETAILS OF CONSULTANTS FEES
556CL - Planning and engineering feasibility study for development at Anderson Road Breakdown of estimates for consultants fees
|
Consultants staff costs
|
|
Estimated
man
months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Planning study
|
Professional
Technical
|
14
16
|
40
16
|
3
3
|
2.33
0.89 |
|
(b) EIA study
|
Professional
Technical
|
12
12
|
40
16
|
3
3
|
1.99
0.67 |
|
(c) TIA study
|
Professional
Technical
|
6
15
|
40
16
|
3
3
|
1.00
0.84 |
|
(d) D&SIA study
|
Professional
Technical
|
6
12
|
40
16
|
3
3
|
1.00
0.67 |
|
(e) Engineering study
|
Professional
Technical |
9
12
|
40
16
|
3
3
|
1.50
0.67 |
|
(f) Supervision of site investigation
|
Professional
Technical |
2
4
|
40
16
|
3
3
|
0.33
0.22 |
|
|
|
|
|
_____ |
|
Total consultants staff costs
|
|
|
|
12.11 |
|
|
|
|
|
_____ |
Notes :
- 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 = $18,595 p.m.).
- The figures given above are based on estimates prepared by the Director of Civil Engineering. We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive lump-sum fee bid system.
(DD1111)
Enclosure 3 to PWSC(97-98)25
DETAILS OF CONSULTANTS FEES
557CL - Planning and engineering feasibility study for development near Choi Wan Road and Jordan Valley
Breakdown of estimates for consultants fees
|
Consultants staff costs
|
|
Estimated
man
months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Planning study
|
Professional
Technical
|
9
8
|
40
16
|
3
3
|
1.50
0.45
|
|
(b) EIA study
|
Professional
Technical
|
13
12
|
40
16
|
3
3
|
2.16
0.67 |
|
(c) TIA study
|
Professional
Technical
|
4
6
|
40
16
|
3
3
|
0.66
0.33 |
|
(d) D&SIA study
|
Professional
Technical
|
4
6
|
40
16
|
3
3
|
0.66
0.33 |
|
(e) Engineering study
|
Professional
Technical
|
7
7
|
40
16
|
3
3
|
1.16
0.39 |
|
(f) Supervision of site investigation
|
Professional
Technical
|
2
4
|
40
16
|
3
3 |
0.33
0.22 |
|
|
|
|
|
_____ |
|
Total consultants staff costs
|
|
|
|
8.86 |
|
|
|
|
|
_____ |
Notes :
- 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 1.4.1996, MPS pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 p.m.).
- The figures given above are based on estimates prepared by the Director of Civil Engineering. We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive lump-sum fee bid system.
(DD1111)
Last Updated on 16 August 1999
