For discussion PWSC(97-98)33
on 21 May 1997
ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 711 - HOUSING
Territory Development
Civil Engineering - Land development
558CL - Planning and development studies on North West New
Territories : consultants fees and site investigation
559CL - Planning and development studies on North East New
Territories : consultants fees and site investigation
560CL - Planning and development studies on Hong Kong Island South
and Lamma Island : consultants fees and site investigation
Members are invited to recommend to Finance Committee the upgrading of projects 558CL, 559CL and 560CL to Category A at an estimated total cost of $126.7 million in money-of-the-day prices for carrying out three integrated planning and engineering studies and site investigation works on North West New Territories (NWNT), North East New Territories (NENT) and Hong Kong Island South and Lamma Island (HKIS).
PROBLEM
We need to carry out integrated planning and engineering studies and site investigation works in NWNT, NENT and HKIS to identify suitable development areas and expedite the provision of the necessary infrastructure for meeting medium-term housing demand in the next 10 years as well as to establish the long-term potential of the study areas in accommodating strategic growth in the next 15 years.
PROPOSAL
2. The Director of Territory Development (DTD), with the advice of the Director of Planning, and the support of the Secretary for Planning, Environment and Lands and the Secretary for Housing, proposes to upgrade the following projects to Category A at an estimated total cost of $126.7 million in money-of-the-day (MOD) prices -
|
|
Project Estimate
$ million
(MOD)
|
|---|
|
(a) 558CL -
|
Planning and development studies on North West New Territories : consultants fees and site investigation
|
55.7 |
|
(b) 559CL -
|
Planning and development studies on North East New Territories : consultants fees and site investigation
|
42.2 |
|
(c) 560CL -
|
Planning and development studies on Hong Kong Island South and Lamma Island : consultants fees and site investigation
|
28.8 |
|
|
_____ |
|
Total
|
126.7
_____ |
PROJECT SCOPE AND NATURE
3. The scope and objectives of the studies are to -
- examine the scope and feasibility of accommodating strategic growth development in NWNT, NENT and HKIS for the medium-term (next 10 years), the long-term (next 15 years and beyond), within the context of the Territorial Development Strategy Review (TDSR);
- identify suitable development areas, define the appropriate scale and mix of development and confirm their acceptability;
- examine the impact of the strategic growth development on non-strategic growth areas in NWNT, NENT and HKIS, and recommend, where necessary, a new land use and infrastructure development framework for these areas;
- assess the physical impact of the proposed development in terms of traffic and transport, sewerage, drainage, water supply, utilities, ecology, environment, waste disposal, landscape, agriculture and site formation, as well as the socio-economic impact, identify areas of concern and the quantum of infrastructural shortfalls, and recommend remedial measures/projects to address such shortfalls and concerns;
- devise development packages by order of priority and a comprehensive and a co-ordinated outline development programme for subsequent implementation, recommend lists of action areas and projects, prepare detailed layout plans and assess the institutional framework and land requirement and development costs;
- conduct site investigation works which would establish the ground conditions and design parameters and preliminary project feasibility studies (PPFSs) for the priority action areas and the priority infrastructure projects as identified in the studies; and
- carry out preliminary design of engineering works and confirm their feasibility through various impact studies and site investigation works.
4. The main output of the studies would comprise a number of recommended outline development plans for the three study areas and detailed layout plans for priority action areas as well as preliminary engineering designs for works packages, along with cost estimates and implementation programmes.
5. DTD proposes to commission separate consultancy studies for the study areas, during the period September to December 1997 for completion in year 2000.
JUSTIFICATION
6. The TDSR has identified a number of strategic growth areas to accommodate the forecast growth in population and employment in both the medium term and the long term. In view of the long lead time required for the completion of the planning process before "green-field" sites1 and infrastructure could be made available for actual development, we need to launch, as soon as possible, studies to formulate development plans and to ascertain the engineering feasibility of the proposed developments. Also, in view of the urgent need for more residential sites, particularly in the medium-term, we have to speed up the development process by adopting an integrated planning and engineering approach.
1 "Green-field" sites refer to sites which have not been actively planned and programmed for development and for which there are as yet no committed infrastructure services provided in a co-ordinated manner.
7. Under the conventional planning approach, we normally conduct an outline planning study as the first step to recommend the development plans and the key planning parameters through preliminary impact assessments. On completion of the outline planning study, we commence a Preliminary Project Feasibility Study (PPFS) for the engineering projects identified. When the PPFS is completed and approved, we bid for funds in the Resource Allocation Exercise (RAE). We then carry out engineering feasibility studies to prepare preliminary designs through detailed impact assessments and we conduct site investigations to ascertain the feasibility of the engineering works so that land acquisition can be initiated. Detailed design works follow afterwards.
8. To speed up the development process, we now propose to integrate the planning and engineering feasibility studies required to ascertain the acceptability of the strategic growth areas and the feasibility of the engineering infrastructure. An integrated approach will allow the planning and engineering assessments to be carried out concurrently as an iterative process. This approach will eliminate the time gap between the completion of the outline planning studies and the commencement of the engineering feasibility studies. Since PPFS and engineering feasibility studies are included as part of the integrated study, we can immediately commence detailed environmental impact assessments and detailed engineering design work after the completion of the study, subject to funding. In this way we estimate that we can shorten the development process by about one to two years.
9. Due to insufficient in-house resources, DTD proposes to engage consultants to undertake the studies and to supervise the associated site investigation works.
FINANCIAL IMPLICATIONS
10. We estimate the total capital costs of the projects 558CL, 559CL and 560CL to be $126.7 million in MOD prices, made up as follows -
|
558CL
|
559CL
|
560CL
|
|
|---|
|
$ million
|
|
|---|
|
(a) Consultants fees
|
|
|
|
|
|
(i) Planning study and Landscape and Visual Impact Assessment study
|
7.4
|
5.9
|
4.7
|
|
|
(ii) Traffic and Transport Assessment study
|
4.5
|
3.5
|
3.8
|
|
|
(iii) Engineering study
|
8.4
|
6.7
|
4.5
|
|
|
(iv) Environmental Impact Assessment study
|
5.2
|
4.2
|
2.4
|
|
|
(v) Studies on Socio-Economic Assessment and Implementation
|
1.1
|
1.0
|
0.9
|
|
|
(vi) Supervision of site investigation
|
1.5
|
1.0
|
0.5
|
|
|
Total Consultants fees
|
28.1
|
22.3
|
16.8
|
|
|
(b) Site Investigation
|
15.0
|
10.0
|
5.0
|
|
|
(c) Contingencies
|
4.3
____
|
3.2
____
|
2.2
____
|
|
Sub-total
|
47.4
|
35.5
|
24.0
|
(at December
1996 prices) |
|
(d) Inflation allowance
|
8.3
____
|
6.7
____
|
4.8
____
|
|
Total
|
55.7
____
|
42.2
____
|
28.8
____
|
(in MOD prices) |
Breakdowns by man-months of the estimate for consultants fees are attached at Enclosures I , II and III.
11. Subject to approval, we will phase the expenditure as follows -
|
Year
|
$ million
(Dec 1996)
|
Price
adjustment
factor
|
$ million
(MOD)
|
|---|
|
558CL
|
559CL
|
560CL
|
|
558CL
|
559CL
|
560CL
|
|---|
|
1997 - 98
|
9.6
|
5.5
|
2.7
|
1.06750
|
10.2
|
5.9
|
2.9 |
|
1998 - 99
|
23.4
|
17.0
|
10.9
|
1.16358
|
27.2
|
19.8
|
12.7 |
|
1999-2000
|
14.4
____
|
13.0
____
|
10.4
____
|
1.26830
____
|
18.3
____
|
16.5
____
|
13.2
____
|
|
47.4
____
|
35.5
____
|
24.0
____
|
|
55.7
____
|
42.2
____
|
28.8
____ |
12. We have derived the MOD estimates on the basis of Governments forecast of trend labour and construction prices for the period 1997 to 2000. We will award the proposed consultancy studies on a lump-sum basis with provision for inflation adjustment because the studies will exceed 12 months. We will tender the site investigation works under a standard remeasurement contract because the exact quantities of works involved may vary depending on the actual ground conditions. We will not provide for inflation adjustment in this contract as the contract period will not exceed 21 months.
13. The proposed studies have no recurrent financial implications.
PUBLIC CONSULTATION
14. We will consult relevant District Boards on the findings and recommendations of the integrated planning and engineering studies, both during the course of the studies and upon their completion.
ENVIRONMENTAL IMPLICATIONS
15. The proposed studies will have no adverse environmental implications. As part of the studies, the consultants will conduct environmental assessments to confirm the feasibility of the proposed developments and to identify all necessary environmental mitigation measures. The estimated costs of the environmental assessments for the three studies are $11.8 million and are included in the overall costs of the proposed studies.
LAND ACQUISITION
16. The studies do not require land acquisition.
BACKGROUND INFORMATION
17. Under the latest forecast of the TDSR, 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 strategic growth areas to accommodate a population growth of 750 000 in the medium-term between 2001 and 2006. We also need to draw up development plans to accommodate a further population growth of 900 000 in the long-term from 2006 to 2011.
18. To speed up the land supply to meet the housing demand, the TDSR has identified, in broad terms, a number of medium-term and long-term strategic growth development areas in the territory. The level of population that could be accommodated will be subject to further studies. The current indication is that NWNT, NENT and HKIS could accommodate population growth of 200 000, 120 000 and 60 000 respectively up to year 2011.
19. We upgraded projects 558CL, 559CL and 560CL to Category B in March 1997. We plan to start the proposed studies during the period September to December 1997 for completion in the year 2000.
20. In the 1997/98 Estimates, we sought funding for three conventional outline planning studies on strategic growth development areas in NWNT, NENT and HKIS with commitments of $7.95 million, $7.98 million and $5.0 million respectively. These items were approved under Head 118 Planning Department Subhead 700 General other non-recurrent. Subject to Members approval of the proposal at paragraph 2 above, the outline planning studies will be subsumed in the proposed integrated studies, and the funding for the outline planning studies will no longer be required. No expenditure has been incurred under Head 118 Planning Department Subhead 700 General other non-recurrent to date, in respect of the three outline planning studies.
Housing Branch
May 1997
(JJ180)
Enclosure I to PWSC(97-98)33
558CL - Planning and development studies on North West New Territories : consultants fees and site investigation
Breakdown of the estimate for consultants fees
|
Consultants staff costs
|
|
Estimated
man months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Planning study and Landscape and Visual Impact Assessment study
|
Professional
Technical
|
37.55
21.33
|
40
16
|
3
3
|
6.24
1.19 |
|
(b) Traffic and Transport Assessment study
|
Professional
Technical
|
21.60
16.13
|
40
16
|
3
3
|
3.59
0.90 |
|
(c) Engineering study
|
Professional
Technical
|
42.66
24.38
|
40
16
|
3
3
|
7.08
1.36 |
|
(d) Environmental Impact Assessment study
|
Professional
Technical
|
25.88
15.42
|
40
16
|
3
3
|
4.30
0.86 |
|
(e) Studies on Socio-Economic Assessment and Implementation
|
Professional
Technical
|
6.26
1.43
|
40
16
| |
3
3
|
1.04
0.08 |
|
(f) Supervision of site investigation
|
Professional
Technical
|
7.16
5.56
|
40
16
|
3
3
|
1.19
0.31
|
_____ |
|
|
Total Consultants Staff Cost
|
28.14
_____ |
MPS = Master Pay Scale
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 profits, 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 = $18,595 p.m.)
- The figures given above are based on estimates prepared by the Director of Territory Development in conjunction with the Director of Planning. We will only know the actual man months and fees when we have selected the consultants through the usual competitive lump sum fee bid system.
Enclosure II to PWSC(97-98)33
559CL - Planning and development studies on North East New Territories : consultants fees and site investigation
Breakdown of the estimate for consultants fees
|
Consultants staff costs
|
|
Estimated
man months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Planning study and Landscape and Visual Impact Assessment study
|
Professional
Technical
|
29.73
16.85 |
40
16
|
3
3
|
4.94
0.94 |
|
(b) Traffic and Transport Assessment study
|
Professional
Technical
|
16.85
12.55
|
40
16
|
3
3
|
2.80
0.70 |
|
(c) Engineering study
|
Professional
Technical
|
33.46
19.90
|
40
16
|
3
3
|
5.56
1.11 |
|
(d) Environmental Impact Assessment study
|
Professional
Technical
|
21.30
12.73
|
40
16
|
3
3
|
3.54
0.71 |
|
(e) Studies on Socio-Economic Assessment and Implementation
|
Professional
Technical
|
5.36
1.25
|
40
16
|
3
3
|
0.89
0.07 |
|
(f) Supervision of site investigation
|
Professional
Technical
|
4.81
3.59
|
40
16
|
3
3
|
0.80
0.20
______ |
|
|
Total Consultants Staff Cost
|
22.26
______ |
MPS = Master Pay Scale
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 profits, 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 = $18,595 p.m.)
- The figures given above are based on estimates prepared by the Director of Territory Development in conjunction with the Director of Planning. We will only know the actual man months and fees when we have selected the consultants through the usual competitive lump sum fee bid system.
Enclosure III to PWSC(97-98)33
560CL - Planning and development studies on Hong Kong South and Lamma Island : consultants fees and site investigation
Breakdown of the estimate for consultants fees
|
Consultants staff costs
|
|
Estimated
man months
|
Average
MPS
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million)
|
|---|
|
(a) Planning study and Landscape and Visual Impact Assessment study
|
Professional
Technical
|
23.83
13.62
|
40
16
|
3
3
|
3.96
0.76 |
|
(b) Traffic and Transport Assessment study
|
Professional
Technical
|
18.35
13.62
|
40
16
|
3
3
|
3.05
0.76 |
|
(c) Engineering study
|
Professional
Technical
|
22.63
13.44
|
40
16
|
3
3
|
3.76
0.75 |
|
(d) Environmental Impact Assessment study
|
Professional
Technical
|
11.92
7.17
|
40
16
|
3
3
|
1.98
0.40 |
|
(e) Studies on Socio-Economic Assessment and Implementation
|
Professional
Technical
|
4.69
1.08
|
40
16
|
3
3
|
0.78
0.06 |
|
(f) Supervision of site investigation
|
Professional
Technical
|
2.41
1.79
|
40
16 |
3
3
|
0.40
0.10
_____ |
|
|
Total Consultants Staff Cost
|
16.76
_____ |
MPS = Master Pay Scale
Notes :
- A multiplier factor of 3 is applied to the average MPS point to arrive at the full staff costs including the consultant's overheads and profits, 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 Territory Development in conjunction with the Director of Planning. We will only know the actual man months and fees when we have selected the consultants through the usual competitive lump sum fee bid system.
(JJ180)
