For discussion PWSC(97-98)1
on 23 April 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Territory Development
Civil Engineering - Land developmen 553CL - Feasibility study for intensification and extension of Tseung Kwan O
New Town

Members are invited to recommend to Finance Committee the upgrading of 553CL to Category A at an estimated cost of $34.9 million in money-of-the-day prices for carrying out a feasibility study and site investigation for the intensification and extension of the Tseung Kwan O New Town.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
553CL - Feasibility study for intensification and extension of Tseung Kwan O New Town

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PROBLEM

We need to investigate the feasibility of expanding the development capacity of Tseung Kwan O (TKO) New Town to help meet an increase in the territorial housing demand identified in the Territorial Development Strategy Review (TDSR).

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Housing and the Secretary for Planning, Environment and Lands, proposes to upgrade 553CL to Category A at an estimated cost of $34.9 million in money-of-the-day (MOD) prices for site investigation and engagement of consultants to carry out a feasibility study for the intensification and extension of the TKO New Town.

PROJECT SCOPE AND NATURE

3. The scope of 553CL comprises a feasibility study and site investigation works for the intensification and extension of the TKO New Town. The feasibility study includes the following specific studies -

1. a Planning study;
2. an Environmental Impact Assessment (EIA) study;
3. a Transport and Traffic Impact Assessment (T&TIA) study;
4. a Drainage Impact Assessment (DIA) study;
5. a Marine Impact Assessment (MIA) study; and
6. an Engineering study.

JUSTIFICATION

4. We originally planned to develop TKO as a new town with a total population capacity of 223 000 (later known as phase 1 development). This was based on the recommendations of the Junk Bay New Town Study which was completed in June 1982. Subsequently, in July 1986, the Administration confirmed the expansion of the TKO New Town to accommodate a larger population of up to 325 000 persons (known as the phases 1 and 2 development) after having decided to construct the TKO tunnel and to introduce either an MTR extension line or an additional external road to TKO.

5. We conducted the "TKO Feasibility Study of Opportunities for Further Development" in October 1988 in order to determine the new town’s potential for further development. The study, which was completed in May 1990, concluded that it was viable and feasible to further develop the new town to accommodate a potential population of 445 000 (known as the phases 1, 2 and 3 development). In 1995, the Director of Planning (D of Plan) estimated that the ultimate population of the TKO New Town upon the full development of phases 1, 2 and 3 would only reach 355 000 according to the updated "person-per-occupied flat" ratios projected by the Working Group on Population Distribution.

6. D of Plan completed the Territorial Development Strategy Review (TDSR) in mid 1996 which identified a need to increase the development potential of the TKO New Town (among other areas) in the medium to long term so as to help meet the increase in the territorial housing demand. In November 1996, the Administration approved a Development Statement (DS) for this area which recommended an increase in the ultimate population of the TKO New Town from 355 000 to 520 000. To achieve this population target, we need to increase the development intensity of some housing sites by up-zoning and to provide more housing sites by re-zoning as well as by further reclaiming about 103 hectares in the TKO Bay up to the current alignment of the proposed Cross-bay Bridge Road. D of Plan has also included in the DS a conceptual land-use plan to serve as a basis for the detailed planning and feasibility studies.

7. In order to cope with the envisaged 50% increase in the ultimate population and to optimise the development opportunities whilst minimising the likely environmental, traffic and visual impacts of the intensification and extension proposals at the same time, we need to carry out a planning study for the formulation of a land-use plan. We also need to conduct impact assessments and engineering studies to ascertain the feasibility of the engineering works. The feasibility study will also provide the necessary information to help us decide how and in what time frame to implement the engineering works. Apart from the study, we will carry out site investigation works to establish the soil properties and design parameters.

8. Due to insufficient in-house resources, DTD proposes to engage consultants to undertake the feasibility study and to supervise the associated site investigation works.

FINANCIAL IMPLICATIONS

9. We estimate the capital cost of the project to be $34.9 million in MOD prices (see paragraph 10 below), made up as follows -

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

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

11. We have derived the MOD estimates on the basis of the Government’s forecast of trend labour and construction prices for the period 1997 to 2000. We will award the proposed consultancy on a lump-sum basis with provision for inflation adjustment because the consultancy 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 because the contract period will not exceed 21 months.

12. The proposed study has no recurrent financial implications.

PUBLIC CONSULTATION

13. In late 1996, D of Plan consulted the public and the Sai Kung District Board about further developments at TKO in the context of the TDSR. No objection was received to the proposal that TKO be identified as a major strategic growth area. We will consult the Sai Kung District Board on the latest findings and development of the project, both during the course of the study and upon its completion.

ENVIRONMENTAL IMPLICATIONS

14. The proposed consultancy will have no adverse environmental implications. As part of the feasibility study, the consultants will conduct an environmental impact assessment to confirm the environmental impact of the proposed development and to identify all necessary environmental mitigation measures during both the construction and the operational phases. The estimated cost of the environmental impact assessment is $3.3 million and is included in the overall cost of the proposed consultancy.

LAND ACQUISITION

15. The study does not require land acquisition.

BACKGROUND INFORMATION

16. We upgraded 553CL to Category B in January 1997. We plan to start the proposed feasibility study in July 1997 for completion in December 1998.

17. We have formed and developed the greater part of the TKO New Town phase 1. The phase 2 reclamation and infrastructural works are underway. These will be completed in early 1998 and 2001 respectively. We started the phase 3 reclamation in August 1991 for completion in 2005. The initial population intake at TKO was about 8 000 in 1988 and is about 143 000 at present.

(KK198)

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Enclosure to PWSC(97-98)1

553CL - Feasibility study for intensification and extension of Tseung Kwan O New Town

Breakdown of the estimate for consultant’s fees

*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. 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.

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