PWSC(97-98)109
For discussion
on 11 February 1998

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Territory Development
Civil Engineering - Land development
561CL - Tin Shui Wai further development - engineering infrastructure and remaining site formation works

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 561CL, entitled "Tin Shui Wai further development - road junction improvement, site formation and main engineering infrastructure", to Category A at an estimated cost of $3,163.2 million in money-of-the-day prices; and

2. the retention of the remainder of 561CL, re-titled "Tin Shui Wai further development - remaining engineering infrastructure and site formation works", in Category B.

PROBLEM

For the further development of Tin Shui Wai (TSW) to cope with the demand for more housing sites, we need to improve some existing road junctions in the Development Zone (DZ) and form land and provide new engineering infrastructure in the Reserve Zone (RZ).

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Housing, proposes to upgrade part of 561CL to Category A at an estimated cost of $3,163.2 million in money-of-the-day (MOD) prices for the proposed road junction improvement, site formation and main engineering infrastructure in TSW.

PROJECT SCOPE AND NATURE

3. The scope of the part of 561CL we now propose to upgrade to Category A comprises -

1. improvement works to existing road junctions in the DZ (advance junction improvement works);

2. site formation works in areas 109 (part), 112, 115, 117 and 120 of the RZ;

3. dualling and reconstruction of Hung Tin Road (part), Tin Ying Road, Long Tin Road (part), Tin Tsz Road and Tin Wah Road, with construction of portions of affected adjoining roads;

4. construction of carriageways, footpaths, cycle tracks and Light Rail Transit reserve, including a terminus and right-of-way, in the RZ south area;

5. construction of four vehicular bridges at proposed grade-separated interchanges in the DZ, dualling of one existing vehicular bridge across Western Drainage Channel at Tin Wah Road and dualling of two existing vehicular bridges at Tin Ying Road;

6. construction of four footbridges in the RZ and a footbridge across Tin Tsz Road near Tin Cheung Road;

7. construction of six pedestrian subways in the RZ and extension of three existing pedestrian subways beneath Tin Ying Road;

8. construction of a sewage pumping station in area 101 and twin sewer rising mains;

9. the provision of sewers, drains, box culverts and landscaping works;

10. noise mitigation measures, including the provision of noise barriers, low noise road surface and window insulation with air conditioners for schools; and

11. an environmental monitoring and audit programme for items (a) to (j) above.

4.The part of 561CL to be retained in Category B comprises the following remaining works in the north-eastern RZ and north of Tin Wah Road to the west of Western Drainage Channel -

1. site formation works in areas 114, 118, 119 and 121 to 123;

2. construction of two vehicular bridges and one footbridge across the Western Drainage Channel;

3. construction of carriageways, footpaths and cycle tracks;

4. construction of a compensatory wetland;

5. the provision of ancillary drains, sewers, landscaping works and concrete lining to a section of the Western Drainage Channel; and

6. an environmental monitoring and audit programme for items (a) to (e) above.

JUSTIFICATION

5. The Administration decided in 1994 to further develop TSW as a major area for additional housing supply. In this regard, we have designated about 23 hectares of land in areas 3, 30 and 31 in the DZ and about 70 hectares of land (out of a total land area of 213 hectares) in the RZ for further development into residential areas. Upon full development by 2003, these areas will accommodate about 55 000 housing units for a population of about 175 000 people. In order to cater for the proposed additional developments in TSW, we need to provide the necessary engineering infrastructure in stages and in step with the phased completion of the building development.

6. The Director of Housing (D of H) commenced piling work in areas 3, 30 and 31 in the DZ in August 1996 with a target population intake in August 1999. D of H also commenced piling in area 102 of the RZ in July 1997 and plans to complete the construction works for public housing in this area by October 2000. Completion of the other public housing development in areas 105, 106, 110 and 111 will follow from February to July 2001. Sites earmarked for sandwich class housing or for private housing development in areas 103, 104, and 108 will be disposed of in 1998. In order to meet the building development programme, we need to start the construction of supporting engineering infrastructure in stages from October 1998 for completion in phases from August 1999 to end 2001.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $3,163.2 million in MOD prices (see paragraph 8 below), made up as follows -

			$ million
(a)	Advance junction improvement works		45.0
(b)	Site formation works		55.0
(c)	Roadworks		276.0
(d)	Vehicular bridges		585.0
(e)	Footbridges and pedestrian subways		270.0
(f)	Drainage works and box culverts		280.0
(g)	Sewerage works and sewage pumping station		130.0
(h)	Landscaping works		40.0
(i)	Noise mitigation measures		125.0
	(i) noise barriers	111.0
	(ii) low noise road surfacing	8.0
	(iii)indirect mitigation	6.0
(j)	Environmental monitoring and audit		27.0
(k)	Consultants?fees for		237.0
	(i) construction stage	28.0
	(ii) resident site staff costs	209.0
(l)	Contingencies		200.0
Sub-total			2,270.0	(at December 1996 prices)
(m)	Inflation allowance		893.2
Total			3,163.2	(in MOD prices)

Due to insufficient in-house resources, DTD proposes to employ consultants to supervise the project. A breakdown by man months of the estimate for consultants' fees is at the Enclosure.

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

9. We have derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices for the period from 1998 to 2003. We will tender the proposed works under standard remeasurement contracts because the works involve extensive earthwork and foundation works, the quantities of which may vary according to the actual ground conditions. The contracts will provide for inflation adjustments because the contract periods will exceed 21 months.

10. We estimate the annually recurrent expenditure to be $29.30 million, of which $2.67 million will be for sewerage works.

11. Based on the current level of sewage charges and water consumption, the proposed project by itself would lead to an increase in sewage charges of about 0.4%.

PUBLIC CONSULTATION

12. We consulted the Traffic and Transport Committee of the Yuen Long District Board on the Final Investigation Report of the TSW further development project on 7 January 1997. Members had no objections to the proposed works.

13. On 23 January 1997, we consulted the Environmental Improvement Committee of the Yuen Long District Board on the findings of the Environmental Impact Assessment (EIA) study¹ in respect of the engineering infrastructure project for TSW further development. Members had no adverse comments on the findings.

14. We published the Gazette notice for the advance junction improvement works and the main roadworks under Roads (Works, Use and Compensation) Ordinance on 5 September 1997 and 24 October 1997 respectively. We also published the Gazette notice for the construction of the sewage pumping station and sewage rising mains under the Water Pollution Control (Sewerage) Regulation on 24 October 1997. We received no objections to the proposed works.

ENVIRONMENTAL IMPLICATIONS

15. In February 1997, we completed an EIA study of the TSW further development. The EIA study recommended some mitigation measures which could reduce the environmental impacts of the proposed project to within the established standards and guidelines. These measures include the provision of direct noise mitigation measures in the form of noise barriers and low noise road surface (applied on about 4 kilometres of roads, namely Tin Ying Road, Hung Tin Road, Tin Tsz Road and Long Tin Road) as well as indirect noise mitigation measures in the form of window insulation and air conditioners to three existing schools.

16. Suitable environmental protection clauses will be stipulated in the works contracts to reduce short term construction impacts. We will fully incorporate into the detailed design and works contracts the mitigation measures and the environmental monitoring and audit programme recommended in the EIA study and ensure their timely implementation.

17. We presented the findings and recommendations of the full EIA report to the Advisory Council on the Environment (ACE) on 21 April 1997. ACE accepted the findings and recommendations of the report.

LAND ACQUISITION

18. This project does not require land acquisition.

BACKGROUND INFORMATION

19. We upgraded 561CL to Category B in June 1997.

20. We engaged consultants in November 1995 under 551CL "Tin Shui Wai further development - engineering investigations" to carry out a study to define the engineering works that are required to support the proposed housing development. The study, completed in March 1997, ascertained the engineering feasibility of the project and defined the scope and programme of the engineering works.

21. We subsequently engaged consultants in August 1997 to undertake the detailed design for the project under 562CL "Tin Shui Wai further development - engineering infrastructure and remaining site formation works : consultants' fees and site investigation". The consultants have completed the detailed design and drawings for those works planned to commence in October 1998. We will complete the proposed works in phases from August 1999 to end 2001 to tie in with the housing development programme.

22. The remainder of 561CL comprises works that do not need to be completed before the occupation of the housing sites in the RZ south area. We plan to implement these works in mid 2000 for completion by mid 2003.

Housing Bureau
February 1998

1. The EIA study was completed under 551CL "Tin Shui Wai development - engineering investigations".

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Enclosure to PWSC(97-98)109

561CL - Tin Shui Wai further development - engineering infrastructure and remaining site formation works

Breakdown of the estimate for consultants' fees

Consultants' staff costs			Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($ million)
(a)	Consultants' fees for construction stage
	(i) Contract administration	Professional Technical	120 90	40 16	3.0 3.0	19.9 5.0
	(ii) Preparation of as-built drawings	Professional Technical	7 34	40 16	3.0 3.0	1.2 1.9
(b)	Resident site staff costs	Professional Technical	722 3,200	40 16	2.1 2.1	84.0 125.0
	Total consultants' staff costs						237.0

*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. A multiplier factor of 2.1 is applied to the average MPS point in the case of site staff supplied by the consultants. (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 consultancy works for this project will be included as part of the overall consultancy agreement for the Tin Shui Wai further development.