PWSC(97-98)111
For discussion
on 11 February 1998

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Education - Primary
195EP - Primary school in area 110, Tin Shui Wai

Members are invited to recommend to Finance Committee the upgrading of 195EP to Category A at an estimated cost of $109.1 million in money-of-the-day prices for the construction of a primary school in area 110, Tin Shui Wai.

PROBLEM

The Director of Education (D of E) forecasts that there will be a shortfall of 175 primary whole-day classes in school zone 316 (Tin Shui Wai) by 2001.

PROPOSAL

2. The Director of Architectural Services, with the support of the Secretary for Housing, proposes to upgrade 195EP to Category A at an estimated cost of $109.1 million in money-of-the-day (MOD) prices for the construction of a primary school in area 110, Tin Shui Wai.

PROJECT SCOPE AND NATURE

3. The proposed primary school will adopt the latest schedule of accommodation. It will have -

1. 30 classrooms;

2. six special rooms;

3. four remedial teaching rooms;

4. a guidance activity/interview room;

5. two interview rooms;

6. staff rooms and a staff common room;

7. a student activity centre;

8. a library;

9. a conference room;

10. an assembly hall;

11. a multi-purpose area; and

12. ancillary accommodation including a lift and relevant facilities for the handicapped.

JUSTIFICATION

4. In school zone 316 (Tin Shui Wai), there are at present eight primary schools providing a total of 240 classes. D of E forecasts that by 2001, the demand for whole-day primary school classes will be 655 classes. With the completion of eight primary schools in school zone 316 from 1999 to 2001, the shortfall will be reduced to 175 classes in 2001. To implement the policy on whole-day schooling and to alleviate the shortfall, we propose to provide one more primary school in this school zone in 2001 which will reduce the shortfall to 145 classes. We are planning to construct more schools in this school zone to further reduce the shortfall.

FINANCIAL IMPLICATIONS

5. We estimate the capital cost of the project to be $109.1 million in MOD prices (see paragraph 6 below), made up as follows -

	$ million
(a) Piling	9.3
(b) Building	40.5
(c) Building services	9.0
(d) Drainage and external works	10.4
(e) Contingencies	6.7
(f) Housing Authority on-cost	1.5
	_____
Sub-total	77.4	(at December 1996 prices)
(g) Inflation allowance	31.7
	_____
Total	109.1	(in MOD prices)
	_____

The construction floor area of 195EP is 9 630 square metres. The construction unit cost of 195EP, excluding "Housing Authority on-cost" but including "contingencies" is $7,882 per square metre at December 1996 prices. A comparison of the standard cost of a primary school with the estimated cost of this school is at the Enclosure.

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

Year	$ million (Dec 1996)	Price adjustment factor	$ million (MOD)
1999 - 2000	7.0	1.26830	8.9
2000 - 01	47.3	1.38244	65.4
2001 - 02	23.1	1.50686	34.8
	_____		_____
	77.4		109.1
	_____		_____

7. We derived the MOD estimates on the basis of Government's forecast of trend labour and construction prices for the period 1999 to 2003. In order to tie in with the overall public housing development programme in area 110, Tin Shui Wai, we will entrust the construction of the school to the Housing Authority which will incorporate the piling contract and building contract for the school into the respective housing estate development contracts. The contracts for the school construction will be on a lump-sum basis with provision for price fluctuation because the contract period will be longer than 21 months.

8. We estimate the additional annually recurrent expenditure for the school to be $16.3 million. As the new school will be operated as an aided school, the sponsoring body will bear the costs of furniture and equipment, estimated to be $4.1 million.

PUBLIC CONSULTATION

9. We consulted the Social Services and Publicity Committee of the Yuen Long Provisional District Board on 12 January 1998. Members supported the project.

ENVIRONMENTAL IMPLICATIONS

10. The Director of Environmental Protection vetted the Preliminary Environmental Review (PER) and further traffic noise impact assessment conducted in January 1996 and November 1997 respectively by the consultants of the Director of Housing (D of H) on 195EP. Both the PER and the assessment concluded that the proposed school will not be subject to adverse environmental impacts. For short term construction impacts, we will control noise, dust and site run-off to within established standards and guidelines through the implementation of mitigation measures in relevant works contracts.

LAND ACQUISITION

11. The project does not require land acquisition.

BACKGROUND INFORMATION

12. We upgraded 195EP to Category B in July 1996. D of H has completed site investigation for the project as part of the housing development for area 110 in Tin Shui Wai and is finalising the working drawings and tender documents using in-house staff resources. D of H plans to start the construction works for the project in April 1999 for completion in June 2001 to tie in with the overall housing development in area 110, Tin Shui Wai.

Housing Bureau
February 1998

(DD1177)

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Enclosure to PWSC(97-98)111

A comparison of the standard cost of a primary school project with the estimated costs of 195EP

	Standard cost*	195EP
	$ million (at Dec 1996 prices)
(a) Piling	9.3	9.3
(b) Building	40.5	40.5
(c) Building services	9.0	9.0
(d) Drainage and external works	7.5	10.4	(See note A)
(e) Contingencies	6.6	6.7
(f) Housing Authority on-cost	-	1.5	(See note B)
	____	____
Total	72.9	77.4
	____	____

*Assumptions for standard cost

1. This is the standard cost for the new design of primary schools with the full schedule of accommodation as set out in paragraph 3 of the paper. It is $13.9 million higher than the old standard cost at $59 million.

2. No site formation works/geotechnical works is required as it is normally carried out by other government departments under a separate engineering vote before the handing-over of the project site.

3. Piling cost is based on 128 nos. of steel H-piles at an average depth of 30 metres.

4. Site safety provisions of 2% of the estimated contract sum (excluding contingencies) is included in the building cost.

5. Cost for drainage and external works are for a standard school site area of 6 200 square metres built on a flat site. No diversion of existing utilities or noise mitigation measures are required.

6. No consultancy services are required.

7. Furniture and equipment cost is excluded as it is usually borne by the sponsoring body.

8. The standard cost for comparison purpose is subject to review regularly. We will review, and revise if necessary, the standard cost which should be adopted for future projects.

Notes

1. The school is to be built as part of a phase of a public housing estate. The drainage and external works costs are estimated on the basis of the gross floor area of the school building as a proportion of the total gross floor area for the subject phase of the estate.

2. There is a standard arrangement to reserve 2% on-costs, for administrative and supervisory works, for projects entrusted to the Housing Authority.

(DD1177)