PWSC(97-98)112
For discussion
on 11 February 1998


ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Education - Secondary
165ES - Secondary school in area 110, Tin Shui Wai

Members are invited to recommend to Finance Committee the upgrading of 165ES to Category A at an estimated cost of $123.5 million in money-of-the-day prices for the construction of a secondary school in area 110, Tin Shui Wai.

PROBLEM

The Director of Education (D of E) forecasts that there will be a shortfall of 216 secondary school classes in the territory by 2001.

PROPOSAL

2. The Director of Architectural Services, with the support of the Secretary for Housing, proposes to upgrade 165ES to Category A at an estimated cost of $123.5 million in money-of-the-day (MOD) prices for the construction of a secondary school in area 110, Tin Shui Wai.

PROJECT SCOPE AND NATURE

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

  1. 30 classrooms;

  2. 16 special rooms;

  3. three 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. a multi-purpose area;

  11. an assembly hall; and

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

JUSTIFICATION

4. D of E forecasts that by 2001, the demand and supply of secondary school classes will be 9 608 and 9 340 respectively. Upon completion of 221ES "Secondary school in public housing estate, phase 1, Aldrich Bay reclamation" and 223ES "Secondary school in area 31, Tung Chung" in 2000, this shortfall of 268 secondary school classes in the territory will be reduced by 52 classes to 216 classes in 2001.

5. In order to reduce the projected shortfall of secondary school classes and to phase out floating classes from Secondary One to Secondary Five levels by 2000 in accordance with Government policy, we propose to construct a secondary school in area 110, Tin Shui Wai. This will further reduce the projected shortfall of 216 secondary school classes by 26 classes to 190 classes. We are planning to construct more schools in the territory to meet the remaining shortfall.

FINANCIAL IMPLICATIONS

6. We estimate the capital cost of 165ES to be $123.5 million in MOD prices (see paragraph 7 below), made up as follows -

$ million


(a) Piling

10.8


(b) Building

46.0


(c) Building services

11.0


(d) Drainage and external works

10.7


(e) Contingencies

7.5


(f) Housing Authority on-cost

1.7



_____


Sub-total

87.7

(at December
1996 prices)

(g) Inflation allowance

35.8



_____


Total

123.5

(in MOD
prices)

_____


The construction floor area of this project is 11 200 square metres. The construction unit cost, excluding " Housing Authority on-cost" but including "Contingencies", is $7,679 per square metre at December 1996 prices. A comparison of the standard cost of a secondary school with the project estimate of this school is at the Enclosure.

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

Year

$ million
(Dec 1996)

Price
adjustment
factor

$ million
(MOD)

1999 - 2000

8.4

1.26830

10.7

2000 - 01

53.7

1.38244

74.2

2001 - 02

25.6

1.50686

38.6

_____


_____

87.7


123.5

_____


_____

8. We derived the MOD estimates on the basis of Government's forecast of trend labour and construction prices for the period 1999 to 2002. 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.

9. We estimate the annually recurrent expenditure for the school to be $34.0 million. As the new school will be operated as an aided school, the sponsoring body will bear the costs of furniture and equipment, estimated at $9.1 million.

PUBLIC CONSULTATION

10. 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

11. 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 165ES. 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

12. The project does not require land acquisition.

BACKGROUND INFORMATION

13. We upgraded 165ES 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

(LL325)

Enclosure to PWSC(97-98)112

A comparison of the standard cost of a secondary school project with the estimated cost of 165ES

Standard cost*

165ES



$ million
(at Dec 1996 prices)


(a) Piling

10.8

10.8


(b) Building

46.0

46.0


(c) Building services

11.0

11.0


(d) Drainage and external works

7.3

10.7

(See note A)

(e) Contingencies

7.4

7.5


(f) Housing Authority on-cost

-

1.7

(See note B)

_____

_____


Total

82.5

87.7



_____

_____


*Assumptions for standard cost

  1. This is the standard cost for the new design of secondary schools with the full schedule of accommodation as set out in paragraph 3 of the paper. It is $14.4 million higher than the old standard cost at $68.1 million.

  2. No site formation work/geotechnical work 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 138 nos. of steel H-piles of an average depth of 30 metres.

  4. Provisions for the site safety of 2% of the estimated contract sum (which does not attract contingencies) is included in the building cost.

  5. Cost for drainage and external works is for a standard school site area of 6 950 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.

(LL325)