PWSC(97-98)118
For discussion
on 11 February 1998
ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Medical Subventions
33MM - Kowloon Hospital - phase 1 redevelopment
Members are invited to recommend to Finance Committee the approval of a commitment of $1,083.3 million in money-of-the day prices for the phase 1 redevelopment of Kowloon Hospital.
PROBLEM
The Kowloon Hospital (KH) has insufficient space for clinical use and treatment facilities which do not meet the present day service requirement of a modern hospital.
PROPOSAL
2. The Hospital Authority (HA), with the support of the Secretary for Health and Welfare, proposes to create a commitment of $1,083.3 million in money-of-the day (MOD) prices for the phase 1 redevelopment of KH.
PROJECT SCOPE AND NATURE
3. The project involves the demolition of three existing ward blocks D,
E and F, two minor staff quarters and a staff recreation room to make way for the construction of a new twelve-storey building comprising -
- a podium of three floors plus a basement; and
- an eight-storey block on top of the podium.
4. The podium and new building will provide -
- 528 beds for respiratory medical, rehabilitation, and psychiatry treatment; and
- ancillary diagnostic and treatment services and facilities including a Diagnostic Radiology Department, a Dietetic Department, a Pathology Department, an Allied Health Department, a Central Sterile Supply Department, a Central Medical Records Department, Administration Offices and a Building Services Unit.
JUSTIFICATION
5. KH, with a current complement of 975 beds, provides a range of services covering in-patient, day-patient and specialist out-patient services for respiratory medical, rehabilitation and psychiatric cases. It also serves as the main support base for convalescent cases from Queen Elizabeth Hospital. At present, KH has a total of 17 blocks, which were all built between 1925 and 1965 and scattered around the hospital compound. Owing to ageing, out-dated design and the scattered distribution of the hospital blocks, various problems have emerged, including -
- dilapidated physical condition of the structures evidenced by severe leakages and blockages of sewage pipes;
- defective electrical facilities leading to intermittent power failures;
- substandard fire services installations;
- obsolete building services which are near the end of their intended service life;
- overcrowding in the ward blocks and a general lack of space for other support facilities; and
- inefficient workflow caused by the scattered locations of offices, wards and diagnostic and treatment areas.
6. The above problems have seriously affected the delivery of quality medical services to patients and have necessitated increasingly costly maintenance and repairs to keep the hospital in a serviceable condition. As a long term solution to the above problems and to upgrade KH to the standards required of a modern hospital, there is an urgent need for the redevelopment of KH. The proposed phase 1 redevelopment programme involves the construction of a new building with 528 beds and the demolition of three ward blocks D, E and F, two minor staff quarters and a staff recreation room. Owing to dilapidation and inherent structural constraints, major conversion or refurbishment of these old buildings is neither practicable nor cost-effective. The subsequent phases of redevelopment of the remaining blocks are still under planning. These will be developed in parallel with other compatible GIC uses in order to maximise the development potential of the whole site.
7. The proposed new block will provide 272 general beds and 256 psychiatric beds. The majority of these beds will be used for the reprovisioning of beds in the existing blocks D, E, F and other old blocks. Taking into account the intended relocation of 54 infirmary beds to the Kowloon Medical Rehabilitation Centre in around 2000, the total number of beds in KH will be increased to 1 026 after the phase 1 redevelopment including a net increase of 105 psychiatric beds. Additional space will be available for the introduction of new services including pathology service and a blood bank. Ancillary and supporting services will be integrated to promote functional flow and efficiency. During the construction period, the hospital will continue to provide the same level of services to patients through suitable decanting arrangements.
FINANCIAL IMPLICATIONS
8. The Director of Architectural Services (D Arch S) and HA estimate the total project cost to be $1,083.3 million in MOD prices (see paragraph 9 below), made up as follows -
|
|
$ million
|
|
|
(a) Site work and demolition
|
|
28.5
|
|
|
(b) Piling
|
|
27.3
|
|
|
(c) Building
|
|
273.0
|
|
|
(d) Building services
|
|
198.3
|
|
|
(e) Drainage and external works
|
|
10.6
|
|
|
(f) Furniture and equipment
|
|
86.4
|
|
|
(g) Consultants' fees
|
|
18.5
|
|
|
(h) Contingencies
|
|
64.2
|
|
|
|
_____
|
|
|
Sub-total
|
|
706.8
|
(at December
1996 prices) |
|
(i) Inflation allowance
|
|
376.5
|
|
|
|
_____
|
|
|
Total
|
|
1,083.3
|
(in MOD
prices) |
|
|
_____
|
|
The construction floor area (CFA) of the project is 38 000 square metres. The construction unit cost, excluding "Furniture and equipment" and "Consultants' fees" but including "Contingencies" is $15,839 per square metre at December 1996 prices. A breakdown of the cost estimates for consultants' fees and related services is at the Enclosure.
9. Subject to approval, we will phase the expenditure as follows -
|
Year
|
$ million
(Dec 1996)
|
Price
adjustment
factor
|
$ million
(MOD) |
|
1998 - 1999
|
10.0
|
1.16358
|
11.6 |
|
1999 - 2000
|
80.0
|
1.26830
|
101.5 |
|
2000 - 2001
|
150.0
|
1.38244
|
207.4 |
|
2001 - 2002
|
210.0
|
1.50686
|
316.4 |
|
2002 - 2003
|
130.0
|
1.64248
|
213.5 |
|
2003 - 2004
|
90.0
|
1.79030
|
161.1 |
|
2004 - 2005
|
36.8
|
1.95143
|
71.8 |
|
_____
|
|
_____ |
|
706.8
|
|
1,083.3 |
|
_____
|
|
_____ |
10. We derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices for the period from 1998 to 2005. We will tender the works by way of a fixed-price lump-sum contract for piling and another lump-sum contract with provision for price fluctuation for the superstructure.
11. There will be no additional staff cost as HA will re-deploy existing staff to provide the required additional services to the patients. HA, in consultation with the Director of Electrical and Mechanical Service and D Arch S, estimates the net additional annually recurrent expenditure of the project to be $18.8 million at December 1996 prices, made up as follows -
|
$ million
|
|
|
|
|
|
Light and power
|
7.55
|
|
|
|
|
|
Repairs and maintenance
|
11.25
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
18.80
|
|
|
|
|
PUBLIC CONSULTATION
12. We consulted the Kowloon City Provisional District Board in November 1997. Members of the board supported the proposed re-development project.
ENVIRONMENTAL IMPLICATIONS
13. In March 1996, D Arch S completed a Preliminary Environmental Review (PER) of the project and concluded that there would be limited adverse impact on the environment. The Director of Environmental Protection vetted the PER and agreed that an Environmental Impact Assessment would not be required. D Arch S has conducted a survey to assess the likely disturbance of asbestos containing material (ACM) due to demolition works. He will remove and dispose of any ACM prior to the commencement of any demolition works in strict compliance with relevant statutory requirements, codes of practice and guidelines. HA will equip the new building with air-conditioning to improve the internal noise environment. HA will follow relevant codes of practice and guidelines on the disposal of clinical, chemical and liquid wastes.
14. For short-term impacts during construction, D Arch S will control dust, noise and site run-off to within established standards and guidelines through the implementation of appropriate mitigation measures in relevant contracts.
LAND ACQUISITION
15. This project does not require land acquisition.
BACKGROUND INFORMATION
16. We have completed site investigation for the project. We are finalising the architectural drawings using in-house staff resources. We plan to start the demolition works in April 1998 and complete the building works in December 2001.
Health and Welfare Bureau
January 1998
Enclosure to PWSC(97-98)118
33MM - Kowloon Hospital - phase 1 redevelopment
Details of Consultants' fees and trading fund charges
|
Breakdown of the estimate for consultants' fees
|
|
|
Estimated man months
|
Average MPS* salary point
|
Multiplier factor
|
Estimated fee
($ million) |
|
(A) Consultants' staff costs
|
|
(I) Quantity Surveying discipline
|
|
|
|
|
|
|
(a) Pre-contract services (tender documentation, tender assessment)
|
Professional
Technical
|
25.8
53.7
|
40
16
|
3.0
3.0
|
4.3
3.0 |
|
(b) Post-contract services (contract administration, account finalisation)
|
Professional
Technical
|
25.8
53.7
|
40
16
|
3.0
3.0
|
4.3
3.0 |
|
(II) Structural engineering discipline
|
Technical
|
9.0
|
16
|
3.0
|
0.5 |
|
|
|
|
|
|
|
|
|
|
Sub-total
|
15.1
|
|
(B) Charges by the Electrical & Mechanical Services Trading Fund
(fees for advisory services on installation, testing, commissioning and maintenance period monitoring)
|
|
|
|
3.0 |
|
(C) Charges by the Office of the Telecommunications Authority Trading Fund
(fees for advisory services on planning, design and installation of telecommunication system) |
|
|
|
0.4 |
|
|
|
|
Total
|
18.5 |
*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 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.)
- The figures given above are based on estimates prepared by the Director of Architectural Services. We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive bidding system.
- Since the establishment of EMSTF on 1 August 1996 under the Trading Funds Ordinance, government departments are charged for design and technical consultancy services for electrical and mechanical installations provided by the Electrical and Mechanical Services Department (EMSD). The figures above are based on estimates prepared by the Director of Architectural Services. The actual cost for the service charges is subject to further negotiation between the Government and the EMSD.
- Since the establishment of the OFTATF on 1 June 1995 under the Trading Funds Ordinance, government departments are charged for design and technical consultancy services for telecommunication system installations provided by the Office of the Telecommunications Authority (OFTA). The figures above are based on estimates prepared by the Director of Architectural Services. The actual cost for the service charges is subject to further negotiation between the Government and the OFTA.
