PWSC(97-98)124
For discussion
on 17 February 1998
ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 703 - BUILDINGS
Support - Others
3GA - Science Park at Pak Shek Kok - phase 1
Members are invited to recommend to Finance Committee -
- the upgrading of part of 3GA, entitled "Science Park at Pak Shek Kok - phase 1 - site investigations and consultants' fees", to Category A at an estimated cost of $54.8 million in money-of-the-day prices; and
- the retention of the remainder of 3GA in Category B.
PROBLEM
We do not have sufficient in-house resources to carry out the planning of the phased development, site investigations, schematic planning and detailed design for the proposed Science Park at Pak Shek Kok so as to meet the target of opening the first phase of the Science Park in the second half of 2001.
PROPOSAL
2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Trade and Industry, proposes to upgrade part of 3GA to Category A at an estimated cost of $54.8 million in money-of-the-day (MOD) prices to carry out site investigations and to engage consultants to carry out the planning of the overall phased development, a schematic plan for phase 1, a detailed design study and contract documentation for the initial two buildings and associated landscaping and external works of the proposed Science Park at Pak Shek Kok.
PROJECT SCOPE AND NATURE
3. The full scope of 3GA comprises the following -
- construction of multi-tenant buildings for administration and general research and development (R&D) activities, R & D activities which require heavy floor loading facilities, special information technology or laboratory facilities;
- the provision of accommodation facilities for scientists and researchers who are not locally-based;
- parking and associated commercial facilities for the multi-tenanted buildings; and
- associated landscaping and external works.
4. The part of the project which we now propose to upgrade to Category A comprises -
- site investigations;
- consultancy services for -
- the planning of the phased development of the entire Science Park (including layout of the land lots, roads and landscaping);
- the schematic planning of phase 1 of the Science Park, including the provision of a master layout plan;
- a drainage impact assessment (DIA) study; and
- a detailed design study and contract documentation for the first two buildings (one for general R & D and administration and one for the accommodation of visiting scientists and researchers), associated landscaping and external works which should be in place to allow the opening of the Science Park in the second half of 2001.
JUSTIFICATION
5. In 1992 and 1995, the Industry Department carried out two consecutive consultancy studies to examine the case for developing a science park in Hong Kong (viz. the Hong Kong Science Park Study Stage One and Stage Two). Both studies confirmed the need for a Science Park. We issued the Hong Kong Science Park Study Stage Two Report for public consultation in October 1995 and there was general support for the establishment of a Science Park at Pak Shek Kok, Tai Po.
6. To take forward the Science Park project, the Planning Committee on Science Park (the Planning Committee), was set up in January 1997. The Committee was chaired by the Director-General of Industry and comprised prominent industrialists, academics, leaders from relevant business sectors, as well as representatives of relevant Government bureaux and departments. In November 1997, the Planning Committee submitted its recommendations to the Government.
7. The Planning Committee considers that Hong Kong needs to become a knowledge and technology-based economy in order to maintain and enhance our global competitiveness in the next millennium. A Science Park will form part of the essential infrastructural provision for Hong Kong industries to move up the technological ladder and develop technology-intensive and higher value-added business activities. The existence of a Science Park will also strengthen the links between the higher education, research, industrial and business communities, provide an improved working environment for technology-based firms and encourage these firms to develop operational networks with each other. The Park will also help position Hong Kong as a regional centre for R&D activities, innovation and technological development. Given the very keen competition from other economies in the Region, the Planning Committee recommends that the Science Park should be established as soon as possible before Hong Kong's competitive edge fades away.
8. We agree with the Planning Committee on the need to set up a Science Park as a matter of urgency. Since all the infrastructural provisions in the Pak Shek Kok Development Area required for the Science Park site will be ready by mid-2001, we agree with the Planning Committee that the target opening date of the Science Park phase 1 should be set for the second half of 2001.
9. We need to start preparatory work in early 1998 if we are to meet the target opening date. This will include the preparation of the master layout plan of the Science Park - phase 1, site investigations and detailed design of the initial buildings and associated landscaping and external works. However, the Director of Architectural Services does not have sufficient resources in-house to carry out the preparatory work as planned. To ensure timely delivery of the project, we need to engage consultants to perform the preparatory design work.
10. We consider it necessary to construct the general R&D multi-tenant cum office administration building ahead of other multi-tenant buildings. This is because we need to house the administration office of the future Science Park Corporation on-site for operational reasons. We also expect the initial demand for premises for general R&D activities to be greater than that for premises designed for specific industries with special requirements, e.g., those which require heavy floor loadings. Moreover, the R&D activities of certain types of industries, e.g. information technology firms can be accommodated in the general R&D building in the interim period.
11. To address the operational needs of tenants and to enhance the attractiveness of the Science Park, we also consider it important to have in place appropriate accommodation facilities, on-site or nearby when the Science Park opens. It will be difficult for tenants to secure short-term tenancies in the property market for visiting scientists and researchers who would only work in the Science Park on a short-term basis. Besides, it is not uncommon for people engaged in R&D activities to work at irregular hours. Since the Pak Shek Kok Development Area will be relatively isolated, especially in the early phase of its development, transport to and from the site at various odd hours could pose a problem to these scientists and researchers who have yet to familiarise themselves with the local situation. Moreover, experience of some successful science parks shows that availability of on-site or contiguous accommodation facilities helps to create the right sort of community, culture and clustering effect to facilitate active exchange of ideas and networking.
FINANCIAL IMPLICATIONS
12. We estimate the cost of site investigations and consultants' fees which we now propose to upgrade to Category A to be $54.8 million in MOD prices (see paragraph 13 below), made up as follows -
|
|
$ million
|
|
|
(a)
|
Site investigations
|
|
1.5
|
|
|
(b)
|
Consultants' fees
|
|
38.5
|
|
|
(i) environmental engineering works
|
0.7
|
|
|
|
(ii) drainage impact assessment
|
1.5
|
|
|
|
(iii) planning of the phased development
|
0.6
|
|
|
|
(iv) schematic design
|
0.9
|
|
|
|
(v) detailed design
|
34.8
|
|
|
|
(c)
|
Contingencies
|
|
4.0
|
|
|
|
|
_____
|
|
|
Sub-total
|
|
44.0
|
(at December 1996 prices) |
|
(d)
|
Inflation allowance
|
|
10.8
|
|
|
|
|
_____
|
|
|
Total
|
|
54.8
|
(in MOD prices) |
|
|
|
_____
|
|
A breakdown by man months of the cost estimate for consultants' fees is at the Enclosure.
13. Subject to approval, we will phase the expenditure as follows -
|
Year
|
$ million
(Dec 1996)
|
Price
adjustment
factor
|
$ million
(MOD) |
|
1998 - 99
|
17.7
|
1.16358
|
20.6 |
|
1999 - 2000
|
19.6
|
1.26830
|
24.9 |
|
2000 - 01
|
6.7
|
1.38244
|
9.3 |
|
_____
|
|
_____ |
|
44.0
|
|
54.8 |
|
_____
|
|
_____ |
14. We derived the MOD estimates on the basis of Government's forecast of trend labour and construction prices for the period 1998 to 2001. We will award the proposed consultancy on a lump sum basis with provision for inflation adjustment.
15. The proposed site investigations and consultancy services will not give rise to any annually recurrent expenditure.
PUBLIC CONSULTATION
16. The proposal to establish a Science Park at Pak Shek Kok received general support during public consultation on the Hong Kong Science Park Study Stage Two Report between October and December 1995. We briefed the Provisional Legislative Council Panel on Trade and Industry and the Industry and Technology Development Council 1 on the recommendations of the Planning Committee on 12 December 1997. Both supported the project. We also consulted the Sha Tin Provisional District Board and the Tai Po Provisional District Board on a new Outline Zoning Plan (OZP) for the future Pak Shek Kok Reclamation Area which included the Science Park site on 16 December 1997 and 6 January 1998 respectively. The two Boards have no objections to the proposed establishment of a Science Park at Pak Shek Kok. The OZP will be gazetted for public inspection under the Town Planning Ordinance around March 1998.
17. Both industrialists and the academics have expressed support for the Science Park project. We expect the general public will welcome the project which will help create additional job opportunities and maintain Hong Kong's global competitiveness.
ENVIRONMENTAL IMPLICATIONS
18. The proposed design study will not have any adverse environmental implications. An Environmental Impact Assessment (EIA) for the entire Pak Shek Kok Development including the Science Park is being carried out by consultants engaged by the Director of Territory Development. They will address various environmental issues. The EIA will also identify the necessary mitigation measures to ensure the Science Park development would comply with the established environmental criteria.
LAND ACQUISITION
19. The proposed site investigations and consultancy services do not require any land acquisition.
BACKGROUND INFORMATION
20. The intention is for the Science Park to occupy a total area of some 22 hectares and to be developed in three phases - eight hectares for phase 1 and seven hectares each for phases 2 and 3. The rate at which each phase will be developed will depend on the market demand for the Science Park facilities, over time. The Park will provide office premises in multi-tenant buildings for rental to technology-based companies and land plots for lease to firms which wish to construct their own purpose-built premises for intensive R&D activities. Ancillary supporting facilities, including restaurants, retail services and on-site residential accommodation will be provided. The Science Park will be a low-density development with an average plot ratio of 2.5 to create a pleasant park-like environment in line with the international norm in order to attract local as well as overseas high-tech firms and researchers. This plot ratio is in line with the Revised Hong Kong Planning Standards and Guidelines approved by the Town Planning Board. Apart from physical facilities, the Science Park will develop linkages with local and overseas higher education institutions, other science parks and with business, financial and industrial communities to facilitate technology transfer and commercialisation of the results of R&D activities.
21. We intend to construct the buildings, infrastructure and other physical facilities for Science Park phase 1 as a public works project and transfer these assets on their completion to the Hong Kong Science Park Corporation (the Corporation) for future operation and management purposes. The Corporation will be a new statutory corporation to be set up to take over the planning, running and development of the Science Park. We intend to submit an enabling bill to establish the Corporation to the Legislative Council in the coming legislative session. Given the lead time required to complete such legislative procedures, a Provisional Hong Kong Science Park Company Limited (the Company) will be set up to perform the role and functions of the statutory corporation in the interim period. The Company will be dissolved on the date the Corporation comes into existence.
22. We upgraded 3GA to Category B in January 1998. We plan to start site investigations and the proposed consultancies in July 1998 so that, the study on the overall development planning of the entire Science Park, the detailed feasibility study for phase 1 of the Science Park and the detailed design study of the initial two buildings, landscaping and external works can be completed by November 1999. When the detailed design is completed, we will seek Members' approval for the construction costs of the initial buildings, landscaping and external works. We aim to complete these works by mid-2001 to enable the opening of phase 1 of the Science Park in the second half of 2001.
Trade and Industry Bureau
February 1998
(LL335)
1.The Industry and Technology Development Council is a non-statutory advisory body which advises the Government on the overall development of industry and technology in Hong Kong.
Enclosure to PWSC(97-98)124
3GA - Science Park at Pak Shek Kok - phase 1
DETAILS OF CONSULTANTS' FEES
Breakdown of estimates of consultants?fees
|
Consultants staff cost
|
|
Estimated
man
months
|
Average
MPS*
salary
point
|
Multiplier
factor
|
Estimated
fee
($ million) |
|
(I) Planning of the phased development, schematic planning, detailed design and tender documentation
|
|
|
|
|
|
|
(a) Architectural discipline
|
Professional
Technical
|
65
133
|
40
16
|
3.0
3.0
|
10.8
7.4 |
|
(b) Structural engineering discipline
|
Professional
Technical
|
30
32
|
40
16
|
3.0
3.0
|
5.0
1.8 |
|
(c) Building services engineering discipline
|
Professional
Technical
|
20
30
|
40
16
|
3.0
3.0
|
3.3
1.7 |
|
(d) Quantity surveying discipline
|
Professional
Technical
|
25
38
|
40
16
|
3.0
3.0
|
4.2
2.1 |
|
|
|
|
|
_____ |
|
|
|
|
Sub-total
|
36.3 |
|
|
|
|
|
_____ |
|
(II) Works by other specialists
|
|
|
|
|
|
|
(a) Environmental engineering works and drainage impact assessment
|
Professional
|
13
|
40
|
3.0
|
2.2 |
|
|
|
|
|
_____ |
|
|
|
|
Total
|
38.5 |
|
|
|
|
|
_____ |
*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 consultant's overheads and profit, as the staff will be employed in the consultant's offices. (At 1.4.96, MPS pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 p.m.) A multiplier factor of 2.1 is applied in the case of site staff supplied by the consultant.
(2) 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.
(LL335)
