PWSC(97-98)134
For discussion
on 17 February 1998

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories North Development
Civil Engineering - Land development
183CL - Tai Po development - remaining works

Members are invited to recommend to Finance Committee the upgrading of 183CL, retitled "Ting Kok Road upgrading stage 2 and associated works", to Category A at an estimated cost of $268 million in money-of-the-day (MOD) prices.

PROBLEM

The section of Ting Kok Road between Shuen Wan and Tai Mei Tuk does not meet the current standard for highways. In addition, there is no sewerage system serving the adjoining areas.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade 183CL to Category A at an estimated cost of $268 million in money-of-the-day (MOD) prices to improve a section of Ting Kok Road between Shuen Wan and Tai Mei Tuk and provide a sewerage system along this section.

PROJECT SCOPE AND NATURE

3. The proposed project involves the upgrading of Ting Kok Road - stage 2 and associated sewerage works. The scope of the project comprises -

1. widening and improving approximately 3.5 kilometres of Ting Kok Road and the associated footpath and cycling tracks between Shuen Wan and Tai Mei Tuk;

2. construction of box culverts and stormwater drains;

3. laying a trunk sewer and rising mains along Ting Kok Road from Tai Mei Tuk to Sam Mun Tsai Road;

4. constructing two sewerage pumping stations;

5. the provision of noise mitigation measures; and

6. associated landscaping works.

JUSTIFICATION

4. The section of Ting Kok Road between Shuen Wan and Tai Mei Tuk is a two-lane single carriageway. We constructed this section as a rural road before the development of Tai Po as a new town. Due to the then rural nature of the adjoining areas, we did not incorporate sewers or storm drains into the road design. Given recent developments in the area, the existing road has become sub-standard in terms of width, curvature and the provision of drainage facilities. In addition, the volume of traffic on Ting Kok Road has increased significantly in recent years because a large number of visitors are attracted to the country park areas in the vicinity. We need to bring this section of Ting Kok Road up to the current highway standards for two-lane single carriageways because of safety considerations. In conjunction with the proposed roadworks, we will install stormwater drains and construct box culverts to improve the existing drainage system.

5. There is no sewerage system serving the households along this section of Ting Kok Road. At present, the residents dispose of sewage through septic tanks or directly into Tolo Harbour. This has caused sanitation problems and has led to a polluted environment. We need to extend the existing sewerage system at Shuen Wan to Tai Mei Tuk to serve these households and future private developments in the area. As the road is generally at a level lower than the existing sewer connection point, we need to construct two pumping stations and rising mains to convey the sewage to an existing sewage pumping station at Shuen Wan which is connected to the Tai Po Sewage Treatment Plant.

FINANCIAL IMPLICATIONS

6. We estimate the capital cost of the project to be $268 million in MOD prices (see paragraph 7 below), made up as follows -

			$ million
(a)	Roadworks		80.0
(b)	Stormwater drains		30.4
(c)	Box culverts		14.9
(d)	Rising mains		13.2
(e)	Sewer		10.7
(f)	Sewage pumping stations		7.2
(g)	Noise mitigation measures (see paragraph 16 below)		3.6
(h)	Landscaping works		6.0
(i)	Consultants' fees for		20.7
	(i) construction stage	2.4
	(ii) resident site staff costs	18.3
(j)	Contingencies		18.7
	Sub-total		205.4		(at December 1996 prices)
(k)	Inflation allowance		62.6
	Total		268.0		(in MOD prices)

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

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

Year	$ million (Dec 1996)	Price adjustment factor	$ million (MOD)
1998 - 1999	50.0	1.16358	58.2
1999 - 2000	70.0	1.26830	88.8
2000 - 2001	62.0	1.38244	85.7
2001 - 2002	23.4	1.50686	35.3
	205.4		268.0

8. We have derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices for the period 1998 to 2002. We will tender the proposed civil, electrical and mechanical works under lump-sum contracts because we have firm quantities for the majority of the works. As the contract periods exceed 21 months, the contracts will provide for inflation adjustments.

9. We estimate the annually recurrent expenditure of the project to be $2.9 million, of which $1.68 million will be for the sewerage works.

10. Based on the current level of sewage charges and current water consumption, the implication of the proposed sewerage works on sewage charges will be negligible in real terms.

PUBLIC CONSULTATION

11. We consulted the Traffic and Transport Committee of the Tai Po District Board on the proposed works on 6 July 1995. Members had no objection to the proposal.

12. We gazetted the proposed roadworks under the Roads (Works, Use and Compensation) Ordinance and the proposed sewerage works under the Water Pollution Control (Sewerage) Regulation on 3 January 1997. We received one objection to each gazettal from the developer of Tai Po Town Lot (TPTL) 140 on the following grounds -

1. the proposed roadworks would cause flooding to TPTL 140;

2. the developer would not be able to carry out the development as planned and would be unable to utilise the full development potential of the lot. The developer claimed that the future road level fronting the lot would be 1.8 metres higher than the original intended level of the ground floor of the proposed development and that such a difference in levels would affect the value of the proposed development;

3. the developer would not be able to carry out some of the works required by Government under the lease conditions ¹and

4. no provision has been made for connecting TPTL 140 to the proposed trunk sewer.

13. We have examined the grounds of the objections. Our responses are as follows -

1. we will ensure that the design of the proposed road works and sewers would not cause any resultant flooding to TPTL 140;

2. whilst the diminution in property value is a matter of judgement, there is no reason why the full development potential of the lot cannot be achieved from an engineering point of view. Proper temporary and permanent vehicular access to the lot could be maintained despite the difference in level between the future road and the ground floor of the original proposed development at the lot. We have made clear to the objector that works providing temporary access to the lot from Government land would be carried out once the project commences on site. Suitable liaison with the Administration on the interface and access arrangements could be arranged prior to the commencement of the project, in order not to affect the timely completion of the development at the lot;

3. the scale of the works (to form and/or maintain a public pavement and non-exclusive right-of-way and landscaping works on Government land adjoining the lot) the developer was obliged to carry out under the lease has been reduced due to the road widening works extending very close to the lot boundaries. This reduction in the developer's obligation has been entered into a lease modification agreed by the developer (see also paragraph 14 below); and

4. the lease conditions in respect of TPTL 140 provide for the developer to carry out on-site sewage treatment and disposal. As the provision of a sewerage connection to TPTL 140 would result in disproportionate additional cost and would complicate the proposed works, we do not propose to connect the lot to the trunk sewer provided under this project.

14. Subsequent to raising objections to the proposed works, the developer of TPTL 140 submitted a revised form of development which, in the developer's view, would counteract the alleged adverse impact caused by the difference in level between the sites. A lease modification, necessary to effect the revised development proposal, was agreed in principle between the Administration and the developer in April 1997. The lease modification was accepted by the developer on 16 December 1997. From the Administration's point of view, the objector's concerns mentioned in paragraphs 12(a), 12(b) and 12(c) above have been addressed in the lease modification.

15. On 10 February 1998, the Chief Executive in Council overruled the objection in the public interest and authorised the proposed works without modification.

ENVIRONMENTAL IMPLICATIONS

16. We completed an Environmental Impact Assessment study in January 1997. The study report identified the noise impact arising from the project and recommended measures to mitigate the impact to within established standards and guidelines. We shall implement the recommended mitigation measures, which include construction of noise barriers up to 2.9 metres high and low noise road surfacing at some sections of the upgraded road to minimise traffic noise impact. We have included the estimated cost of $3.6 million for these mitigation measures ($3.0 million for the noise barriers and $0.6 million for low noise road surfacing) in the overall cost of the proposed works.

17. For short term impact during the construction period, we shall control noise, dust and site run-off nuisances to within established criteria through the implementation of appropriate mitigation measures in the relevant contracts.

LAND ACQUISITION

18. We will resume about 0.68 hectares of agricultural land. The clearance will necessitate the removal of one household. The Director of Housing will offer this family accommodation in public housing in line with existing policy. We will charge the cost of land acquisition and clearance, estimated at $43.6 million, to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

19. We upgraded 183CL to Category B in 1981. Since then, various parts of 183CL have been upgraded to Category A.

20. In June 1993, Finance Committee approved the upgrading of a part of 183CL to Category A as 168DS for the construction of the phase 2 extension to the Tai Po Sewage Treatment Works. After the upgrading of 168DS, the works remaining in 183CL comprised -

1. upgrading of Ting Kok Road - stage 2 and associated sewerage works;

2. formation and servicing of area 12 (part) and area 39;

3. formation and servicing of area 14 (stage 2) and area 32;

4. construction of a seawall and reclamation in area 27; and

5. formation and servicing for Tung Tsz nursery, phase 2.

21. The works described in paragraphs 20(c), 20(d) and 20(e) above were somewhat ill-defined at the time and in 1994 these were deleted from the scope of 183CL. After completing a preliminary project feasibility study for the works described in paragraph 20(b) above, we included these works under a new project item 460CL. Finance Committee approved the upgrading of part of 460CL to Category A on 12 December 1997.

22. We plan to upgrade the section of Ting Kok Road between Tai Po Industrial Estate and Tai Mei Tuk in two stages. We will implement the stage 1 upgrading works covering the section of the road between Tai Po Industrial Estate and Shuen Wan Chan Uk under 193TH, which was upgraded to Category B in November 1993. The stage 2 upgrading works covering the remaining section of Ting Kok Road up to Tai Mei Tuk have been included in 183CL. Since the stage 1 works involve the resumption of two formal graves, we anticipate the relevant land acquisition formalities will take some time. We therefore plan to implement the stage 2 works first and carry out the stage 1 works at a later stage. We plan to start the stage 1 works in early 1999 for completion in late 2001.

23. We have engaged consultants to carry out site investigation and detailed design for the proposed stage 2 upgrading works, and charged the cost of $4 million to the block allocation Subhead 7100CX "New towns and urban area works, studies and investigations for items Category D of Public Works Programme". The consultants have completed the detailed design and drawings. We plan to start the works in May 1998 for completion in December 2000.

Planning, Environment and Lands Bureau
February 1998

1.The proposed development comprises eight low-rise residential buildings. Under the lease conditions, the developer is required to form and/or maintain at his own expense a public pavement and non-exclusive right-of-way and landscaping works on Government land adjoining the lot. However, the scale of these works would be reduced due to the road widening works extending very close to the lot boundaries.

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Enclosure to PWSC(97-98)134

183CL - Tai Po development - remaining works

Breakdown of estimates for consultants' fees for construction stage
Consultants' staff costs		Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($ million)
(a) Contract administration	Professional Technical	9 6	40 16	3.0 3.0	1.5 0.3
(b) Preparation of as-built drawings	Professional Technical	2 6	40 16	3.0 3.0	0.3 0.3
(c) Site supervision by resident site staff employed by the consultants	Professional Technical	70 260	40 16	2.1 2.1	8.1 10.2
Total consultants' staff costs					20.7

^*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 is included as part of the overall consultancy agreement for New Town Development at Tai Po.