For discussion PWSC(97-98)98
on 7 January 1998
ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 705 - CIVIL ENGINEERING
Air and Sea Communications - Port works
65AP - Peng Chau typhoon shelter
Members are invited to recommend to Finance Committee -
- the upgrading of part of 65AP, entitled "Peng Chau typhoon shelter - environmental impact assessment study and site investigation", to Category A at an estimated cost of $22.1 million in money-of-the-day prices; and
- the retention of the remainder of 65AP in Category B.
PROBLEM
We need to undertake an environmental impact assessment (EIA) study and site investigation works to establish necessary environmental mitigation measures and design parameters for the proposed typhoon shelter at Peng Chau.
PROPOSAL
2. The Director of Civil Engineering, with the support of the Secretary for Economic Services, proposes to upgrade part of 65AP to Category A at an estimated cost of $22.1 million in money-of-the-day (MOD) prices to engage consultants to carry out an EIA study and site investigation works.
PROJECT SCOPE AND NATURE
3. The scope of the project comprises an EIA study and site investigation works. The EIA study includes the following -
- an air, noise and water quality assessment study;
- an ecological and fisheries impact assessment study; and
- a risk assessment study on the risks to Peng Chau residents of relocating a jetty for the delivery of liquefied petroleum gas (LPG) cylinders.
4. The remainder of item 65AP to be retained in Category B comprises the construction of approximately 2 500 metres of breakwater to form a 40 hectare typhoon shelter, along with the provision of navigational aids and the reprovisioning of a jetty.
5. A preliminary layout plan showing the proposed typhoon shelter at Peng Chau is at Enclosure 1.
JUSTIFICATION
6. The Port and Airport Development Strategy (PADS) study, which was completed in 1989, recommended the development of typhoon shelters at Peng Chau and other areas to cater for the present shortage and the projected increased demand for typhoon shelter facilities. In June 1997, the Director of Marine assessed the typhoon shelter space requirements from 1997 to 2016 which forecast a total shortfall of about 87 hectares in 1997 rising to about 211 hectares in 2016. The assessment confirmed the recommendation given in the PADS study and concluded that the proposed typhoon shelter at Peng Chau, which will provide 40 hectares of shelter space, was required to meet the shortfall.
7. Current proposed port developments will have the effect of moving the centre of port operations to the Western Harbour area. Hence, timely provision of a typhoon shelter at Peng Chau is essential.
8. The EIA study which includes an air, noise and water quality assessment study and an ecological and fisheries impact assessment study is required to identify, predict and evaluate the effects on the environment, ecology and fisheries due to dredging, transportation, filling and dumping activities. A jetty used for the unloading of LPG gas has to be reprovisioned as a consequence of the typhoon shelter works. The EIA study will include a risk assessment study to ensure that the location of the new jetty is acceptable. The site investigation works are needed to establish the necessary design parameters for the typhoon shelter.
9. The Director of Civil Engineering does not have the necessary in-house resources to undertake the EIA study and proposes to engage consultants for the work. However, the site investigation works will be supervised by in-house expertise.
FINANCIAL IMPLICATIONS
10. We estimate the total cost of the proposed EIA study and the site investigation to be $22.1 million in MOD prices (see paragraph 11 below), made up as follows -
|
$ million
|
|
|
(a) Consultants' fees for EIA study
|
6.2
|
|
|
(b) Site investigation
|
10.2
|
|
|
(c) Contingency
|
1.6
|
|
|
_____
|
|
|
Sub-total
|
18.0
|
(at December 1996 prices) |
|
(d) Inflation allowance
|
4.1
|
|
|
_____
|
|
|
Total
|
22.1
|
(in MOD prices) |
|
_____
|
|
A breakdown by man-months of the estimate for consultants' fees is at Enclosure 2.
11. Subject to approval, we will phase the expenditure as follows -
|
Year
|
$ million (Dec 1996)
|
Price adjustment factor
|
$ million (MOD) |
|
1998 - 99
|
6.4
|
1.16358
|
7.4 |
|
1999 - 2000
|
11.6
|
1.26830
|
14.7 |
|
_____
|
|
_____ |
|
18.0
|
|
22.1 |
|
_____
|
|
_____ |
12. We have derived the MOD estimate on the basis of the Government's forecasts of trend labour and construction prices for the period 1998 to 2000. We shall award the consultancy study on a lump-sum basis with provision for inflation adjustment as the study period will exceed 12 months. The site investigation works are subject to remeasurement as there is uncertainty over the drilling depths of boreholes. Because these works will be carried out under the standard Government term contract which exceeds 21 months in duration, payment for the site investigation works ordered will be subject to inflation adjustment.
13. The EIA study and the site investigation works will not give rise to any recurrent expenditure.
PUBLIC CONSULTATION
14. We will inform the public of the findings of the EIA study through the Islands Provisional District Board and, if necessary, the Advisory Council on Environment.
ENVIRONMENTAL IMPLICATIONS
15. We completed a preliminary environmental review in March 1997 and concluded that an Environmental Impact Assessment is required to confirm the environmental acceptability of the proposed typhoon shelter. The study itself and the site investigation work will not cause any adverse environmental impact.
LAND ACQUISITION
16. The proposal does not require any land acquisition.
BACKGROUND INFORMATION
17. We upgraded this project to Category B in August 1997.
18. We plan to start the EIA study in May 1998 for completion in June 1999, and the site investigation in March 1999 for completion in October 1999.
19. We plan to start the construction of the typhoon shelter in early 2001 for completion in mid 2003.
Economic Services Bureau
December 1997
(HH607)
Enclosure 2 to PWSC (97-98)98
DETAILS OF CONSULTANTS' FEES
Breakdown of estimates for consultant's fees
|
Consultants' staff costs
|
|
Estimated man months
|
Average MPS salary point
|
Multiplier factor
|
Estimated fee ($ million) |
|
(a) An air, noise and water quality assessment study
|
Professional
Technical
|
12
12
|
40
16
|
3.0
3.0
|
1.99
0.67 |
|
(b) Ecological and fisheries impact assessment study
|
Professional
Technical
|
6
6
|
40
16
|
3.0
3.0
|
1.00
0.33 |
|
(c) Risk assessment study on delivery of liquefied petroleum gas cylinders
|
Professional
Technical
|
4
1.5
|
40
16
|
3.0
3.0
|
0.66
0.08 |
|
|
|
|
|
_____ |
|
|
Total consultants' staff costs
|
4.73 |
|
|
|
_____ |
| Out-of-pocket expenses
|
(a) Site investigation and laboratory testing
|
1.50 |
|
_____ |
|
Total out-of-pocket expenses
|
1.50 |
|
Total out-of-pocket expenses
|
_____ |
|
Total
|
6.23 |
|
|
_____ |
Notes
1. A multiplier factor of 3 is applied to the average Master Pay Scale (MPS) point to arrive at the full staff costs including the consultants' overheads and profits, as the staff will be employed in the consultants' offices. (At 1.4.1996, 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 Civil Engineering. We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive lump sum fee bid system.
3. Out-of-pocket expenses are the actual cost incurred. The consultants are not entitled to any additional payment for the overheads or profits in respect of these items.
4. Under the out-of-pocket expenses heading, the site investigation and laboratory testing is a provisional item in case there is a need for biological and contaminant investigation. This type of site investigation and laboratory testing, if necessary, will be undertaken by the consultant as the work is not covered under the standard Government contract.
(HH607)
