PWSC(97-98)86
For discussion
on 10 December 1997

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Education - Primary
196EP -Primary school in area 105, Tin Shui Wai

Members are invited to recommend to Finance Committee the upgrading of 196EP to Category A at an estimated cost of $81.3 million in money-of-the-day prices for the construction of a primary school in area 105, Tin Shui Wai. PROBLEM

The Director of Education (D of E) forecasts that there will be a shortfall of 205 primary whole-day classes in school zone 316 (Tin Shui Wai) by 2001.

PROPOSAL

2.The Director of Architectural Services (D Arch S), with the support of the Secretary for Housing, proposes to upgrade 196EP to Category A at an estimated cost of $81.3 million in money-of-the-day (MOD) prices for the construction of a primary school in area 105, Tin Shui Wai.

PROJECT SCOPE AND NATURE

3.The proposed primary school is a standard design school building. It will have -

1. 30 classrooms;

2. six special rooms;

3. three remedial teaching rooms;

4. a guidance activity/interview room;

5. two interview rooms;

6. four staff rooms and a staff common room;

7. a student activity centre;

8. a conference room;

9. a library;

10. an assembly hall; and

11. ancillary facilities.

JUSTIFICATION

4.In school zone 316 (Tin Shui Wai), there are at present eight primary schools providing a total of 240 classes. D of E forecasts that by 2001, the demand for whole-day primary school places will be 655 classes. With the completion of 7 primary schools in school zone 316 by 2000, the shortfall will be reduced from 415 to 205 classes. To implement the policy on whole-day schooling and to alleviate the shortfall, we propose to provide one more primary school in this school zone in 2001. We are planning to construct more schools in this school zone to further reduce the shortfall.

FINANCIAL IMPLICATIONS

5.We estimate the capital cost of the project to be $81.3 million in MOD prices (see paragraph 6 below), made up as follows -

	$ million
(a)Piling	8.5
(b)Building	30.6
(c)Building services	6.8
(d)Drainage and external works	7.0
(e)Contingencies	5.2
(f)Housing Authority on-cost	1.2
Sub-total	59.3	(at December 1996 prices)
(g)Inflation allowance	22.0
Total	81.3	(in MOD prices)

A comparison of the standard cost of a primary school with the project estimate of this school is at the Enclosure.

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

Year	$ million (Dec 1996)	Price adjustment factor	$ million (MOD)
1998 - 99	2.7	1.16358	3.1
1999 - 2000	17.0	1.26830	21.6
2000 - 01	28.4	1.38244	39.3
2001 - 02	8.2	1.50686	12.4
2002 - 03	3.0	1.64248	4.9
	59.3		81.3

7.We have derived the MOD estimates on the basis of the Government's forecast of trend labour and construction prices for the period 1998 to 2003. In order to tie in with the overall public housing development programme in area 105, Tin Shui Wai, we will entrust the construction of the primary school to the Housing Authority which will incorporate the piling contract and building contract for the school into its respective contracts for the housing estate development. The contracts for the school construction will be on a lump-sum basis with provision for inflation because the contract period will be longer than 21 months.

8.We estimate the additional annually recurrent expenditure for the school to be $16.4 million. As the new school will be operated as an aided school, the individual sponsoring body will bear the costs of furniture and equipment, estimated at $4.1 million.

PUBLIC CONSULTATION

9.We consulted the Social Services and Publicity Committee of the Yuen Long Provisional District Board in November 1997. Members supported the project.

ENVIRONMENTAL IMPLICATIONS

10.The Director of Environmental Protection vetted the Preliminary

Environmental Review (PER) conducted by consultants of Director of Housing in September 1997. The PER concluded that the proposed school would not be subject to adverse environmental impacts. We will control noise, dust and site run-off nuisances during construction to comply with the established standards through the implementation of mitigation measures in the relevant contracts.

LAND ACQUISITION

11.The project does not require land acquisition.

BACKGROUND INFORMATION

12.We upgraded 196EP to Category B in July 1996. D of H has completed site investigation for the project as part of the housing development for area 105 in Tin Shui Wai. D of H plans to start the construction works in April 1998 for completion in March 2001 to tie in with the overall housing development programme of the estate.

Housing Bureau
December 1997

(LL292)

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Enclosure to PWSC(97-98)86

A comparison of the standard cost of a primary school project with the estimated cost of the proposed school project

	Standard cost*	196EP
	$ million (at Dec 1996 prices)
(a)Piling	9.3	8.5
(b)Building	30.6	30.6
(c)Building services	6.8	6.8
(d)Drainage and external works	7.0	7.0
(e)Contingencies	5.3	5.2
(f)Housing Authority on-costs	-	1.2	(See note A)
Total	59.0	59.3

*Assumptions for standard cost

1.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.

2.Piling cost is based on 128 nos. of steel H-piles at an average depth of 30 metres.

3.Site safety provisions of 2% of the estimated contract sum (excluding contingencies) is included in the building cost.

4.Cost for drainage and external works are for a standard school site area of 6 200 square metres built on a flat site. No diversion of existing utilities or noise mitigation measures are required.

5.No consultancy services are required.

6.Furniture and equipment cost is excluded as it is usually borne by the sponsoring body.

Notes

A.There is a standard arrangement to add 2% on-costs for projects entrusted to the Housing Authority.

(LL292)