PWSC(97-98)87
For discussion
on 10 December 1997

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Support - Border facilities (other than road works)
6GB - Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 6GB, entitled " Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing - pre-contract consultancy and design " to Category A at an estimated cost of $104.1 million in money-of-the-day prices; and

2. the retention of the remainder of 6GB retitled " Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing - works' in Category B.

PROBLEM

We do not have the necessary in-house resources to carry out the site investigation, schematic proposal, detailed design, environmental impact assessment (EIA) and drainage impact assessment (DIA) to meet the urgent programme for the proposed expansion of the kiosks and other facilities at the Lok Ma Chau boundary crossing.

PROPOSAL

2.The Director of Architectural Services, with the support of the Secretary for Transport, proposes to upgrade part of 6GB to Category A at an estimated cost of $104.1 million in money-of-the-day (MOD) prices for the employment of consultants to carry out site investigation, schematic proposal, detailed design, contract documentation, EIA and DIA for the proposed expansion of kiosks and other facilities at Lok Ma Chau boundary crossing.

PROJECT SCOPE AND NATURE

3.The scope of works of 6GB includes -

1. the construction of ten additional kiosks in each direction of traffic for the Customs & Excise Department (C&ED) and the Immigration Department (ImmD) with relocation of existing kiosks as necessary;

2. the construction of cargo examination buildings, vehicle inspection and detention areas and related supporting facilities;

3. the provision of container vehicle X-ray examination systems and associated buildings and associated services for C&ED;

4. the extension of the existing main building to provide additional office areas, passenger queuing areas and public amenities to cater for an average of 25,000 passengers per day, together with associated building services;

5. the provision of electronic security installations for the cross boundary movement of people and vehicles which include additional hardware and software for the computerised Land Boundary System for C&ED and ImmD;

6. implementation of environmental mitigation measures, monitoring and auditing programme in accordance with recommendations of the EIA and DIA studies; and

7. the civil infrastructural works including site formation, reclamation and associated geotechnical works to provide additional hardstanding area to accommodate the new structures, roadworks, drainage, sewerage, lighting, traffic aids and utilities works.

4.The part of the project under 6GB that we now propose to upgrade to Category A comprises -

1. pre-contract consultancy services which include site investigation, schematic proposal, detailed design, contract documentation, EIA and DIA studies of the proposed project; and

2. pre-contract design and tendering of the X-ray examination systems for container vehicles including housing structures and other electronics, electrical and mechanical works.

JUSTIFICATION

5.With the opening of the Lok Ma Chau boundary crossing in 1989, the road traffic between Hong Kong and Huanggang, Shenzhen has been increasing rapidly. At present there are a total of 14 pairs of kiosks (seven Hong Kong bound and seven Mainland bound) for ImmD and C&ED which can handle about 1 000 vehicles per hour. This figure is reached early in the morning and by late morning about 1 400 to 1 500 vehicles per hour must be handled. Long queues accumulate and the prolonged congestion does not ease off until early evening when the traffic flow again reverts to about 1 000 vehicles per hour. The latest traffic forecast for the Lok Ma Chau boundary crossing has revealed that cross boundary passenger and freight traffic will continue to increase. To accommodate the anticipated increase in traffic and passenger flow, we propose to increase the number of kiosks and expand other facilities. Five additional pairs of kiosks (five for ImmD and five for C&ED) in each direction, together with ancillary customs and immigration examination facilities are required to meet the anticipated demand.

6.As we do not have the necessary in-house resources, we propose to engage consultants to undertake the site investigation, schematic proposal, detailed design and contract documentation, EIA and DIA studies of the proposed project. In tandem with the above pre-contract consultancy services, we also propose to carry out the pre-contract design and tendering of the X-ray examination systems by the Electrical and Mechanical Services Department so as to match the programme for installation of the system and the building construction works.

FINANCIAL IMPLICATIONS

7.Based on an estimated project cost of $1,225.0 million (at December 1996 prices) subject to further refinement at a later stage, we estimate the cost of consultants' fees and site investigations to be $104.1 million in MOD prices (see paragraph 9 below), made up as follows -

			$ million
(a)	Site investigations		2.9
(b)	Consultants' fees		55.2
	(i)environmental impact assessment and drainage impact assessment	6.0
	(ii)schematic proposals	4.7
	(iii)detailed design	29.3
	(iv)contract documentation	15.2
(c)	Electrical and Mechanical Services Trading Fund (EMSTF) for electrical and mechanical facilities detailed design		18.9
(d)	Contingencies		7.7
	Sub-total		84.7	(at December 1996 prices)
(d)	Inflation allowance		19.4
	Total		104.1	(in MOD prices)

8.A breakdown by man months of the estimate for consultants' fees 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 - 99	31.3	1.16358	36.4
1999 - 2000	53.4	1.26830	67.7
	84.7		104.1

10.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 2000.

11.The proposed consultancy will not give rise to any additional annually recurrent expenditure.

PUBLIC CONSULTATION

12.After completion of the EIA and DIA detailed studies, we will consult the San Tin Rural Committee and Yuen Long Provisional District Board. The proposals will also be discussed with the Mainland authorities as part of the on-going consultations on cross-boundary facilities between Hong Kong and the Mainland.

ENVIRONMENTAL IMPLICATIONS

13.The proposed consultancy will not have any adverse environmental implications. Under the consultancy study, an EIA will be undertaken to identify all necessary environmental mitigation measures and environment monitoring and audit requirements. The cost of the environmental impact assessment is included in the overall cost of the study.

LAND ACQUISITION

14.The consultancy project does not require any land acquisition.

BACKGROUND INFORMATION

15.We upgraded 6GB to Category B in September 1995. We plan to start the proposed consultancy in February 1998 for completion of the preliminary studies, EIA and DIA studies and detailed design of the kiosks by December 1998. The other remaining studies will be completed by August 2000. In order to maintain 24-hour operation of the boundary crossing, we plan to implement the construction works in phases. We will start the construction works for the kiosks in April 1999 once the detailed design has been completed. We intend to complete these works in December 1999. We plan to start the remaining building works and X-ray systems installations by September 2000 for completion in September 2002.

Transport Bureau
December 1997

(EE1130)

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Enclosure to PWSC(97-98)87

6GB - Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing

DETAILS OF CONSULTANTS' FEES AND CHARGES OF ELECTRICAL AND MECHANICAL SERVICES TRADING FUND

Breakdown of estimates of consultants' fees

		Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($ million)
(A) Consultants' staff costs
(I) Architectural discipline
(a)Schematic proposal	Professional Technical	13.3 17	40 16	3.0 3.0	2.2 0.9
(b)Detailed design	Professional Technical	45.7 58.8	40 16	3.0 3.0	7.6 3.3
(c)Contract documentation	Professional Technical	31.0 39.6	40 16	3.0 3.0	5.2 2.2
Sub-total					21.4
(II) Quantity surveying discipline
(a)Contract documentation	Professional Technical	28.3 56.3	40 16	3.0 3.0	4.7 3.1
Sub-total					7.8
(III) Structural engineering discipline
(a)Detailed design	Professional Technical	33.1 41.6	40 16	3.0 3.0	5.5 2.3
(IV) Building services engineering discipline
(a)Detailed design	Professional Technical	20.9 26.5	40 16	3.0 3.0	3.5 1.5
Sub-total					5.0
V.Civil engineering discipline
(a)Schematic proposal	Professional Technical	6.4 8.2	40 16	3.0 3.0	1.1 0.5
(b) Detailed design	Professional Technical	23.5 30.7	40 16	3.0 3.0	3.9 1.7
Sub-total					7.2
(VI) Specialist consultants (EIA/DIA)
nvestigations, consultation and preparation of detailed environmental and drainage impact assessment reports	Professional Technical	25.3 32.2	40 16	3.0 3.0	4.2 1.8
Sub-total					6.0
Total					55.2
(B)Charges by Electrical and Mechanical Services Trading Fund (EMSTF)					18.9
Project management fees for investigation, design and tendering of electrical/ mechanical works and X-ray vehicle inspection system including building enclosures

* 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.).

(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.

(3)Since the establishment of the 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 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.

(EE1130)