PWSC(97-98) 63
For discussion
on 12 November 1997

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories North Development
Civil Engineering - Land development
460CL - Tai Po development, remaining works - formation and servicing of areas 12 (part) and 39

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 460CL, entitled " Tai Po development - formation and servicing of areas 12 (part) and 39, phase 1 " , to Category A at an estimated cost of $133.3 million in money-of-the-day prices; and

2. the retention of the remainder of 460CL, retitled " Tai Po development - formation and servicing of areas 12 (part) and 39, phase 2 " , in Category B.

PROBLEM

We need to carry out site formation works and construct roads and drains in areas 12 (part) and 39 of Tai Po to provide land and engineering infrastructure for the proposed development in the areas.

PROPOSAL

2.The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands (SPEL), proposes to upgrade part of 460CL to Category A at an estimated cost of $133.3 million in money-of-the-day (MOD) prices to provide formed land in area 39, and roads and drains in areas 12 (part) and 39 of Tai Po.

PROJECT SCOPE AND NATURE

3.The full scope of 460CL comprises engineering works to provide -

1. 20.6 hectares of formed and serviced land in area 39 of Tai Po for government, institutional and community facilities and educational uses; and

2. the necessary infrastructure to serve the future residential and village development in area 12 of Tai Po.

4.The phase 1 works we now propose to upgrade to Category A comprise -

1. formation of about 8.4 hectares of land in the northern part of area 39 for the proposed sports centre of the Hong Kong Institute of Education (HKIEd) and other government, institutional and community facilities;

2. widening and reconstruction of the existing Yau King Lane (about 560 metres in length) including associated footpaths and modification of its junction at Tai Po Road;

3. construction of Road L39/1 (about one kilometre in length) and associated footpaths linking the widened Yau King Lane with area 39;

4. construction of box culverts and associated drainage and sewerage works in areas 12 and 39 of Tai Po; and

5. landscaping works in areas 12 and 39 of Tai Po.

JUSTIFICATION

5.In December 1995, SPEL approved the Tai Po Areas 12 (part) and 39 Layout Plan which earmarked the areas mainly for comprehensive developments, green belts, village developments, educational and government/institution/community uses, including an off campus sports centre of HKIEd. Upon full development, the population in the area is estimated at 8 800 and the proposed sports centre, when completed, will be used by about 6 200 HKIEd students and staff. We plan to construct the infrastructural works for the sports centre and the other developments described above in two phases and complete the works by the year 2001 and 2004 respectively.

6.We need to provide formed land with adequate infrastructural facilities including box culverts and associated drainage and sewerage works for the development described above. In addition, we propose to provide Road L39/1 as a direct link between Yau King Lane and area 39, Tai Po. Furthermore, we have to undertake some landscaping works, including the provision of amenity areas and revegetation of slopes to preserve the existing environment of the area.

FINANCIAL IMPLICATIONS

7.We estimate the capital cost of the project to be $ 133.3 million in MOD prices (see paragraph 8 below), made up as follows -

			$ million
(a)	Site formation		21.8
(b)	Roadworks		21.8
(c)	Box culverts		25.5
(d)	Stormwater drains		9.6
(e)	Sewers		3.6
(f)	Landscaping works		3.6
(g)	Consultants' fees for -		9.6
	(i) construction stage	1.2
	(ii) resident site staff costs	8.4
(h)	Contingencies		9.5
	Sub-total		105.0	(at December 1996 prices)
	(i) Inflation allowance		28.3
	Total		133.3	(in MOD prices)

Due to insufficient in-house resources, DTD proposes to engage consultants to supervise the proposed works. A breakdown by man months of the estimate for consultants' fees is at the Enclosure.

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

Year	$ million (Dec 1996)	Price adjustment factor	$ million (MOD)
1997 - 1998	2.0	1.06750	2.1
1998 - 1999	35.0	1.16358	40.7
1999 - 2000	43.0	1.26830	54.5
2000 - 2001	14.0	1.38244	19.4
2001 - 2002	11.0	1.50686	16.6
	105.0		133.3

9.We have derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices over the period 1997 to 2002. We will tender the works under a lump sum contract because we have firm quantities for the majority of the works. The contract will provide for inflation adjustments as the contract period will exceed 21 months.

10.We estimate the annually recurrent expenditure for the project to be $2.49 million, of which $80,000 is for the sewerage works.

PUBLIC CONSULTATION

11.We consulted the Traffic and Transport Committee, and the Environmental Improvement and Works Committee of the Tai Po District Board on the proposed works in July 1995 and July 1996 respectively. Members of both Committees had no objection to the proposal.

12.We gazetted the proposed roadworks under the Roads (Works, Use and Compensation) Ordinance on 19 January 1996. We received two objections on grounds of possible disturbance to the existing woodlands, possible adverse impact on the local ecology, and possible traffic hazard to residents in the vicinity.

13.To address the concern on possible disturbance to the natural environment, we plan to carry out some transplantation and revegetation works as recommended in the Environmental Impact Assessment (EIA) report which was completed in June 1996. In addition, we propose to slightly modify the alignment of the proposed road to minimise possible disturbance to the existing woodlands. With regard to the concern on traffic hazard, we propose to provide suitable traffic aids to enhance road safety.

14.The objectors agreed to the proposed modification to the alignment of the proposed road. However, they maintained their objections because of their concerns on the environmental impacts arising from the proposed construction of some lorry parks under phase 2 of the project. We will further consult the residents and take into account their views, where appropriate, in planning and designing the phase 2 works. We plan to commence the phase 2 works in 1999.

15.On 4 November 1997, the Chief Executive in Council overruled the objections in the public interest and authorised the proposed works subject to the proposed modification of road alignment mentioned in paragraph 14 above.

16.We received a letter dated 4 November 1997 from solicitors for the Owners' Committee of Villa Castell, raising concerns about the proposed roadworks. These concerns relate to increased traffic noise, obstruction of views by the noise barrier, increased road maintenance costs to the owners and the proposed alignment of the road.

17.With regard to increased traffic noise, the EIA study has concluded that noise levels would be within accepted standards following completion of phase 1. The noise barrier to be built will be gazetted as part of the phase 2 works, and the concerns of the residents of Villa Castell on the obstruction of views by the barrier will be addressed at that time. With regard to the maintenance of Yau King Lane, the owners of Villa Castell will be relieved of maintenance responsibility upon commencement of the works proposed under phase 1. With regard to the proposed alignment, a more direct connection from the Tolo Highway to Area 39 as proposed by the owners would not be practicable.

ENVIRONMENTAL IMPLICATIONS

18.The EIA study mentioned in paragraph 14 above concluded that any environmental impact arising from the project could be mitigated to within the established standards and guidelines. We shall implement the mitigation measures recommended in the EIA report. These measures include transplantation and revegetation to minimise impact on the existing natural environment. During the construction period, we will control noise, dust and site run-off nuisances to within the established criteria through the implementation of mitigation measures in the relevant contracts. The estimated cost of the mitigation measures is $0.5 million and is included in the overall cost of the proposed works.

19.The Advisory Council on the Environment endorsed the EIA report on 19 August 1996.

LAND ACQUISITION

20.We will resume about 0.4 hectares of agricultural land. No household will need to be removed because of the land resumption. We will charge the cost of land acquisition and clearance, estimated at $27.1 million, to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

21.We upgraded 460CL to Category B in April 1995.

22.We engaged consultants to undertake investigation and design for the proposed works and charged the cost of $6 million to the block allocation Subhead 7100CX " New towns and urban area works, studies and investigations for items in Category D of the Public Works Programme " . The consultants have completed the detailed design and drawings in November 1996. We plan to start the proposed phase 1 works in January 1998 for completion in stages by early 2001.

23.We plan to implement the remaining works in phase 2 in mid 1999 for completion by 2004.

Planning, Environment and Lands Bureau
October 1997

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Enclosure to PWSC(97-98)63

460CL - Tai Po development, remaining works - formation and servicing of areas 12 (part) and 39

Breakdown of the estimate for consultants' fees for construction stage

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.