PWSC(97-98)67
For discussion
on 12 November 1997

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Law and Order - Correctional services
66LC - Redevelopment of Tai Lam Correctional Institution

Members are invited to recommend to Finance Committee the upgrading of 66LC to Category A at an estimated cost of $284.3 million in money-of-the-day prices for the redevelopment of Tai Lam Correctional Institution.

PROBLEM

Existing facilities at the Tai Lam Correctional Institution are inadequate and outdated to meet current standards for correctional facilities.

PROPOSAL

2.The Director of Architectural Services (D Arch S), with the support of the Secretary for Security, proposes to upgrade 66LC to Category A at an estimated cost of $284.3 million in money-of-the-day (MOD) prices to redevelop the Tai Lam Correctional Institution to provide facilities that meet current standards for correctional services.

PROJECT SCOPE AND NATURE

3.The scope of works for this project comprises -

1. construction of two dormitory blocks to provide 200 medium security penal places with dining facilities;

2. conversion of the existing clinic to a dormitory to provide 60 medium security penal places;

3. construction of an industrial block to provide 110 workposts for inmates (an addition of 66 workposts); and

4. construction of a hospital block, an administrative block and a segregation block with 20 cells.

JUSTIFICATION

4.Prisons in Hong Kong are constantly overcrowded. Since 1989, the number of penal places required has remained at 20% to 30% above the certified total number of penal places available.

5.We have been taking progressive steps to ease overcrowding in penal institutions, such as by converting the Hei Ling Chau Vietnamese Migrants (VM) Detention Centre and Chimawan (Upper) VM Detention Centre into penal institutions, and converting Nei Kwu Chau VM Detention Centre and Chimawan (Lower) VM Detention Centre into drug addiction treatment centres. These projects have provided 896 additional penal places and 430 drug addiction treatment places. We have also converted the ex-military camp at Lo Wu into a temporary prison and are redeveloping the Stanley Prison. The Lo Wu Correctional Institution now accommodates up to 208 inmates. Upon its completion in 1999, the Stanley Prison redevelopment project will provide 775 additional penal places. Redevelopment of the Tai Lam Correctional Institution is expected to provide 260 additional penal places in 2000 when the three dormitory blocks in the project are completed.

6.The Tai Lam Correctional Institution was converted from the construction site offices and quarters of the Tai Lam Chung Reservoir in the 1950s. Its facilities, such as the hospital, workshops and administrative facilities are inadequate and out-dated when compared with current standards for correctional services. Similar to other penal institutions, the Tai Lam Correctional Institution is constantly overcrowded. Its average daily prison population in 1996/97 was 711, which was about 20% over the certified accommodation of 590 inmates.

7.The provision of 260 additional penal places in this redevelopment project will significantly relieve the overcrowding situation at the Tai Lam Correctional Institution and indirectly other prisons. The new hospital block will provide facilities which meet the requirements of the Hospital Authority and security requirements of the Correctional Services Department. The provision of 20 self-contained cells in the segregation unit for confinement of prisoners under disciplinary action will also enhance better control and management of the prisoners.

FINANCIAL IMPLICATIONS

8.We estimate the total cost of the project to be $284.3 million in MOD prices (see paragraph 9 below), made up as follows -

	$ million
(a) Site formation	2.0
(b) Piling	2.9
(c) Building	75.1
(d) Building services	79.3
(e) Drainage and external works	23.6
(f) Furniture and equipment	0.6
(g) Consultants' fees	4.9
(h) Contingencies	16.2
Sub-total	204.6	(at December 1996 prices)
(i) Inflation allowance	79.7
Total	284.3	(in MOD prices)

A breakdown by man months of the cost estimate for consultants' fees and related services 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	14.3	1.16358	16.6
1999 - 2000	73.1	1.26830	92.7
2000 - 01	46.8	1.38244	64.7
2001 - 02	39.5	1.50686	59.5
2002 - 03	30.9	1.64248	50.8
	204.6		284.3

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 2003. We will tender the works under a fixed price lump-sum contract because we can clearly define the scope of works in advance, leaving little room for uncertainty.

11.We estimate the additional annually recurrent expenditure of the project to be $13.1 million.

PUBLIC CONSULTATION

12.We consulted the Tuen Mun District Board in December 1996. Members raised no objections.

ENVIRONMENTAL IMPLICATIONS

13.The Director of Environmental Protection completed an environmental review in August 1995 and concluded that the project would have no long term environmental impact and no environmental impact assessment would be required. However, given the proximity of the site to the Tai Lam Chung water pre-chlorination facilities, a hazard assessment should be conducted. The consultants of Architectural Services Department completed the hazard assessment in September 1997 and concluded that the additional risk associated with the population increase resulting from the project will comply with the Hong Kong Risk Guidelines.

14.The waste water generated by the institution will be collected and disposed of through public sewer. Before the public sewer connection is put in place, we will provide interim treatment by an on-site sewage treatment plant to comply with discharge standards stipulated under the Water Pollution Control Ordinance.

15.We will control noise, dust and site run-off nuisance during construction to comply with established standards and guidelines through the implementation of mitigation measures in relevant contracts.

LAND ACQUISITION

16.The project does not require land acquisition.

BACKGROUND INFORMATION

17.We upgraded the project to Category B in January 1996. We had engaged consultants for Hazard Assessment which was completed in September 1997 at a cost of $0.55 million. We charged this amount to the block allocation Subhead 3100GX " Project feasibility studies, minor investigations and consultancy fees from items in Category D of the Public Works Programme " . We have finalised the detailed design by using in-house staff resources. We plan to start the construction work in April 1998 for completion in September 2001.

Security Bureau
November 1997

(JJ201)

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Enclosure to PWSC(97-98)67

66LC - Redevelopment of Tai Lam Correctional Institution

DETAILS OF CONSULTANTs' FEES AND CHARGES OF ELECTRICAL AND MECHANICAL SERVICES TRADING FUND AND TELECOMMUNICATIONS TRADING FUND

Breakdown of estimates for consultants' fee

MPS = Master pay scale

Notes

1.A multiplier of 2.1 is applied to the average MPS point in case of site supervision including the consultant's overheads and profit, as the staff will be employed in the consultant's office. (At 1.4.1996, MPS Pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 p.m.).

2.The above figures are based on estimates prepared by the Director of Architectural Services (D Arch S). We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive bidding system.

3.Upon its establishment on 1 August 1996 under the Trading Funds Ordiance, the EMSTF starts charging government departments for design and technical consultancy services for electrical and mechanical installations. The services rendered for this project cover the monitoring of installation testing and commissioning, including the maintenance period. The figures above are based on estimates prepared by D Arch S. The actual cost for the service charges is subject to further negotiation between the Government and the EMSTF.

4.Upon its establishment on 1 June 1995 under the Trading Funds Ordiance, the OFTATF starts charging government departments for design and technical consultancy services for telecommunications installations. The services rendered for this project cover the monitoring of installation testing and commissioning, including the maintenance period. The figures above are based on estimates prepared by D Arch S. The actual cost for the service charges is subject to further negotiation between the Government and the OFTATF.

(JJ201)