PWSC(97-98)75
For discussion
on 26 November 1997


ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Support - Others
162GK -Maintenance depot for the Electrical and Mechanical Services Department, the Architectural Services Department and the Highways Department at Siu Ho Wan, Lantau Island

Members are invited to recommend to Finance Committee the upgrading of 162GK to Category A at an estimated cost of $330.3 million in money-of-the-day prices for the construction of a maintenance depot for the Electrical and Mechanical Services Department, the Architectural Services Department and the Highways Department at Siu Ho Wan, Lantau Island.

PROBLEM

The existing maintenance facilities of the Electrical and Mechanical Services Department (EMSD), the Architectural Services Department (Arch SD) and the Highways Department (HyD) on Lantau Island will not be able to cope with the significant increase in demand following the completion of the new airport at Chek Lap Kok, the Tung Chung New Town and the related developments on Lantau Island.

PROPOSAL

2.The Director of Architectural Services (D Arch S), with the support of the Secretary for Works, proposes to upgrade 162GK to Category A at an estimated cost of $330.3 million in money-of-the-day (MOD) prices for the construction of a combined depot for EMSD, Arch SD and HyD at Siu Ho Wan on Lantau Island.

PROJECT SCOPE AND NATURE

3.The scope of the project comprises the construction of a two-storey building on a site of 10 150 square metres. This includes the provision of -

  1. vehicle maintenance, inspection and servicing workshops, offices, stores and other ancillary areas including dangerous goods stores for EMSD;

  2. workshops and office accommodation for the maintenance term contractor, enclosure for building material storage, works area, stores and other ancillary areas including dangerous goods stores for Arch SD;

  3. offices and stores, workshops, material storage areas, plant and heavy vehicle parking areas and other ancillary areas for maintenance contractors of HyD; and

  4. 88 parking spaces.

Arch SD will take up about one-quarter of the floor area, while EMSD and HyD will have an approximately equal share of the remaining floor area.

JUSTIFICATION

4.With the commissioning of the new airport at Chek Lap Kok in April 1998 and the further development of the Tung Chung New Town, we expect that there will be a significant increase in the demand for maintenance services for roads, public facilities and government vehicles. The increased demand must be met at all times or else the efficient operation of the new airport and smooth development of the New Town would be jeopardised. To cater for the envisaged demand, we propose to rationalise the existing maintenance facilities of EMSD, Arch SD and HyD on Lantau Island and house them under one roof in a new maintenance depot to be built under 162GK at Siu Ho Wan. The need for building a combined depot for the three departments is detailed below -

EMSD - The existing EMSD depot at Mui Wo provides maintenance service for 140 government vehicles. With the imminent completion of the new airport and various projects related to the Ports and Airport Development on Lantau Island, the number of government vehicles running on Lantau Island will increase to about 350 in 1998. The current facilities in the existing workshop, which was constructed in 1968, are inadequate and can no longer cater for existing, not to mention the expected increase in the demand for maintenance service.

Arch SD-Arch SD currently maintains a temporary depot at Mui Wo for the provision of maintenance service to government buildings and public facilities on Lantau Island. The existing depot is limited in size and does not have sufficient capacity to provide efficient maintenance service for the substantial increase in the number of new government buildings and public facilities at the new airport and the Tung Chung New Town, which include police and fire stations, air traffic control facilities, airmail centre, clinics, schools and recreational facilities.

HyD-HyD currently maintains a temporary depot at Tai Ho for the maintenance of roads on Lantau Island. The existing depot is not weatherproof and does not have sufficient capacity to cope with the increase in demand arising from the completion of the new road networks serving the new airport, the Tung Chung New Town and other developments on Lantau Island.

5.As the maintenance facilities required by EMSD, Arch SD and HyD are similar in nature, we consider that they can be accommodated under the same roof. Indeed, building a combined and purpose-built depot for the three departments will not only be the most cost-effective solution, but will also maximise the utilisation of the proposed site at Siu Ho Wan.

FINANCIAL IMPLICATIONS

6.We estimate the capital cost of the project to be $330.3 million in MOD prices (see paragraph 7 below), made up as follows -

$ million
(a) Geotechnical works3.7
(b) Piling26.7
(c) Building138.2
(d) Building services48.8
(e) Drainage and external works10.4
(f) Furniture and equipment1.6
(g) Charges by Electrical and Mechanical Services Trading Fund(1)1.3
(h) Contingencies22.8
Sub-total253.5(at December 1996 prices)
(i) Inflation allowance76.8
Total330.3(in MOD prices)

The construction floor area (CFA) of the project is 18 987 sq. m. The construction unit cost, excluding furniture and equipment but including contingencies is $13 198 per sq. m. at December 1996 prices.

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

Year$ million
(Dec 1996)		Price
adjustment
factor 		$ million
(MOD)
1998 - 9935.51.1635841.3
1999 - 2000130.01.26830164.9
2000 - 0168.41.38244 94.6
2001 - 0219.61.5068629.5
253.5 330.3

8.We have derived the MOD estimates on the basis of the Government's forecast of trend and labour construction prices for the period 1998 to 2002. 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. In view of the tight construction programme, we will tender the project as a design-and-build contract. Under this form of contract, the contractor will be responsible for the detailed design and construction works but will operate within firm and precise parameters, including a cash-limited budget. We will define the scope and requirements of the project in sufficient detail to ensure that there will be no areas of design that the contractor could interpret in a way that is unacceptable to the Government.

9.We estimate the additional annually recurrent expenditure of the project to be $5.06 million.

PUBLIC CONSULTATION

10.We consulted the Islands District Board in February 1996. Members had no objection to the proposed project.

ENVIRONMENTAL IMPLICATIONS

11.D Arch S completed a Preliminary Environmental Review (PER) in April 1996 which concluded that the environmental impacts associated with the proposed maintenance depot will fall within the established criteria, thus it is not necessary to conduct an Environmental Impact Assessment. We will incorporate all mitigation measures recommended in the PER during detailed design stage. We will control dust, noise and site run-off nuisance during construction through the implementation of mitigation measures in relevant contracts.

LAND ACQUISITION

12.The project does not require land acquisition.

BACKGROUND INFORMATION

13.We upgraded 162GK to Category B in September 1996. We engaged consultants in October 1996 to carry out site investigation and charged an amount of $1.04 million to the block allocation Subhead 3100GX " Project feasibility studies, minor investigations and consultants' fees for items in Category D of the Public Works Programme " . We will invite tender in January 1998 and intend to award the contract in May 1998 with a view to start the construction works for this project in June 1998 for completion in January 2000.

14.The Planning Department has stipulated a height restriction of 20 metres for this site. As the proposed development will achieve 100% site coverage and reach the height limit, we are satisfied that it has fully utilised the development potential of this site.


Works Bureau
November 1997
(LL274)


(1) Upon its establishment on 1 August 1996 under the Trading Funds Ordinance, the Electrical and Mechanical Services Trading Fund (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 the Director of Architectural Services. The actual cost for the service charges is subject to further negotiation between the government and the EMSTF.