For discussion
on 2 December 1998
PWSC(98-99)50
ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
Hong Kong Island and Islands Development
Civil Engineering - Land development
487CL -Tung Chung development phase 3A, reclamation for areas 51, 52 (part) and 53 to 56
Members are invited to recommend to Finance Committee the upgrading of 487CL to Category A at an estimated cost of $712.7 million in money-of-the-day prices for the reclamation of the Tung Chung development phase 3A.
PROBLEM
We need to reclaim areas 51, 52 (part) and 53 to 56 in Tung Chung to provide land for the development of the Tung Chung and Tai Ho new town.
PROPOSAL
2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade 487CL to Category A at an estimated cost of $712.7 million in money-of-the-day (MOD) prices for the reclamation of areas 51, 52 (part) and 53 to 56 in Tung Chung.
PROJECT SCOPE AND NATURE
3. The scope of this project comprises -
- the reclamation of about 26 hectares of land;
- the construction of about 1.5 kilometres of seawall; and
- the extension of existing drainage culverts.
JUSTIFICATION
4. We completed the North Lantau Development Study in April 1992. The Study recommended that Tung Chung and Tai Ho in North Lantau be developed into a new town in phases. We completed phase 1 of the new town in mid 1997 and the phase 2 development is progressing well (see Background Information below). According to the original scope and development programme, the new town was planned to accommodate a population of 20 000 by 1998 and 87 000 by 2002 after the completion of phase 2. After the completion of phases 3 and 4, the new town's target population was planned to be 120 000 and 210 000 by 2006 and 2011, respectively. However, in mid 1996, the Director of Planning completed the Territorial Development Strategy Review (TDSR) which identified a need to increase the development potential of Tung Chung and Tai Ho to help to meet the long term territorial housing demand. Accordingly, under the revised approved Development Statement, the area will need to be gradually developed to accommodate a population of 216 000 by 2006 and 320 000 by 2011 at the completion of phases 3 and 4 respectively.
5. As part of the phase 3 development of the new town, we plan to start the reclamation works at areas 51, 52 (part) and 53 to 56 in Tung Chung under phase 3A in February 1999. The reclamation will provide land for housing developments to accommodate about 11 000 persons, commercial developments, open space, government/institution/ community facilities and roads. We plan to start work on the supporting engineering infrastructure such as roads and drains under a separate public works programme item soon after completion of the reclamation in 2001.
FINANCIAL IMPLICATIONS
6. We estimate the capital cost of the project to be $712.7 million in MOD prices (see paragraph 7 below), made up as follows -
| $ million
|
|---|
| (a) Reclamation | | 314.0
|
| (b) Seawall | | 115.0
|
| (c) Drainage culverts | | 47.0
|
| (d) Environmental monitoring and audit programme
| | 2.0
|
| (e) Consultant's fees | | 59.0
|
|
As DTD do not have sufficient in-house resources for the project, we propose to employ consultants to carry out the construction supervision. A breakdown by man months of the estimate for consultants fees is at the Enclosure.
7. Subject to approval, we will phase the expenditure as follows -
Year
| $ million
(Dec 1997)
| Price
adjustment
factor
| $ million
(MOD)
|
|---|
| 1998 - 99 | 1.0 | 1.06000 | 1.1
|
| 1999 -2000 | 190.0 | 1.12890 | 214.5
|
| 2000 - 01 | 195.0 | 1.19663 | 233.3
|
| 2001 - 02 | 155.0 | 1.26843 | 196.6
|
| 2002 - 03 | 50.0 | 1.34454 | 67.2
|
| ______ | | ______
|
| 591.0 | | 712.7
|
| ______ | | ______
|
8. We have derived the MOD estimate on the basis of the Government's latest forecast of trend labour and construction prices over the period 1998 to 2003. We will tender the proposed works under a standard re-measurement contract because the quantities of dredging and filling works may vary depending on actual ground conditions. The contract will provide for inflation adjustments as the contract period will exceed 21 months.
9. We estimate the annually recurrent expenditure of the project to be $1.81 million.
PUBLIC CONSULTATION
10. We gazetted the proposed reclamation together with the reclamation works for the Tung Chung development phases 1 and 2A under the Foreshore and Sea-bed (Reclamations) Ordinance on 9 February 1990 1 . We received four objections. The then Governor-in-Council overruled these objections and authorised the reclamation works without modifications on 23 July 1991.
11. We consulted the then Islands District Board on the North Lantau Recommended Outline Development Plan in May 1992 and the Tung Chung Town Centre Area Outline Zoning Plan in December 1993. Both plans included the proposed phase 3A development in Tung Chung. We received no objection to the proposal.
ENVIRONMENTAL IMPLICATIONS
12. In 1992, we completed an Environmental Impact Assessment (EIA) for the proposed reclamation works as an integral part of the North Lantau Development Study. The EIA concluded that the environmental impacts of the project can be controlled to meet established standard/guidelines through the implementation of standard mitigation measures. The then Environmental Pollution Advisory Committee2 endorsed the EIA study report in March 1992.
13. We will implement all mitigation measures and recommendations in the EIA study to minimise environmental impacts. We will implement an environmental monitoring and audit (EM&A) programme according to the EIA recommendations to oversee the environmental impacts during construction. We have included the cost of the EM&A programme in the project estimates.
14. The reclamation works of the project were authorised under the Foreshore and Sea-bed (Reclamations) Ordinance in July 1991, before the EIA Ordinance came into operation. The project is therefore exempted from the provisions of the Ordinance.
LAND ACQUISITION
15. The project does not require land acquisition.
BACKGROUND INFORMATION
16. We included 487CL in Category B in September 1998.
17. We engaged consultants to undertake the site investigation and design of the project and charged the cost of $14.9 million to the block allocation Subhead 7100CX "New towns and urban area works, studies and investigations for items in Category D of the Public Works Programme". The consultants have completed the detailed design and working drawings. We plan to start the works in February 1999 for completion by July 2001.
18. The phase 1 development in Tung Chung and Tai Ho provides principally a supporting community for the new airport in Chek Lap Kok. We commenced the phase 1 reclamation and site formation works in April 1992. We substantially completed all these works together with the necessary back-up infrastructure required to serve the new town in mid 1997.
19. We commenced the engineering works for the phase 2 development in November 1994 for completion by the end of 2002. These works cover reclamation, site formation and provision of infrastructure and are progressing according to schedule.
20. Phases 3 and 4 of the new town encompass developments at Tung Chung and Tai Ho, and comprise land formation, supporting infrastructure and government/institution/community facilities. We plan to commence work on phase 3 in early 2001 for completion in 2006.
----------------------------------------
Planning, Environment and Lands Bureau
November 1998
Enclosure to PWSC(98-99)50
487CL - North Lantau phase 3A development
in Tung Chung - engineering works
Breakdown of the estimate for consultants' fees
| Consultants' staff costs
| | Estimated
man-
months
| Average
MPS*
salary
point
| Multiplier
factor
| Estimated
fee
($ million)
|
|---|
| (a) Contract administration
| Professional
Technical
| 27
15
| 40
16
| 3.0
3.0
| 4.8
0.9
|
| (b) Preparation of as-built drawings
| Professional
Technical
| 4
10
| 40
16
| 3.0
3.0
| 0.7
0.6
|
| (c) Resident site staff costs
| Professional
Technical
| 270
441
| 40
16
| 2.1
2.1
| 33.6
18.4
______
|
Total consultant's staff costs |
59.0
______
|
* 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 resident site staff supplied by the consultants. (At 1.4.97, MPS pt. 40 = $59,210 p.m. and MPS pt. 16 = $19,860 p.m.).
2. The figures given above are based on estimates prepared by the Director of Territory Development. The consultancy works for this project have been included as part of the overall consultancy agreement for North Lantau Development.
[1These works were gazetted as part of the plan for the formation of land for the airport at Chek Lap Kok and related developments.]
[ 2This committee was the predecessor of the Advisory Council on the Environment (ACE).]
