For discussion
PWSC(98-99)23
on 7 October 1998

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 709 - WATERWORKS
Water Supplies - Combined fresh/salt water supplies
86WC - Water Supply to Pak Shek Kok, Tai Po - remaining works

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 86WC, entitled Water Supply to Pak Shek Kok, Tai Po - advance mainlaying along Tolo Highway to Category A at an estimated cost of $18.2 million in money-of-the-day prices; and

2. the retention of the remainder of 86WC in Category B.

PROBLEM

By 2002, the existing water supply system serving Pak Shek Kok and its adjoining areas will not be able to cope with the anticipated increase in water demand arising from the planned developments ^- in the areas.

PROPOSAL

2. THE DIRector of Water Supplies (DWS), with the support of the Secretary for Works, proposes to upgrade part of 86WC to Category A at an estimated cost of $18.2 million in money-of-the-day (MOD) prices for the laying of a fresh water main and a salt water main in conjunction with roadworks along Tolo Highway.

PROJECT SCOPE AND NATURE

3. The scope of works under 86WC comprises -

1. construction of a fresh water service reservoir with a capacity of 5 500 cubic metres;

2. construction of a fresh water pumping station to cope with a demand of 5 500 cubic metres per day; and

3. laying of the associated 6.6 kilometres of fresh water mains of sizes ranging from 200 to 600 millimetres in diameter and 6.2 kilometres of salt water mains of sizes ranging from 150 to 300 millimetres in diameter in Pak Shek Kok and its adjoining areas.

4. The part of 86WC we now propose to upgrade to Category A comprises the laying of about 100 metres of fresh water mains of 600 millimetres diameter and 2.4 kilometres of salt water mains of sizes ranging from 200 to 300 millimetres in diameter under the WORks in paragraph 3(c) above.

JUSTIFICATION

5. The existing fresh water supply system serving Pak Shek Kok and its adjoining areas has a capacity of about 1 370 cubic metres per day. This will not be able to cater for a population of about 3 000 in 2002 with a daily demand of ABOUT 1 400 CUBIC MEtres. At present, there is no salt water supply in the area and the residents there rely on fresh water for flushing. Moreover, given the anticipated rapid development in the area, we envisage that the local population will increase further to about 12 800 in 2005-06, resulting in a fresh water demand of about 5 500 cubic metres a day and a salt water demand of about 900 cubic metres a day. DWS plans to expand the existing fresh water system and extend the salt water supply to the area as detailed in paragraph 3 above to meet the projected growth in water demand up to 2005-06.

6. The Director of Highways (DHy) is undertaking a roadwork's project under "Widening of Tolo Highway between Island House Interchange and Ma Liu Shui Interchange" which includes roadworks along Tolo Highway. The mainlaying works described in paragraph 4 above will fall within the project boundaries of 561TH. To avoid unnecessary repetitive road opening and interface problems arising from two contractors working on the same site, we propose to upgrade the part of 86WC detailed in paragraph 4 above so that we may incorporate the proposed mainlaying work into the roadworks contracts under 561TH.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $18.2 million in MOD prices (see paragraph 8 below), made up as follows -

			$ million
(a)	Pipe materials		2.6
(b)	Mainlaying		8.5
(c)	Consultants' staff cost for		1.3
	(i) Contract administration	0.1
	(ii) Resident site staff cost	1.2
(d)	Contingencies		1.2
Sub-total			13.6	(at December 1997 prices)
(e)	Inflation allowance		4.6
Total			18.2	(in MOD prices)

A breakdown by man months of the estimate for consultants' fees including resident site staff expenses is at the Enclosure.

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

Year	$ million (Dec 1997)	Price adjustment factor	$ million (MOD)
1999 - 2000	0.5	1.14878	0.6
2000 - 01	4.8	1.24642	6.0
2001 - 02	5.9	1.35237	8.0
2002 - 03	1.8	1.46732	2.6
2003 - 04	0.6	1.59204	1.0
	_____		_____
	13.6		18.2
	_____		_____

Thu, Oct 22, 19989. We derived the MOD estimates on the basis of the Government's forecast of trend labour and construction prices for the period 1999 and 2004. We will incorporate the proposed mainlaying works into DHy's roadworks contract. We will tender the work under a remeasurement contract because the quantities of the works are subject to variation during construction to suit the actual site conditions. We will provide adjustment for inflation in the contract because the contract period is expected to be longer than 21 months.

10. We estimate the additional annually recurrent expenditure arising from the project to be $152,000.

11. The project by itself will lead to an increase in water charges by a maximum of 0.01% in real terms by 2004 ³ .

PUBLIC CONSULTATION

12. We consulted the Tai Po Provisional District Board (TPPDB) on 7 July 1998. TPPDB supported the project.

ENVIRONMENTAL IMPLICATIONS

13. The Director of Environmental Protection vetted the Preliminary Environmental Review (PER) conducted by DWS in July 1995. The PER concluded that the mainlaying works would have no long term environmental impact and no Environmental Impact Assessment is required. We will control noise, dust and site run-off during construction to comply with established standards and guidelines through the implementation of mitigation measures in relevant contracts.

LAND ACQUISITION

14. The proposed works do not require land acquisition.

Background INFORMATION

15. We upgraded 86WC to Category B in September 1996. In December 1997, Finance Committee approved the upgrading of part of 86WC to Category A as 87WC "Water Supply to Pak Shek Kok, Tai Po - advance mainlaying along Yau King Lane" at an estimate cost of $24.2 million in MOD prices. The scope of works of 87WC comprises the laying of about 1.6 kilometres of fresh water main and 0.5 kilometres of salt water mains in Pak Shek Kok, Tai Po and its adjoining areas. We commenced the works in January 1998 for completion in 2001.

16. As regards the mainlaying works which we now propose to upgrade to Category A, we have engaged consultants to complete the detaiLED DESIGN AT A COST OF $120,000. We charged this amount to the block allocation Subhead 9100WX "Waterworks, studies and investigation for items in Category D of the Public Works Programme". We plan to start the proposed mainlaying works in December 1998 for completion in December 2001 to tie in with the roadworks programme under 561TH.

17. DWS is continuing with the detailed design work for the remaining works under the project with the intention of starting construction in mid 1999 for completion in late 2001.

Works Bureau
September 1998

(PWSC0005/WIN1)



-. The types of planned developments in the concerned area include low-density residential buildings, village type houses and a proposed off-campus sports centre for the Hong Kong Institute of Education.

3. The increase on water charges is calculated on the assumption that the water demand remains static during the period from 1998 to 2004 and the amount of Government subsidy in the waterworks operations is to be contained at the present level.

Enclosure to PWSC(98-99)23

Breakdown of estimates for consultants' fees

consultants ' staff costs		Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($ million)
(a) Administration of contract	Professional Technical	0.3 0.1	40 16	3.0 3.0	0.05 0.01
					____
				Sub-total	0.06
					____
				Say	0.10
(b) Site supervision by resident site staff employed by consultants	Professional Technical	4.5 16.1	40 16	2.1 2.1	0.56 0.67
					____
				Sub-total	1.23
		Say			1.20
		Total consultants ' staff costs			1.30
					____

*MPS = Master Pay Scale

Notes

1. A multiplier factor of 3.0 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 (At 1.4.97, MPS pt. 40 = $59,210 p.m. and MPS pt. 16 = $19,860 p.m.). A multiplier factor of 2.1 is applied to the average MPS in the case of site staff supplied by the consultants.

2. The figures given above are based on estimates prepared by the Director of Water Supplies. The consultancy works for this project will be included as part of the overall consultancy agreement for 561TH. We will know the actual consultants' fees upon finalisation of the account of the works contract.

(PWSC0005/WIN1)