For discussion
PWSC(98-99)4
on 22 July 1998

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
437CL - Roadworks in Aldrich Bay reclamation area

Members are invited to recommend to Finance Committee the upgrading of 437CL to Category A at an estimated cost of $283.1 million in money-of-the-day prices for the provision of roads, drains and essential infrastructure in the Aldrich Bay reclamation area.

PROBLEM

There are no roads, drains and essential infrastructure to cater for the proposed developments in the Aldrich Bay reclamation area (ABR).

PROPOSAL

2. The Director of Territory Development, with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade 437CL to Category A at an estimated cost of $283.1 million in money-of-the-day (MOD) prices for the provision of roads, drains and essential infrastructure in the ABR.

PROJECT SCOPE AND NATURE

3. The scope of 437CL comprises the construction of -

1. roads 9/1, 9/2, 9/2A, 9/3 and 9/4 (totalling about 1 900 metres in length);

2. two footbridges A and B;

3. a pedestrian subway C;

4. two pedestrian subway extensions A and B;

5. a public transport terminus (PTT) at the ground level of the Urban Council Complex (UC Complex); and

6. associated drainage, sewerage and landscaping works.

JUSTIFICATION

4. The proposed developments in the ABR comprise public and private housing, public town parks, a UC Complex, schools and community facilities. Upon full development by late 2001, the ABR will accommodate a population of about 31 800 people. The Director of Housing (D of H) started the construction of a public housing project in the ABR in November 1997 for completion in December 2000. D of H also plans to start the Private Sector Participation Scheme (PSPS) housing development in August 1998 for completion in January 2001. To tie in with the proposed developments in the ABR, we need to provide the necessary engineering infrastructure in step with the housing projects.

5. We plan to construct roads, footbridges, pedestrian subways and a PTT in accordance with the layout plan of the ABR to cater for the traffic and pedestrian flows generated. To achieve our target of having the first population intake of some 13 500 by early 2001, we intend to commence the construction of the proposed works as soon as practicable after funding approval and have the roadworks, footbridges, pedestrian subways and associated drainage/sewerage works substantially completed not later than January 2001.

FINANCIAL IMPLICATIONS

6. We estimate the capital cost of the project to be $283.1 million in MOD prices (see paragraph 7 below), made up as follows -

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

8. We have derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices for the period between 1998 and 2003. We will tender the proposed road and associated drainage works under a standard remeasurement contract because the quantity of foundation works may vary depending on the actual ground conditions. The contract will provide for inflation adjustments because the contract period will exceed 21 months. We will incorporate the works for the proposed PTT into the contract for the construction of the UC Complex on a fixed-price lump sum basis because we can clearly define the scope of works in advance. The contract for the UC Complex will be managed by the Director of Architectural Services (D Arch S).

9. We estimate the annually recurrent expenditure of the proposed works to be $3.56 million.

PUBLIC CONSULTATION

10. We consulted the Eastern District Board on the proposed works on 4 April 1997. The District Board supported the proposal in principle.

11. We gazetted the proposed works under the Roads (Works, Use and Compensation) Ordinance on 30 May 1997. We received one objection from the residents of Felicity Garden claiming that the proposed MTR chiller plant site was too close to their properties and would cause environmental nuisance. In response to this objection, we decided to relocate the new chiller plant to a site further away from Felicity Garden. The residents agreed to withdraw their objection. Secretary for Transport authorised the proposed roadworks on 13 February 1998.

ENVIRONMENTAL IMPLICATIONS

12. We completed an Environmental Impact Assessment (EIA) study in February 1997. The study concluded that the proposed roads would not give rise to a traffic noise impact on the surrounding structures exceeding the established standards, except for a planned school at the western side of the reclamation area facing Roads 9/1 and 9/3. Since the provision of direct mitigation measures along these roads is not effective for abating the traffic noise, the study recommended that the planned school be provided with windows with good noise insulation and air conditioners on the affected facades. The Advisory Council on the Environment endorsed the EIA findings in March 1997. D Arch S upgraded the school project 216ES "Secondary school in Aldrich Bay reclamation, Shaukeiwan" to Category A on 20 June 1997 with the provision of appropriate window insulation and air conditioners included in the project.

13. As regards the short term impacts during construction, we will control noise, dust and site run-off through the implementation of appropriate mitigation measures in the works contract.

LAND ACQUISITION

14. We will resume the existing MTR chiller plant site of about 600 square metres near the Sai Wan Ho MTR Station. We will charge the cost of land acquisition and clearance, estimated at $45 million, to Head 701 – Land Acquisition.

BACKGROUND INFORMATION

15. We upgraded 437CL to Category B in March 1995. In May 1996, we engaged consultants to undertake the EIA and Traffic Impact Assessment studies for the engineering infrastructure in the ABR. We have charged the cost of $3 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". We completed the studies in February 1997.

16. The Director of Highways and D Arch S have substantially completed the detailed design and drawings for the proposed works using in-house resources.

17. We plan to start the proposed works as soon as practicable after funding approval, in any case not later than December 1998. The works will take some 36 months inclusive from start to finish. We will carry out the works in phases and aim to complete the entire project by November 2001.

Planning, Environment and Lands Bureau
July 1998