For discussion
on 24 February 1999

PWSC(98-99)70

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
439CL - Wan Chai development phase II - consultants’ fees and site investigation

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 439CL, entitled "Wan Chai development phase II - comprehensive feasibility study and site investigation", to Category A at an estimated cost of $60 million in money-of-the-day prices; and

2. the retention of the remainder of 439CL in Category B.

PROBLEM

We need to implement the proposed Wan Chai development phase II (WDII) which includes, among other infrastructural facilities, the much needed Central-Wan Chai Bypass (CWB) and Island Eastern Corridor Link (IECL). Before we can proceed with the detailed design and construction of WDII, we need to carry out site investigation and a comprehensive feasibility study.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 439CL to Category A at an estimated cost of $60 million in money-of-the-day (MOD) prices for carrying out site investigation and engaging consultants for a comprehensive feasibility study for WDII.

PROJECT SCOPE AND NATURE

3.The scope of 439CL comprises site investigation, studies and detailed design for WDII.

4.The part of the project we now propose to upgrade to Category A comprises site investigation and a comprehensive feasibility study for WDII. The feasibility study (the Study) includes the following specific studies -

1. a roads alignment option study;

2. a planning study;

3. an Environmental Impact Assessment (EIA) study;

4. a Transport and Traffic Impact Assessment (T&TIA) study;

5. a Drainage Impact Assessment (DIA) study;

6. a Marine Impact Assessment (MIA) study;

7. an engineering study; and

8. a reprovisioning study, in relation to the waterfront facilities.

JUSTIFICATION

5.The primary objective of the Study is to investigate the feasibility of providing along the waterfront of Wan Chai and Causeway Bay the following key transport infrastructure and essential facilities -

1. the Central-Wan Chai Bypass;

2. the Island Eastern Corridor Link;

3. the North Hong Kong Island Line (NHKIL);

4. the necessary at-grade connection roads to facilitate through traffic from Central to Wan Chai (via the new roads on Central Reclamation Phase III and the Convention and Exhibition Centre);

5. the landfall for a possible fourth cross harbour road and rail link, and a Mass Transportation Centre; and

6. a reprovisioned Government helipad.

6.For the key transport facilities, we have illustrated their tentative alignments on the site plan. The final alignments will be subject to the findings of the Study. As the alignments of the key infrastructure might affect some of the existing waterfront facilities, the Study will also cover the reprovisioning of any existing waterfront facilities that may be affected. The Study will recommend any necessary measures to improve the shoreline to create an attractive environment for the enjoyment of the community. We would give due emphasis to the overall design of the new waterfront to ensure that the development of the above transport infrastructure facilities would not diminish the value of the waterfront. The Administration would specifically request the Study consultant to avoid reclamation as far as possible. The objective of the proposed WDII is not to reclaim land for development and there is no pre-determined limit of reclamation.

7.The Final Report for the Updating of the Second Comprehensive Transport Study, which was completed in 1993, indicated that the traffic demand on certain sections of the existing Connaught Road Central / Harcourt Road / Gloucester Road (CHG) corridor will exceed the design capacity by up to 100% during peak hours in the early part of the next decade. In fact, traffic congestion along CHG corridor is already a regular occurrence. To avoid future grid-lock, we need to construct the CWB and IECL as soon as possible. The CWB and IECL will link the Rumsey Street Flyover with the Island Eastern Corridor, thus forming a parallel and complementary route to relieve the traffic burden of the CHG corridor.

8. To meet the target of completing the CWB and IECL in 2010, we need to commence site investigation and a comprehensive feasibility study for WDII in June 1999. This has taken into account the fact that it would take four years to complete the necessary procedures before actual construction commences (e.g. selecting consultants, conducting comprehensive feasibility study, completing the necessary statutory procedures, producing detailed design), five and a half years to complete the land formation and two more years to complete the CWB and IECL. The site investigation and the comprehensive feasibility study for the WDII will address the essential aspects of planning, environmental impact assessment, traffic and transport, engineering, port and marine works, and provide input for the preparation of an Outline Zoning Plan of WDII to be gazetted in 2001.

9. We need the NHKIL to provide relief to the congestion in the MTR Island Line. The Second Railway Development Study (RDS2) is investigating the provision of a fourth cross harbour rail link and a Mass Transportation Centre at Wan Chai as one of the options. The final decision on these two transport facilities will be subject to the findings of RDS2, which will be available later this year. However, they have to be taken into account in the Study for WDII for more comprehensive planning of the area. The initial findings of the third comprehensive transport study show that a fourth cross harbour road tunnel may be required in the longer term. The feasibility study will examine how to proceed with WDII without pre-empting the future possibility of a fourth cross harbour road link.

10. Due to insufficient in-house resources, DTD proposes to engage consultants to undertake the comprehensive feasibility study and to supervise site investigation works.

FINANCIAL IMPLICATIONS

11 We estimate the capital cost of the project to be $60 million in MOD prices (see paragraph 12 below), made up as follows

		$ million
(a) Site investigation and laboratory Testing		26.6
(b) Consultants' fees for -		20.0
(i) Service connection roads option study	1.5
(ii) Planning study	2.0
(iii) EIA study	3.5
(iv) T&TIA study	2.6
(v) DIA study	1.0
(vi) MIA study	1.5
(vii) Engineering study	2.5
(viii) Reprovisioning study	3.2
(ix) Supervision of site investigation	2.2
(c) Contingencies		4.7
		_______
Sub-total		51.3	(at December 1997 prices)
(d) rovision for price adjustment		8.7 _____
Total		60.0	(in MOD prices)
		_______

A breakdown by man-months of the estimate for consultants’ fees is at the Enclosure.

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

Year	$ million (Dec 97)Price Adjustment Factor	$ million (MOD)
1999 - 2000	26.6	1.12890	30.0
2000 - 2001	20.0	1.19663	24.0
2001 - 2002	4.7	1.26843	6.0
	_______		_______
	51.3
	60.0
	_______		_______

13. We have derived the MOD estimate on the basis of the Government's forecasts of trend labour and construction prices for the period 1999 to 2002. We will award the proposed consultancy on a lump sum basis with provision for price adjustments as the consultancy period will exceed 12 months. We will tender the site investigation works and laboratory testing under a standard remeasurement contract because the quantities of works involved may vary depending on the actual ground conditions. This contract will not provide for price adjustments as the contract period will not exceed 21 months.

14. The proposed consultancy and site investigation works have no annually recurrent financial implications.

PUBLIC CONSULTATION

15. The Administration consulted the Legislative Council Planning, Lands and Works Panel on 15 October 1998 and 14 January 1999. Most Members supported this project and recognised the urgency of the proposed transport infrastructure. Some Members, however, were concerned over the reprovisioning of the Government heliport along the waterfront of Wan Chai/Causeway Bay. We are issuing an information note to address Members’ concern on the heliport, concurrently.

16. We will consult the Wan Chai and Eastern District Boards as and when appropriate after completion of the proposed study.

ENVIRONMENTAL IMPLICATIONS

17. The proposed consultancy and site investigation works will not have any adverse environmental implications. As part of the detailed investigation for the proposed project and its associated reprovisioning works, the consultants will conduct an EIA study to identify, predict and assess the potential environmental impacts and the cumulative effects arising from the project. The consultants will also identify and propose necessary environmental mitigation measures during the construction and operational phases of the project. We have included $3.5 million for the EIA study in the overall cost of the proposed consultancy. The works covered by the proposed consultancy require an environmental permit under the EIA Ordinance (Cap. 499). We will apply for the environmental permit before carrying out the works.

LAND ACQUISITION

18. The proposed consultancy and site investigation works do not require land acquisition.

BACKGROUND INFORMATION

19. We included 439CL in Category B in July 1994. We plan to start the proposed consultancy and site investigation works in June 1999 for completion in December 2000. Subject to the findings of the study, we plan to commence the detailed design of WDII in mid 2001 with a view to commencing construction in early 2003 for completion in mid 2008.

20. The approval of the proposed site investigation and comprehensive study for WDII will not pre-empt the eventual scale of the proposed Central Reclamation Phase III. The scale of WDII is largely determined by the need to build the CWB and IECL, the alignment of which is restricted by the connecting points at the Hong Kong Convention Centre in the West and the Island Eastern Corridor in the east.

Planning, Environment and Lands Bureau
February 1999
(PWSC0072/WIN3)

Enclosure to PWSC(98-99)70

439CL - Wan Chai development phase II - consultants' fees and site investigation

Breakdown of the estimate for consultants’ fees

Consultants' staff costs		Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($ million)
(a) Trunk Road Option Study	Professional Technica	l9.0 4.0	40 16	2.4 2.4	1.3 0.2
(b) Planning study	Professional Technical	12.0 6.0	40 16	2.4 2.4	1.7 0.3
(c) EIA study	Professional Technical	21.0 10.5	40 16	2.4 2.4	3.0 0.5
(d) T&TIA study	Professional Technical	15.5 8.0	40 16	2.4 2.4	2.2 0.4
(e) DIA study	Professional Technical	6.5 2.0	40 16	2.4 2.4	0.9 0.1
(f) MIA study	Professional Technical	9.0 4.0	40 16	2.4 2.4	1.3 0.2
(g) Engineering study	Professional Technical	15.0 8.5	40 16	2.4 2.4	2.1 0.4
(h) Reprovisioning study	Professional Technical	19.0 10.5	40 16	2.4 2.4	2.7 0.5
(i) Supervision of site investigation	Professional Technical	12.0 29.0	40 16	1.7 1.7	1.2 1.0
					_____
Total consultants' staff costs					20.0
					_____

* MPS = Master Pay Scale

Notes

1. A multiplier factor of 2.4 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 1.7 is applied in the case of site staff supplied by the consultants.
   
   
2. The figures given above are based on estimates prepared by the Director of Territory Development. We will only know the actual man months and fees when we have selected the consultants through the usual competitive lump sum fee bid system.