For discussion
on 11 June 1999

52DS -	Ting Kau Development : sewerage and sewage treatment works including submarine outfall
126DS -	Sham Tseng sewerage and sewage treatment and disposal facilities

INTRODUCTION

This paper informs Members of the Administration's intention to seek approval to upgrade part of 52DS and 126DS to Category A for the construction of Ting Kau sewerage stage 1 works and Sham Tseng sewerage stage 2 phase 2 works. The works involved are estimated to cost $422.0 million in money-of-the-day (MOD) prices ($38.7 million from the original project item 52DS and $383.3 million from the original project item 126DS).

BACKGROUND

2. Ting Kau, Sham Tseng and Tsing Lung Tau are at present unsewered areas. Project 52DS and 126DS aim to provide a comprehensive sewerage system for these areas.

3. The original scope of project 52DS was to provide for permanent sewage collection and disposal facilities, including a submarine outfall, pumping station and sewage treatment works at Ting Kau for developments in the hinterland of Ting Kau Beach. In February 1989, the Environmental Protection Department appointed consultants to review the sewerage requirement in Tsuen Wan, Kwai Chung, Tsing Yi, Sham Tseng and Ting Kau. The study recommended, inter alia, the provision of a centralised sewage treatment works and submarine outfall at Sham Tseng for the Sham Tseng and Ting Kau areas and a comprehensive sewerage system stretching from Approach Beach in the east to Tsing Lung Tau in the west.

4. Based on the recommendation of the study, 126DS was included in Category C in August 1990 for the provision of the proposed sewage treatment works and submarine outfall at Sham Tseng to serve the Ting Kau, Sham Tseng and Tsing Lung Tau areas and a sewerage system to collect sewage from Sham Tseng and Tsing Lung Tau. At the same time, the scope of works of 52DS was revised for the provision of the sewage collection system to direct the sewage from Ting Kau to the proposed treatment facilities at Sham Tseng.

5. 126DS was upgraded to Category B in November 1991. Concurrently, we consulted the Town Planning Board (TPB) on reclaiming a piece of land to accommodate the proposed Sham Tseng sewage treatment works. Some TPB members suggested the idea of identifying a suitable cavern site instead of reclamation. Accordingly, we conducted a geological assessment study and compared the options of reclamation vis-a-vis cavern site. The study, completed in early 1993, confirmed that the reclamation option was a better arrangement. This was subsequently endorsed by the TPB in mid 1993. We then proceeded with the EIA study for the whole sewerage scheme which was then completed in 1995. We engaged consultants in May 1995 to undertake design and investigations for the Ting Kau and Sham Tseng sewerage works under Block Allocation Subhead 4006DX.

6. On 2 February 1996, Finance Committee approved the upgrading of part of 126DS to Category A as 279DS entitled "Sham Tseng sewerage stage 1 - Sham Tseng reclamation" at an approved project estimate of $176 million in MOD prices. The reclamation works started in February 1996 and completed in June 1997. The reclaimed land will accommodate the proposed sewage treatment works under 126DS.

7. On 30 October 1998, Finance Committee approved the upgrading of another part of 126DS to Category A as 218DS entitled "Sham Tseng sewerage, stage 2 phase 1" at an approved project estimate of $158.2 million in MOD prices for the Sham Tseng sewerage advance works. The works are scheduled to start in July 1999 for completion in August 2001.

PROJECT SCOPE AND NATURE

Sham Tseng Sewerage Stage 2 Phase 2

8. The part of 126DS to be upgraded to Category A (location map enclosed) comprises the construction of -

1. a sewage treatment works with a 160-metre long submarine outfall on the reclaimed land south of Garden Company Limited;
   
   
2. a sewage pumping station near Sham Tseng Kau Tsuen; and
   
   
3. about 1.8 kilometre of sewers and rising mains of diameters ranging from 225 to 400 millimetres along Castle Peak Road (Tsing Lung Tau Section) from Tsing Lung Tau to the proposed Sham Tseng sewage treatment works.

9. The remainder of 126DS for retention in Category B comprises pumping stations, rising mains and sewers in Sham Tseng and Tsing Lung Tau areas.

Ting Kau Sewerage Stage 1

10. The part of 52DS to be upgraded to Category A (location map enclosed) comprises the construction of about four kilometres of sewers and rising mains of diameters ranging from 150 to 400 millimetres along Castle Peak Road (Ting Kau Section) from Lido Beach to the proposed sewage treatment works at Sham Tseng.

11. The remainder of 52DS for retention in Category B comprises pumping stations, rising mains and sewers in Ting Kau.

JUSTIFICATION

12. As a result of recent housing developments, Ting Kau, Sham Tseng and Tsing Lung Tau areas are currently accommodating a population of around 28,000, which is expected to rise to around 55,000 by 2011. As there are at present no proper sewerage facilities in these areas, about 5,700 cubic metres of sewage per day generated from Ting Kau, Sham Tseng and Tsing Lung Tau areas is discharged to the nearby coastal waters without proper treatment, causing water pollution.

13. To rectify this situation, it is proposed that a comprehensive sewerage system, which includes a sewage treatment works and a submarine outfall at Sham Tseng and a comprehensive network of sewers and pumping stations, be built to serve the Ting Kau, Sham Tseng and Tsing Lung Tau areas. The whole package of works are covered under two project items, namely 52DS and 126DS.

14. The project is to be implemented in stages. It is now proposed to upgrade the works for the sewage treatment works, the submarine outfall, the sewage pumping station and the sewers along Castle Peak Road (Tsing Lung Tau Section) to Category A as the "Sham Tseng sewerage stage 2 phase 2" works. It is also proposed to upgrade the works for the sewers along Castle Peak Road (Ting Kau Section) to Category A as the "Ting Kau sewerage stage 1" works.

15. It is planned to start a design-and-build contract for the proposed sewage treatment works, submarine outfall and pumping station in April 2000 for completion in April 2003. It is intended to incorporate the works for the sewers along Castle Peak Road into the road works contracts under the Castle Peak Road improvement projects, namely 365TH "Castle Peak Road improvement between area 2 and Sham Tseng, Tsuen Wan" and 553TH "Castle Peak Road improvement between Sham Tseng and Ka Loon Tsuen, Tsuen Wan". The arrangement would minimise the impacts of the sewerage works on the road users of Castle Peak Road. Director of Highways has planned to start the road works in May 2000 for completion in February 2004.

16. The remaining sewerage works for Ting Kau, Sham Tseng and Tsing Lung Tau areas will be implemented under the "Ting Kau sewerage stage 2" works and the "Sham Tseng sewerage stage 3" works. Upon completion of the whole sewerage scheme in 2004, Ting Kau, Sham Tseng and Tsing Lung Tau will have a sewerage system with sufficient capacity to meet the sewage treatment demand up to the year 2011.

FINANCIAL IMPLICATIONS

17. The capital cost of the proposed works is estimated to be $422.0 million in MOD prices, made up as follows -

		$ million
		52DS		126DS
(a)	Sewers		27.8		8.7
(b)	Sewage treatment plant		-		220.0
	(i) civil works	-		130.0
	(ii) electrical and mechanical works	-		90.0
(c)	Submarine outfall		-		22.0
(d)	Sewage pumping station		-		10.6
	(i) civil works	-		6.2
	(ii) electrical and mechanical works	-		4.4
(e)	Consultants' fees		2.2		38.7
	(i) construction stage	0.1		2.0
	(ii) resident site staff	2.1		36.7
(f)	Contingencies		3.0		30.0
Sub-total			33.0		330.0	(at December 1998 prices)
(g)	Inflation allowance		5.7		53.3
Total			38.7		383.3	(in MOD prices)

A breakdown by man-months of the estimates for consultants' fees is at the Enclosure.

18. Subject to approval, expenditure will be phased as follows -

Year	$ million (Dec 1998)		Price adjustment factor	$ million (MOD)
	52DS	126DS		52DS	126DS
2000 - 01	0.5	20.0	1.06217	0.5	21.2
2001 - 02	3.0	58.0	1.09934	3.3	63.8
2002 - 03	9.5	90.0	1.13782	10.8	102.4
2003 - 04	9.570.0	1.17765	11.2	82.4
2004 - 05	7.5	60.0	1.21886	9.1	73.1
2005 - 06	3.0	32.0	1.26152	3.8	40.4
	33.0	330.0		38.7	383.3

19. The MOD estimates are based on Government's forecast of trend labour and construction prices over the period 2000 to 2006. The proposed sewage treatment works, submarine outfall and sewage pumping station at Sham Tseng will be tendered under a lump sum design-and-build contract with clearly defined scope of works. The trunk sewers will be entrusted to Highways Department for construction in conjunction with the proposed road works under the Castle Peak Road improvement projects. Adjustment to the tender price due to inflation will be allowed for as the contract will exceed 21 months.

20. The annual recurrent expenditure for maintenance works is estimated to be $12.0 million.

21. Based on the current level of expenditure on operation and maintenance of sewerage facilities, the proposed works will lead to an increase in the recurrent cost of providing sewage services of about 1.7% which will need to be taken into account in determining sewage charges.

PUBLIC CONSULTATION

22. The Tsuen Wan District Board was consulted on the proposed location of the sewage treatment works in May 1993. It had no objection to the construction of sewage treatment works on the reclamation in Sham Tseng. In September 1995, the Environmental Affairs Committee of the District Board was briefed on the environmental assessment of the project. The Committee supported the implementation of the project. The Environmental Affairs Committee of the Provisional Tsuen Wan District Board was consulted again in May 1998 and supported the implementation of the project.

ENVIRONMENTAL IMPLICATIONS

23. Section 9(2)(c) of the Environmental Impact Assessment Ordinance (EIAO) stipulates that projects which were gazetted under the Foreshore and Seabed (Reclamations) Ordinance (FSRO) before the commencement of the EIAO in April 1998 will be exempted from the provisions of EIAO. As the sewerage package for Ting Kau and Sham Tseng was gazetted under the FSRO before reclamation works at Sham Tseng took place from 1996 to 1997 for the proposed Sham Tseng Sewage Treatment Works, it is therefore an exempted project under the EIAO. That said, the environmental impacts of the sewerage works during the construction and operational stages have been assessed in the environmental impact assessment study, which was completed in August 1995. The EIA report has been lodged on the EIAO Register.

24. The EIA Study concluded that the environmental impacts of the project, including the effects of effluent discharge, sludge handling and disposal, noise and odour can be mitigated to within the established standards and guidelines. After completion of the project, pollution problems currently caused by the discharge of untreated sewage into the coastal waters of Ting Kau, Sham Tseng and Tsing Lung Tau will be reduced.

25. For short term impacts during construction, standard pollution control measures will be incorporated into the contract to control construction impacts to within the established standards and guidelines. The cost of implementing the environmental mitigation measures is estimated to be about $9.3 million. This cost has been included in the overall project estimate.

LAND ACQUISITION

26. The proposed Ting Kau sewerage stage 1 works and Sham Tseng sewerage stage 2 phase 2 works do not require any private land acquisition.


Planning, Environment and Lands Bureau
June 1999

Enclosure

Breakdown of estimates for consultants' fee

Consultants' staff costs			Estimated man months	Average MPS salary point	Multiplier factor	Estimated fee ($ million)
(a)	Consultants' fees for construction stage	Professional Technical	0.5 1	40 16	2.4 2.4	0.08 0.05
(b)	Site supervision by resident site staff employed by the consultants	Professional Technical	12 23	40 16	1.7 1.7	1.28 0.82
						2.23

Breakdown of estimates for consultants' fee

Consultants' staff costs			Estimated man months	Average MPS salary point	Multiplier factor	Estimated fee ($ million)
(a)	Consultants' fees for construction stage	Professional Technical	9 12	40 16	2.4 2.4	1.36 0.61
(b)	Site supervision by resident site staff employed by the consultants	Professional Technical	120 670	40 16	1.7 1.7	12.81 23.93
						38.71

Notes

1. A multiplier of 2.4 is applied to the average MPS point to arrive at the full staff cost including the consultants' overheads and profit, as the staff will be employed in the consultants' offices. A multiplier factor of 1.7 is applied in the case of site staff supplied by the consultants. (At 1.4.1998, MPS pt. 40 = $62,780 p.m. and MPS pt. 16 = $21,010 p.m.).

2. The consultants' fees for construction stage are based on the lump sum fees calculated in accordance with the consultancy agreement the Director of Drainage Services has with the consultants undertaking the design and construction of the project. The costs of resident site staff are based on estimates prepared by the Director of Drainage Services. We will only know the actual man months and actual costs when the construction works have completed.