For discussion PWSC(96-97)93
on 22 January 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories North Development
(Civil Engineering - Land development)
477CL - Feasibility study for Pak Shek Kok development area

Members are invited to recommend to Finance Committee the upgrading of 477CL to Category A at an estimated cost of $24.7 million in money-of-the-day prices for carrying out a detailed feasibility study and site investigation for the development of Pak Shek Kok area.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
477CL - Feasibility study for Pak Shek Kok development area

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PROBLEM

We need to conduct a detailed feasibility study and site investigation for the development of Pak Shek Kok area.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands (SPEL), proposes to upgrade 477CL to Category A at an estimated cost of $24.7 million in money-of-the-day (MOD) prices for carrying out a detailed feasibility study and site investigation for the development of Pak Shek Kok area.

PROJECT SCOPE AND NATURE

3. The scope of 477CL comprises -

1. a detailed feasibility study for the development of Pak Shek Kok area which includes -
   1. a Planning Study to address the planning and landscaping aspects including preparation of a recommended Outline Development Plan and a Landscape Plan for the Pak Shek Kok development area;
   2. a Transport and Traffic Impact Assessment (T&TIA) Study;
   3. a Drainage Impact Assessment (DIA) Study;
   4. an Environmental Impact Assessment (EIA) Study;
   5. an Engineering Study on infrastructure; and
   6. a Project Cost and Implementation Study; and
2. site investigation.

JUSTIFICATION

4. The Director of Planning completed an Action Area Plan for Pak Shek Kok in 1995 which recommended a preliminary layout for the area and a land-use framework to guide future development in Pak Shek Kok. The proposed land uses included in the preliminary layout cover the sports centre of the Hong Kong Institute of Education, a science park and sites for expanding tertiary education institutions, residential and hotel developments, government, institutional and community facilities, and recreational uses.

5. The proposed Pak Shek Kok development area comprises about 103 hectares of land. Of this area, we formed about 35 hectares of land to the west of Tolo Highway in early 1980s when we constructed the Highway. We are reclaiming the remaining 68 hectares of land by public dumping in three stages (see paragraph 16 below).

6. We need a detailed feasibility study of the preliminary layout, as recommended in the Action Area Plan for Pak Shek Kok, to formulate a land-use plan to optimise the use of both existing land and proposed reclamation area for future development. The study will provide the necessary information to help us to decide how and in what time frame to implement the engineering works of the future development. We need to proceed with the feasibility study now to enable the phasing of the supporting infrastructure to tie in with the reclamation works. Stage I of the reclamation works started in October 1996 for completion in January 1998. Apart from the study, we need to carry out the necessary site investigation to ascertain the feasibility of the engineering works of the future development.

7. DTD proposes to engage consultants to undertake the study and to supervise the associated site investigation as the Department has insufficient in-house resources.

FINANCIAL IMPLICATIONS

8. We estimate the cost of the project to be $24.7 million in MOD prices (see paragraph 9 below), made up as follows -

A breakdown by man months of the estimate for consultants’ fees is at the Enclosure. We will use Government’s term contractor to undertake the necessary site investigation.

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

10. We have derived the MOD estimate on the basis of the Government’s forecasts of trend labour and construction prices for the period 1996 to 1999. We will award the proposed consultancy on a lump-sum basis with provision for adjustment due to inflation as the consultancy will exceed 12 months.

11. The proposed consultancy has no recurrent financial implications.

PUBLIC CONSULTATION

12. We consider public consultation unnecessary at this stage as this is a feasibility study.

ENVIRONMENTAL IMPLICATIONS

13. In the course of their work, the consultants will conduct an EIA study to identify and assess the potential environmental impacts arising from the proposed development. They will also identify and propose the necessary environmental mitigation measures during the construction and operational phases of the project. The estimated cost of the EIA study is $2.5 million and is part of the overall cost of the proposed consultancy.

LAND ACQUISITION

14. The study does not require land acquisition.

BACKGROUND INFORMATION

15. We upgraded 477CL to Category B in September 1996. We plan to start the proposed feasibility study in March 1997 for completion in June 1998.

16. To meet the demand for public dumping facilities in the north-eastern New Territories, the Director of Civil Engineering (DCE) is currently implementing the first stage of a public dump at Pak Shek Kok under 466CL "Pak Shek Kok reclamation for dumping, stage I". The stage I reclamation started in October 1996 and is scheduled for completion in January 1998. DCE plans to implement the remaining reclamation in two further stages in early 1998 for completion in 2004.

(LL190)

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Enclosure to PWSC(96-97)93

477CL - Feasibility study for Pak Shek Kok development area

*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. (At 1.4.95, MPS pt. 40 = $51,440 p.m. and MPS pt. 16 = $17,270 p.m.)

(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.

(LL190)

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