For discussion PWSC(97-98)3
on 23 April 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 711 - HOUSING
Territory Development
552CL - Remaining development in Tung Chung and Tai Ho -
comprehensive feasibility study

Members are invited to recommend to Finance Committee the upgrading of 552CL to Category A at an estimated cost of $55.2 million in money-of-the-day prices for carrying out a comprehensive feasibility study and site investigation for the remaining development in Tung Chung and Tai Ho.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION
552CL - Remaining development in Tung Chung and Tai Ho - comprehensive feasibility study

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PROBLEM

In the light of the increase in the territorial housing demand, we need to accelerate the provision of residential sites in Tung Chung and Tai Ho.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Housing and the Secretary for Planning, Environment and Lands, proposes to upgrade 552CL to Category A at an estimated cost of $55.2 million in money-of-the-day (MOD) prices for site investigation and engagement of consultants to carry out a comprehensive feasibility study for the remaining development in Tung Chung and Tai Ho.

PROJECT SCOPE AND NATURE

3. The scope of 552CL comprises a comprehensive feasibility study and site investigation works for the remaining development in Tung Chung and Tai Ho. The feasibility study element is made up of the following studies -

1. a comprehensive development review to determine the scope of Tung Chung and Tai Ho new town development phase 3 (by 2006) and phase 4 (by 2011);
2. an Environmental Impact Assessment (EIA) study;
3. a Transport and Traffic Impact Assessment (T&TIA) study;
4. a Drainage Impact Assessment (DIA) study;
5. a Marine Impact Assessment (MIA) study; and
6. an Engineering study.

JUSTIFICATION

4. We had intended to develop Tung Chung and Tai Ho as a new town in five phases based on the recommendations of the North Lantau Development Study which was completed in April 1992. The phase 1 and phase 2 developments are progressing well (see paragraphs 16 and 17 below) and, when completed, will accommodate a population of 20 000 by 1998 and 88 000 by 2002. According to the original scope and programme of the new town development, the latter will gradually develop to accommodate a population of 120 000 by 2006 (phase 3) and 210 000 by 2011 (phase 4). The ultimate population following the completion of phase 5 was to be 260 000.

5. The Director of Planning (D of Plan) completed the TDSR in mid 1996 which identified a need to increase the development potential of Tung Chung and Tai Ho (among other areas) in the medium to long term to help meet the territorial housing demand. In November 1996, the Administration approved a Development Statement (DS) for these two areas which recommended an increase in the population targets of the two areas from 120 000 to 160 000 by year 2006 (phase 3) and from 210 000 to 320 000 by year 2011 (phase 4). To achieve these population targets, we need to provide more residential sites by re-zoning, increase the intensity of some housing sites by upzoning and advance to phase 3 part of the original phase 4 works. These measures will provide a greater number of residential sites for development purposes in a shorter time frame.

6. In order to cope with the projected 50% increase in target population in Tung Chung and Tai Ho by year 2011, we propose to carry out a comprehensive development review of the areas in respect of land use, site availability, configuration of the future reclamation, provision of utilities, mode of transportation, open spaces and other community facilities, as well as a review of the project cost and implementation programme. In conjunction with this review, we need to carry out impact assessments and engineering studies in order to ascertain the feasibility of the engineering works. Extensive site investigation works will also be required owing to the scale of the site involved and the complexity of the ground conditions, which may affect the development potential of the areas. These investigations will establish the soil properties and design parameters which will enable us to optimise the engineering design for the proposed works.

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

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the project to be $55.2 million in MOD prices (see paragraphs 9 below), made up as follows -

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

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 forecast of trend labour and construction prices for the period 1997 to 2000. We will award the proposed consultancy on a lump-sum basis with inflation adjustment because the consultancy will exceed 12 months. We will tender the site investigation works under a standard remeasurement contract because the exact quantities of works involved may vary depending on the actual ground conditions. We will not provide for inflation adjustment in this contract as the contract period will not exceed 21 months.

11. The proposed study has no recurrent financial implications.

PUBLIC CONSULTATION

12. In late 1996, Director of Planning consulted the public on the Tung Chung and Tai Ho phase 3 and phase 4 developments in the context of the TDSR. No objection was received to the proposal to identify Tung Chung and Tai Ho as major strategic growth areas. We will consult the Islands District Board on the latest findings and development of the project, both during the course of the study and upon its completion.

ENVIRONMENTAL IMPLICATIONS

13. The proposed consultancy will have no adverse environmental implications. As part of the comprehensive feasibility study proposed for the remaining development, the consultants will conduct an environmental impact assessment study to confirm the feasibility of the proposed development and to identify all necessary environmental mitigation measures during both construction and operational phases. The estimated cost of this study is $3.3 million and has been included in the overall cost of the proposed consultancy.

LAND ACQUISITION

14. The study does not require land acquisition.

BACKGROUND INFORMATION

15. We upgraded 552CL to Category B in January 1997. We plan to start the proposed feasibility study in July 1997 for completion in December 1998.

16. The phase 1 development in Tung Chung and Tai Ho provides principally a supporting community for the new airport at Chek Lap Kok. We commenced the phase 1 reclamation and site formation works in April 1992. We substantially completed all these works together with the necessary back-up infrastructure required to serve the new town in January 1997.

17. We commenced the engineering works for the phase 2 development in November 1994 for completion in mid 2000. These cover reclamation, site formation and provision of infrastructure.

Housing Branch
April 1997
(JJ175)

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Enclosure to PWSC(97-98)3

552CL - Remaining development in Tung Chung and Tai Ho - comprehensive feasibility study

*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 1.4.96, MPS pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 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.

(JJ175)

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