For discussion FCR(97-98)71
on 5 December 1997
ITEM FOR FINANCE COMMITTEE
CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Transport Department
New Subhead "Replacement of toll collection and audit system in the Aberdeen Tunnel"
Members are invited to approve a new commitment of $23 million for replacing the toll collection and audit system in the Aberdeen Tunnel.
PROBLEM
The toll collection and audit system in the Aberdeen Tunnel is approaching the end of its usable life and is beyond economical repair.
PROPOSAL
2. We propose to replace the toll collection and audit system at an estimated cost of $23 million.
JUSTIFICATION
3. The existing toll collection system in the Aberdeen Tunnel was installed in 1982 when the tunnel was opened to traffic. The system comprises the toll booth equipment, toll lane equipment and central control equipment. The toll booth equipment and toll lane equipment record and transmit toll collection and traffic flow data to the central control equipment for storage. Such data are essential for accounting, auditing and planning purposes.
4. After 15 years of operation, the various components of the system are now showing signs of ageing, with reducing reliability and accuracy. The system experienced 254 breakdowns in the past 12 months. Although a breakdown of the system has no effect on the traffic flow, it makes verification of the toll collected difficult. Also, discrepancies between toll collection data and traffic flow data may occur. This has hampered accounting and auditing work as we need to spend more time and effort to identify the cause of the discrepancies and to reconcile the figures. Furthermore, the existing system which is capable of classifying traffic into three groups only has limitations in monitoring and forward planning work.
5. The proposed replacement system will be more reliable and accurate. It will be more fault tolerant, with the data remaining intact even in the event of a prolonged breakdown of the central computer. Besides bringing about greater efficiency in accounting and auditing work, the new system will also facilitate traffic planning and analysis by virtue of its ability to classify traffic into nine groups.
6. Subject to funding approval, we plan to start the project in April 1998 for completion in August 2000.
FINANCIAL IMPLICATIONS
7. We estimate the capital cost of the project to be $23 million, made up as follows -
| $ million
|
|---|
| (a) | Replacement of | 16.2
|
| (i) toll booth equipment | 3.3 |
|
| (ii)toll lane equipment | 4.7 |
|
| (iii) central control equipment | 5.8 |
|
| (iv) cables | 4.2 |
|
| (b) | Software development and integration | 1.8
|
| (c) | Electrical and Mechancial Services Trading Fund (EMSTF) project management charges (detailed breakdown at the Enclosure) | 2.9
|
| (d) | Contingency (10% of (a) to (c)) | 2.1
|
| Total | 23.0
|
8. We will award the contract on a lump-sum fixed price basis. EMSTF will provide comprehensive engineering consultancy services, including feasibility study, definition of requirements, preparation of project programme and estimate, design, tendering, installation, testing and commissioning, monitoring equipment performance and rectification of defects during the defect liability period.
9. Subject to Members?approval, we will phase expenditure as
follows -
| Year | $ million
|
|---|
| 1998-99 | 1.9
|
| 1999-2000 | 14.5
|
| 2000-01 | 4.8
|
| 2001-02 | 1.8
|
| Total | 23.0
|
10. We will include sufficient provision for the project in the 1998-99 draft Estimates. Since this is a replacement system, there will be no additional recurrent expenditure.
11. The proposal will have no impact on the toll charge.
BACKGROUND INFORMATION
12. We have contracted out the operation and management of the Aberdeen Tunnel since 1991. About 22 million vehicles used the Aberdeen Tunnel in 1996-97. The annual gross revenue for the year was $110 million.
Transport Bureau
November 1997
Enclosure to FCR(97-98)71
Project Management Charges under
Electrical and Mechanical Services Trading Fund
for Replacement of Toll Collection and Audit System in the Aberdeen Tunnel
| % of charge on project value | Project estimate for electronics works
($ million) | Charge
($ million)
|
|---|
| First $0.4 million | 25% | 0.4 | 0.10
|
| Next $1.6 million | 20% | 1.6 | 0.32
|
| Next $13 million | 16.5% | 13.0 | 2.15
|
| Remainder | 11% | 3.0 | 0.33
|
| Total | 18.0 | 2.90
|
Last Updated on 5 December 1997
