For discussion FCR(97-98)72
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 the lighting system in the Lion Rock Tunnel"
Members are invited to approve a new commitment of $77.6 million for replacing the lighting system in the Lion Rock Tunnel.
PROBLEM
The lighting system in the Lion Rock Tunnel is ageing and is becoming difficult to repair and maintain.
PROPOSAL
2. We propose to replace the lighting system in the Lion Rock Tunnel at an estimated cost of $77.6 million.
JUSTIFICATION
3. The present lighting system in the southbound and the northbound tubes of the Lion Rock Tunnel was installed in 1967 and 1978 respectively. We are facing increasing operational and maintenance problems with the system.
4. The light casings in the tunnel are seriously corroded due to the humid environment and as a result of long usage and pollution. They are no longer dust-proof and water-proof, and are covered with dirt which is very difficult to remove. The soiled light casings have led to a lowering of the lighting level in the tunnel. Furthermore, spare parts and accessories of these obsolete light fittings are difficult and costly to obtain. We are therefore finding it increasingly difficult to repair and maintain the lighting system promptly and cost-effectively.
5. If the system is not replaced early, faults may develop and the lighting level in the tunnel will deteriorate to an unacceptable level. Subject to Members?approval, we plan to start the project in September 1998 for completion in August 2000.
FINANCIAL IMPLICATIONS
6. We estimate the capital cost of the project to be $77.6 million, made up as follows -
| $million
|
|---|
| (a) | Replacement of | 54.1
|
| (i) light fittings inside tunnel tubes | 42.7 |
|
| (ii) switch gears inside tunnel recesses | 1.7 |
|
| (iii) tunnel lighting console in control room1.4 |
|
| (iv)cables | 8.3 |
|
| (b) | Improvements to uninterrupted power supply system | 7.9
|
| (c) | ELectrical and Mechanical Services Trading Fund (EMSTF) project management charges (Detailed breakdown at the Enclosure)
|
| (d) | Builder's work | 3.0
|
| (e) | Contingency (10% of (a) to (d)) | 7.1
|
| Total | 77.6
|
7. 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.
8. Subject to Members?approval, we will phase expenditure as follows -
| Year | $ million
|
|---|
| 1998-99 | 11.2
|
| 1999-2000 | 36.6
|
| 2000-01 | 26.8
|
| 2001-02 | 3.0
|
| Total | 77.6
|
9. 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.
10. This proposal will have no impact on the toll charge.
BACKGROUND INFORMATION
11. We have contracted out the operation and management of the Lion Rock Tunnel since 1993. About 34.5 million vehicles used the Lion Rock Tunnel in 1996-97. The annual gross revenue for the year was $207 million.
Transport Bureau
November 1997
Enclosure to FCR(97-98)72
Project Management Charge
Electrical and Mechanical Services Trading Fund
for Replacement of the Lighting System in the Lion Rock Tunnel
| % of charge on project value | Project estimate for electrical and mechanical works
($million) | Charge
($million)
|
|---|
| First $1 million | 20% | 1.0 | 0.2
|
| Next $4 million | 15% | 4.0 | 0.6
|
| Next $5 million | 10% | 5.0 | 0.5
|
| Remainder | 8% | 52.0 | 4.2
|
| Total | 62.0 | 5.5
|
Last Updated on 5 December 1997
