For discussion
FCR(97-98)32
on 19 September 1997

ITEM FOR FINANCE COMMITTEE

HEAD 118 - PLANNING DEPARTMENT
Subhead 700 General other non-recurrent

Members are invited to approve a commitment of $19 million for a consultancy study on Stage Two Investigations of the Feasibility Study for Additional Cross-border Links.

PROBLEM

We lack detailed information on the feasibility and implications of building new cross-border road links in terms of the environment, ecology, land use planning, land acquisition, economic and financial viability and preliminary engineering issues.

PROPOSAL

2. We propose to engage consultants to carry out the Stage Two Investigations of the Feasibility Study for Additional Cross-border Links (Crosslinks Further Study) to assist decision-making on the building of new cross-border road links.

JUSTIFICATION

3. Due to the continuous increase in cross-border freight and passenger traffic in recent years, the Mainland authorities have proposed to construct new cross-border road links to Hong Kong across the Deep Bay from Shenzhen (the Shenzhen Western Corridor) and across the Lingdingyang from Zhuhai (the Lingdingyang Bridge). We need to assess the implications of these new road links on Hong Kong. As a preliminary review, we have carried out a Crosslinks Study¹ between September 1995 and May 1996.

4. The Crosslinks Study has outlined a highway network plan which Hong Kong needs in order to integrate with the proposed new road links. It also highlights a number of important issues that we would need to investigate in detail before we could take a decision on implementation of these new road links and their associated road networks. We have to make traffic forecasts and study their impact, assess the capacities of existing crossings, evaluate the economic and financial implications, appraise the environmental impact, define the land use and land acquisition requirement, and examine the engineering feasibility. In view of the complexities of the issues involved, and the need to deal with and the tight time frame for completing the related investigations, we have programmed the work under a three-stage feasibility study. The programme for the three-stage Crosslinks Further Study is at Enclosure 1. Stage One of the study on forecasts of traffic demand has started in April 1997 under a consultancy of $8 million.

5. While the Stage One Investigations study is underway, we propose to commence the Stage Two Investigations concurrently to establish as early as possible a more comprehensive basis to facilitate decision-making on the Crosslinks projects. The proposed study will enable us to -

1. identify the potential environmental, ecological, land use and land acquisition impacts and assess whether any adverse impacts are reversible;

2. identify the mitigation measures;

3. assess the economic and financial viability in greater detail for formulation of cost options; and

4. assess the preliminary engineering feasibility and develop preliminary designs.

6. As the investigations require multi-disciplinary expertise and experience, we are unable to undertake the task in-house and need to engage consultants to carry out the study.

FINANCIAL IMPLICATIONS

7. The Director of Planning estimates that the consultants will take 19 months to complete the study at a non-recurrent cost of $19 million. The cost breakdown is as follows -

8.As regards paragraph 7(a), a detailed breakdown of the estimated total consultancy fees of $15.77 million is at Enclosure 2. We will award the consultancy on a lump-sum basis.

9. As regards paragraph 7(b), the expenditure includes the printing of about 3 000 copies of reports and papers for the purpose of public consultation.

10. As regards paragraph 7(d), the expenditure is for inflation allowance at 6.6% per year to cater for general price increases.

11. The Director of Planning advises that the cash flow of the study will be as follows -

12. Subject to Members ' approval, we will approve under delegated authority the necessary supplementary provision of $3.5 million in 1997-98 to meet this year ' s expenditure and offset it by deleting an equivalent amount under Head 106 Miscellaneous Services Subhead 789 Additional commitments. We will include sufficient provision in the annual Estimates for the subsequent years.

13. As regards the study programme on the preliminary engineering feasibility and preliminary design for the Stage Two Investigations which are works-related, we have not included its cost, estimated at $8 million, in this funding proposal. We will arrange funding for the related tasks under the Capital Works Reserve Fund.

ENVIRONMENTAL IMPLICATIONS

14. We have carried out a very broad brush review of environmental issues in the Crosslinks Study. The Stage Two Investigations of the Crosslinks Further Study will address the detailed environmental implications through its environmental and ecological assessment studies and provide essential information for making a decision on the implementation of the Crosslinks projects.

BACKGROUND INFORMATION

15. The former Sino-British Co-ordinating Committee on Major Cross-border Infrastructure between Hong Kong and the Mainland considered the Report of the Crosslinks Study on 18 July 1996 and supported the need for Hong Kong to carry out further investigations to assess the feasibility of the Shenzhen Western Corridor and Lingdingyang Bridge proposals. This has since been reaffirmed between the Hong Kong Special Administrative Region Government and the Central People ' s Government. We have agreed to complete the whole range of investigations under the Crosslinks Further Study by mid 2000.

Planning, Environment and Lands Bureau
September 1997

1--The full name of the Crosslinks Study is "A Review of Hong Kong's Capacity to Cope with Additional Traffic Movement Associated with Proposed New Cross-border Transport Links."

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Enclosure 2 to FCR(97-98)32

Crosslinks Further Study - Stage Two Investigations Breakdown of the Estimates for Consultants ' Fees

Notes :

1. A multiplier factor of 3 is applied to the Master Pay Scale (MPS) points to arrive at the full staff costs including the consultant ' s overheads and profit, as the staff will be employed in the consultant ' s offices.

2. Average MPS points 40 ($59,210 per month) and 16 ($19,860 per month) are adopted for professional and technical grades respectively, except for items (ii) to (vi). It is expected that these tasks would involve the employment of professional and technical staff at lower average salary costs; hence average MPS points 33 ($43,940 per month) and 13 ($17,145 per month) are adopted respectively.

3. The average monthly salary costs are based on the rates at 1 April 1997.

4. The figures given in this table are based on estimates prepared by Director of Planning. We will only know the actual man months and fees required when we have selected the consultants through the usual competitive lump sum fee bidding system.

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