on 12 November 1997
ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE
HEAD 709 - WATERWORKS
Water Supplies - Combined fresh/salt water supplies projects
86WC - Water supply to Pak Shek Kok, Tai Po
Members are invited to recommend to Finance Committee -
- the upgrading of part of 86WC, entitled " Water supply to Pak Shek Kok, Tai Po - advance mainlaying along Yau King Lane " to Category A at an estimated cost of $24.2 million in money-of-the-day prices; and
- the retention of the remainder of 86WC, re-titled " Water supply to Pak Shek Kok, Tai Po - remaining works ", in Category B.
By 2002, the existing water supply system serving Pak Shek Kok and its adjoining areas will not be able to cope with the anticipated increase in water demand arising from the planned developments1 in the areas.
2.The Director of Water Supplies (DWS), with the support of the Secretary for Works, proposes to upgrade part of 86WC to Category A at an estimated cost of $24.2 million in money-of-the-day (MOD) prices for the laying of a fresh water main and a salt water main in conjunction with roadworks along Yau King Lane and its proposed extension (Road L39/1).
PROJECT SCOPE AND NATURE
3.The full scope of works under 86WC comprises -
- the construction of a fresh water service reservoir of 5 500 cubic metres capacity;
- the construction of a fresh water pumping station to cope with a demand of 5 500 cubic metres/day; and
- the laying of the associated 6.6 kilometres of fresh water mains of diameter ranging from 200 to 600 millimetres and 6.2 kilometres of salt water mains of diameter ranging from 150 to 300 millimetres in Pak Shek Kok of Tai Po and its adjoining areas.
4.The part of 86WC we now propose to upgrade to Category A comprises the laying of about 1.6 kilometres of fresh water mains of diameter ranging from 200 to 600 millimetres and 0.5 kilometres of salt water mains of 150 millimetres diameter under the works in paragraph 3(c) above.
5.The existing fresh water supply system serving Pak Shek Kok and its adjoining areas has a capacity of about 1 370 cubic metres per day. This will not be able to cater for a population of about 3 000 with a daily demand of about 1 400 cubic metres by 2002. At present, there is no salt water supply in the area and the residents there rely on fresh water for flushing. Given the forecast rapid development in the area, we envisage that the local population will increase to about 12 800 in 2005-06, resulting in a fresh water demand of about 5 500 cubic metres a day and a salt water demand of about 900 cubic metres a day. DWS plans to expand the existing fresh water system and extend the salt water supply to the area as detailed in paragraph 3 to meet the projected growth in the water demand up to 2005-06.
6.The Director of Territory Development (DTD) has a site formation and roadwork project under 460CL2 " Tai Po development, remaining works - formation and servicing of areas 12 (part) and 39 " which includes roadwork along Yau King Lane and its extension (Road L39/1). The mainlaying works described in paragraph 4 above will fall within the project boundaries of 460CL. To avoid unnecessary road opening and interface problems arising from two contractors working on the same site, we propose to upgrade a part of 86WC as detailed in paragraph 4 above so that we may incorporate the proposed mainlaying work into the roadworks contract under 460CL.
7.We estimate the capital cost of the project to be $24.2 million in MOD prices (see paragraph 8 below), made up as follows -
|(c) Consultants' fees||0.3||
|(d)Resident site staff cost||1.6||
|Sub-total||18.6||(at December 1996 prices)
|Total||24.2||(in MOD prices)
A breakdown by man months of the estimate for consultants' fees including resident site staff expenses is at the Enclosure.
8.Subject to approval, we will phase the expenditure as follows -
|1997 - 98||0.2||1.06750||0.2
|1998 - 99||5.1||1.16358||5.9
|1999 - 2000||6.2||1.26830||7.9
|2000 - 01||4.1||1.38244||5.7
|2001 - 02||3.0||1.50686||4.5
9.We have derived the MOD estimates on the basis of the Government's forecast of trend labour and construction prices for the period 1997 and 2002. We shall incorporate the proposed mainlaying works into DTD's site formation and roadwork contract. We will tender the work under a lump sum contract because we have firm quantities for the majority of the works. We will provide adjustment for inflation in the contract because the contract period is expected to exceed 21 months.
10.We estimate the additional annually recurrent expenditure to be $121,960.
11.This project by itself would lead to an increase in water charges by a maximum of 0.02% in real terms by 20023 .
12.We consulted the Environmental Improvement and Works Committee of the Tai Po Provisional District Board on 12 September 1997. The Committee supported the project.
13.The Director of Environmental Protection vetted the Preliminary Environmental Review (PER) conducted by DWS in July 1995. The PER concluded that the mainlaying works would have no long term environmental impact and no Environmental Impact Assessment is required. We shall control noise, dust and site run-off nuisances during construction to comply with established standards and guidelines through the implementation of mitigation measures in relevant contracts.
14.The proposed works do not require land acquisition.
15.We upgraded 86WC to Category B in September 1996. We engaged consultants to carry out the detailed design for the proposed mainlaying works at a cost of $300,000 and charged this amount to the block allocation Subhead 9100WX " Waterworks, studies and investigation for items in Category D of the Public Works Programme " . We plan to start the proposed mainlaying works in January 1998 for completion in early 2001 to tie in with the roadworks programme under 460CL.
16.DWS is continuing with the detailed design work for the remaining works under the project with a target to start the construction works in early 1999 for completion in late 2001
1.The types of planned developments in the concerned area include low-density residential buildings, village type houses and a proposed off-campus sports centre for the Hong Kong Institute of Education.
2.We upgraded 460CL to Category B in May 1995. DTD has substantially completed the detailed design work for 460CL. A related paper PWSC(97-98)63 , for the upgrading of 460CL under Head 707 to Category A is also submitted for Members' approval at this meeting.
3.The increase in water charges is calculated on the assumption that the demand remains static during the period from 1997 to 2002 and the amount of Government subsidy into waterworks operations to be contained at the present price level.
Enclosure to PWSC(97-98)61
86WC - Water supply to Pak Shek Kok, Tai Po
DETAILS OF CONSULTANTs' FEES
Breakdown of estimates for consultants' fees
|Consultants' staff costs||Estimated|
|(c)||Site supervision by resident site staff employed by consultants
|Total consultants' staff cost
1.A multiplier factor of 3.0 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.). A multiplier factor of 2.1 is applied to the average MPS in the case of site staff supplied by the consultants.
2.The figures given above are based on estimates prepared by the Director of Water Supplies. Since the consultancy works for this project will be included as part of the overall consultancy agreement for New Town Development at Tai Po, we will only know the actual consultants' fees upon finalisation of the account of the works contract.