on 16 June 1999
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
HEAD 711 - HOUSING
OF FINANCE COMMITTEE
Civil Engineering - Land development
566CL - Development at Anderson Road
Members are invited to recommend to Finance Committee -
- the upgrading of part of 566CL, entitled "Development at Anderson Road - consultants' fees and site investigation", to Category A at an estimated cost of $57.5 million in money-of-the-day prices; and
- the retention of the remainder of 566CL in Category B.
We need to carry out detailed design and site investigation for developing a site between Anderson Road and Sau Mau Ping Road in East Kowloon for residential housing to meet growing demand of both public and private housing units.
2. The Director of Civil Engineering (DCE), with the support of the Secretary for Housing and Secretary for Planning, Environment and Lands, proposes to upgrade part of 566CL to Category A at an estimated cost of $57.5 million in money-of-the-day (MOD) prices for engaging consultants to undertake detailed design and site investigation for the residential development at Anderson Road.
PROJECT SCOPE AND NATURE
3. The scope of 566CL comprises the design and construction of site formation, roads, drains and the upgrading of existing infrastructure to provide usable land of about 20 hectares for housing and associated government, institution or community uses. The part of the project which we now propose to upgrade to Category A comprises detailed design work, site investigation, preparation of tender documents and assessment of tenders.
4. According to the Territorial Development Strategy Review completed in 1996, the projected housing supply in accordance with approved plans and programmes will not be able to meet the estimated housing demand after 2000/01. Consequently, the Director of Planning identified a site between Anderson Road and Sau Mau Ping Road (previously named as Anderson Road Quarry Stage II) as a potential site for boosting housing supply.
5. We completed the Planning and Engineering Feasibility Study for Development at Anderson Road under 556CL in October 1998. The study demonstrated the feasibility of the housing development proposal and recommended a preferred development scheme, which was endorsed by the
Town Planning Board at its meeting held on 12 March 1999. The proposed housing development comprises public and private housing developments which will accommodate a population of about 41,000 people. The relevant Outline Zoning Plan was gazetted on 28 May 1999 for consultation. The study also recommended that the detailed design work should commence in July 1999 so that construction works can commence in 2002 to meet the target date of the first population intake by 2009.
6. We estimate the cost of the detailed design and site investigation to be $57.5 million in MOD prices (see paragraph 7 below), made up as follows -
|(a) Consultants' fees||21.2
A breakdown by man-months of the estimate for consultants' fees is at Enclosure 1.
7. Subject to approval, we will phase the expenditure as follows -
|1999 - 2000||13.0||1.02625||13.3
|2000 - 2001||27.0||1.06217||28.7
|2001 - 2002||7.9||1.09934||8.7
|2002 - 2003||6.0||1.13782||6.8
8. We have derived the MOD estimates on the basis of the Government's latest forecasts of trend labour and construction prices over the period between 1999 and 2003. We will tender the proposed consultancy under a lump-sum contract. We will allow for price adjustment as the consultancy agreement will exceed 12 months. We will tender the site investigation works under a standard remeasurement contract because the quantities of works involved may vary depending on the actual ground conditions. The contract will not provide for inflation adjustments as the contract period will not exceed 21 months.
9. The proposed consultancy and site investigation will not give rise to any recurrent expenditure.
10. We presented the findings and recommendations of the planning and engineering feasibility study to the Kwun Tong Provisional District Board (KTPDB) and the District Development Committee of the Sai Kung Provisional District Board (SKPDB) in October 1998. Members had no objection to the project. We presented the findings of the Environmental Impact Assessment (EIA) report to the Environmental Improvement Committee of the KTPDB on 3 May 1999. Members expressed concern on the noise and dust impacts during construction and the traffic impacts of the development. We explained that the noise and dust impacts would be monitored and controlled during construction. We also explained that the traffic impacts of the development had been assessed and road improvement works will be implemented to ensure acceptable traffic conditions. We will further consult the KTPDB and SKPDB during the detailed design stage.
11. We consulted the Legislative Council's Panel on Housing on 3 May 1999. Members were concerned about the traffic situation in Kwun Tong district with the proposed increase of population arising from this development and other planned developments including the development near Choi Wan Road and Jordan Valley. We explained to Members that traffic impact assessments had been carried out. In the light of these, we propose to provide a link between the New Clear Water Bay Road and Lung Cheung Road, to upgrade a section of Po Lam Road for connection to the southern access road to the development and to carry out improvement works to a number of road junctions in the area. Implementation of these works will ensure that there will be no adverse traffic impact. A plan showing the location of the proposed road improvement works is enclosed at Enclosure 2.
12. In addition, Members were concerned about the dust and noise impacts from the on-going operations at the Anderson Road Quarry which would last until 2012, three years after the first population intake in 2009. We explained that environmental impact assessments, taking into account the wind directions and site topography, had been carried out which confirmed that a buffer distance of 125 metres between the quarry plant and the housing blocks would be adequate to control the quarry dust impact within acceptable limits. The degree of noise impact for the quarry was also found acceptable. We will conduct an environmental monitoring programme to ensure compliance with the relevant standards.
13. The development project is a designated project (DP) under Schedule 3 of the EIA Ordinance requiring an EIA report. The project includes local widening of a portion of Po Lam Road, a DP under Schedule 2 of EIA Ordinance requiring an Environmental Permit (EP) prior to commencement of construction.
14. On 2 March 1999, the EIA report was approved under the EIA Ordinance with conditions, one of which is that we will plant not less than 13.4 hectares of woodland on soft cut slopes using native species to compensate for the loss of woodland. The EIA report concluded that the environmental impacts of the project could meet the criteria under the EIA Ordinance and the Technical Memorandum on EIA Process. We will implement the measures recommended in the EIA report. We estimate the cost of implementing the environmental mitigation measures to be $20.0 million and will include this cost in the overall project estimate.
15. We will apply for an environmental permit before starting the construction of the local widening of Po Lam Road.
16. The proposed consultancy and site investigation do not require land acquisition.
17. We upgraded 556CL to Category A in June 1997 for carrying out the planning and engineering feasibility study. We plan to start the proposed detailed design and site investigation work in July 1999 for completion by 2003. A plan showing the proposed site boundary is at Enclosure 3. We envisage that the construction works, estimated to cost $1,892.4 million at December 1998 prices, will be undertaken in three contract packages, with the first contract commencing in 2002.
Enclosure 1 to PWSC(1999-2000)46
566CL - Development at Anderson Road
Breakdown of estimates for consultants' fees
|Consultants' staff costs||Estimated|
|(a) Review of the findings of feasibility study||Professional|
|(b) Detailed design||Professional|
|(c) Preparation of tender documents||Professional|
|(d) Supervision of site investigation||Professional|
|Total consultants' staff costs||21.16|
* MPS = Master Pay Scale
1. A multiplier factor of 2.4 is applied to the average MPS point for estimating the full staff costs including the consultant's overheads and profit, as the staff will be employed in the consultant's offices. (At 1.4.98, MPS pt. 40 = $62,780 p.m. and MPS pt. 16 = $21,010 p.m.).
2. The figures given above are based on estimates prepared by the Director of Civil Engineering. We will only know the actual man months and actual fees when we have selected the consultant through the usual competitive lump sum fee bid system.