on 16 June 1999
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 711 - HOUSING
Civil Engineering - Land development
564CL - Development near Choi Wan Road and Jordan Valley
Members are invited to recommend to Finance Committee-
- the upgrading of part of 564CL, entitled "Development near Choi Wan Road and Jordan Valley - consultants' fees and site investigation", to Category A at an estimated cost of $43.7 million in money-of-the-day prices; and
- the retention of the remainder of 564CL in Category B.
We need to carry out detailed design and site investigation for developing the site near Choi Wan Road and Jordan Valley in East Kowloon for residential development to meet growing demand for both public and private housing units.
2. The Director of Civil Engineering (DCE), with the support of the Secretary for Housing and the Secretary for Planning, Environment and Lands, proposes to upgrade part of 564CL to Category A at an estimated cost of $43.7 million in money-of-the-day (MOD) prices for engaging consultants to undertake detailed design and site investigation for the residential development near Choi Wan Road and Jordan Valley.
PROJECT SCOPE AND NATURE
3. The scope of 564CL comprises the design and construction of site formation, roads, drains and the upgrading of existing infrastructure to provide usable land of about 19 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 the site near Choi Wan Road and Jordan Valley as a potential site for boosting housing supply.
5. We completed the Planning and Engineering Feasibility Study for the Development near Choi Wan Road and Jordan Valley under item 557CL 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 19 March 1999. The proposed housing development comprises public and private housing developments which will accommodate a population of about 35,000 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 2001 to meet the target date of the first population intake by 2007.
6. We estimate the cost of the detailed design and site investigation to be $ 43.7 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||13.2||1.02625||13.5
|2000 - 2001||19.0||1.06217||20.2
|2001 - 2002||7.7||1.09934||8.5
|2002 - 2003||1.3||1.13782||1.5
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) in October 1998. Members had no objection to the project. We attended an Environmental Improvement Committee meeting of the KTPDB on 8 March 1999 to respond to Members questions on landfill gas from the Jordan Valley Landfill. We explained that according to the completed qualitative landfill gas assessment, the Jordan Valley Landfill did not pose a hazard to the development. We advised Members that we will monitor and implement appropriate mitigation works, if necessary, throughout the detailed design stage. We will further consult the KTPDB 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 from this development and other planned developments including the development at Anderson Road. 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 and 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. The project is a designated project under Schedule 3 of the Environmental Impact Assessment (EIA) Ordinance (Cap.499). On 20 April 1999, the EIA report for the project was approved under the EIA Ordinance, on condition that, at the detailed design stage, we would review the landfill gas hazard assessment and reassess the viability, the exact alignment and the impacts of a fully enclosed conveyor belt system for the off site transfer of construction waste. The EIA report concluded that the environmental impact of the project could be controlled to meet the criteria under the EIA Ordinance and the Technical Memorandum on EIA Process. We will implement the measures recommended in the approved EIA report. We estimate the cost of implementing the environmental mitigation measures to be $15.0 million and will include this cost in the overall project estimate.
13. The proposed consultancy and site investigation do not require any land acquisition.
14. We upgraded 557CL 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 in July 1999 for completion by 2002. A plan showing the proposed site boundary is at Enclosure 3. We envisage that the construction works, estimated to cost $1,135.4 million at December 1998 prices, will be undertaken in three contract packages, with the first contract commencing in 2001.
Enclosure 1 to PWSC(1999-2000)47
564CL - Development near Choi Wan Road and Jordan Valley
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||22.52|
*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 consultants' overheads and profit, as the staff will be employed in the consultants' 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 consultants through the usual competitive lump sum fee bid system.