For discussion
PWSC(98-99)31

on 21 October 1998

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
New Territories North Development
Civil Engineering - Land development
476CL - Formation and servicing in area 36, Fanling

    Members are invited to recommend to Finance Committee -

  1. the upgrading of part of 476CL, entitled "Formation and servicing of area 36, Fanling, phase 1", to Category A at an estimated cost of $89.7 million in money-of-the-day prices; and
  2. the retention of the remainder of 476CL, retitled "Formation and servicing of area 36, Fanling - remaining works", in Category B.

PROBLEM

We need to carry out site formation works, construct drains and road reserves and divert a section of the Shek Sheung River in area 36 of Fanling to provide serviced land for housing developments in the area.

PROPOSAL

2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 476CL to Category A at an estimated cost of $89.7 million in money-of-the-day (MOD) prices to provide formed land, drains and road reserves for public rental and Home Ownership Scheme (HOS) housing development in area 36 of Fanling, and to construct a new river channel for diversion of a section of the Shek Sheung River.

PROJECT SCOPE AND NATURE

3. The full scope of 476CL comprises -

  1. formation of about 14 hectares of land in area 36 of Fanling for public rental, HOS housing development, local open space, Government/institution/community facilities (GIC) and village expansion;

  2. construction of a new river channel (about 740 metres in length) for diversion of a section of the Shek Sheung River;

  3. provision of two pedestrian crossings over the river channel described at (b) above;

  4. construction of local distributor roads, drainage and sewerage works;

  5. improvement works to existing road junctions in Sheung Shui/Fanling Area;

  6. widening of four sections of Fan Kam Road, Po Shek Wu Road, Choi Yuen Road and So Kwun Po Road;

  7. landscaping works; and

  8. an environmental monitoring and audit programme.

4. The part of the project we now propose to upgrade to Category A comprises -

  1. formation of about 9.8 hectares of land for public rental and HOS housing development and road reserves in area 36 of Fanling (part of item (a) of paragraph 3);

  2. construction of a new river channel (about 740 metres in length) for diversion of a section of the Shek Sheung River (item (b) of paragraph 3);

  3. provision of two pedestrian crossings over the proposed new river channel (item (c) of paragraph 3);

  4. construction of associated drainage works and landscaping works (part of items (d) and (g) of paragraph 3); and

  5. implementation of an environmental monitoring and audit programme (item (h) of paragraph 3).

JUSTIFICATION

5. Fanling/Sheung Shui Area 36 is earmarked mainly for public and private housing development, GIC uses and local open space. The Director of Housing plans to commence the construction of the public rental housing projects in phases from November 1999 for completion by mid 2003 to provide about 6 100 flats for 20 000 persons. To ensure the timely supply of formed land with adequate infrastructural facilities for the proposed housing developments, we need to start the site formation and associated drainage works in February 1999 for completion in phases from October 1999 to July 2001.

6. Prior to carrying out the site formation works, we need to divert a section of the Shek Sheung River which passes through the housing site. A drainage impact assessment completed in March 1998 recommended constructing a river channel along the southern and eastern boundaries of the site to divert the River. The proposed diversion plan will keep the ecological impact of the diversion works to a mimimum. We will also carry out landscaping works on and along the constructed river channel. To facilitate pedestrain movement and improve access to the site, we plan to provide two pedestrain crossings over the constructed river channel.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $89.7 million in MOD prices (see paragraph 8 below), made up as follows -



$ million






(a)

Site formation

20.0






(b)

River channel and associated pedestrian crossings

32.0






(c)

Stormwater drains

10.0






(d)

Landscaping works

2.0






(e)

Environmental monitoring and audit programme

1.0






(f)

Contingencies

6.0
______







Sub-total

71.0
______

(at December
1997 prices)

(g)

Inflation allowance

18.7
_______







Total

89.7
______

(in MOD prices)

The Director of Civil Engineering will supervise the project using in-house staff resources.

8. Subject to approval, we will phase the expenditure as follows -

Year

$ million
(Dec 1997)

Price
adjustment
factor

$ million
(MOD)





1999 -2000

20.0

1.14878

23.0

2000 - 2001

25.0

1.24642

31.2

2001 - 2002

23.0

1.35237

31.1

2002 - 2003

3.0
________

1.46732

4.4
________


71.0
________


89.7
________

9. We have derived the MOD estimate on the basis of the Government's forecast of trend labour and construction prices for the period 1999 to 2003. We will tender the proposed works under a standard remeasurement contract because the works involve extensive earthworks, the quantities of which may vary according to the actual ground conditions. The contract will provide for inflation adjustments as the contract period will exceed 21 months.

10. We estimate the annually recurrent expenditure of the project to be $0.903 million.

PUBLIC CONSULTATION

11. We consulted the North Provisional District Board on the proposed works on 11 December 1997. Members supported the proposal.

ENVIRONMENTAL IMPLICATIONS

12. We completed an Environmental Impact Assessment (EIA) for the project in December 1997. The EIA concluded that, with the implementation of mitigation measures, the environmental impacts arising from the project would be within established standards and guidelines. The mitigation measures include the insertion of relevant clauses in the works contract to control air, noise, site runoff and wastewater impacts during construction, the use of ecologically sensitive design for the constructed river channel and the restoration of channel-side vegetation by compensatory planting. The Advisory Council on the Environment endorsed the EIA report in February 1998.

13. We will implement all the mitigation measures recommended in the EIA report. We have included in the project estimates the total cost of the mitigation measures including the landscaping work of the new river channel and the EM&A programme.

LAND ACQUISITION

14. About 9.9 hectares of agricultural land will need to be resumed for the project. The land acquisition and clearance will affect 347 households involving 1 182 persons and 815 structures. The Director of Housing will offer eligible clearees accommodation in public housing. We will charge the cost of land acquisition and clearance, estimated at $560.3 million, to Head 701 - Land Acquisition.

BACKGROUND INFORMATION

15. We upgraded 476CL to Category B in September 1996.

16. The Director of Civil Engineering has substantially completed the detailed design and working drawings for the proposed works using in-house staff. We plan to start the proposed works in February 1999 for completion in phases from October 1999 to July 2001 to tie in with the housing development programme.

17. We plan to start the remaining works under 476CL in late 1999 for completion in stages by 2002.

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Planning, Environment and Lands Bureau
October 1998