For discussion FCR(95-96)122
on 9 February 1996
ITEM FOR FINANCE COMMITTEE
LOTTERIES FUND
HEAD 341 - NON-RECURRENT GRANTS
Subhead 182 Nursing homes
Members are invited to approve a grant of $128.96 million in money-of-the-day prices to the Pok Oi Hospital Board for constructing, furnishing and equipping a nursing home for the elderly.
There is a need for more nursing homes for the elderly to fill a service gap between care-and-attention homes and infirmaries.
2. The Director of Health (DH) proposes to grant $128.96 million in money-of-the-day (MOD) prices from the Lotteries Fund to the Pok Oi Hospital Board (POHB) to construct, furnish and equip a nursing home in Tuen Mun.
3. The proposed home will be a seven-storey building with a gross floor area of 6 800 square metres located at a site in Tuen Mun. It will provide 200 residential care places for the elderly in need of regular medical, nursing and personal care. A site plan is at Enclosure 1.
4. There is a considerable number of elderly people who, because of their poor health condition, cannot be adequately cared for in care-and-attention homes but do not require the intensive medical and nursing care provided in infirmaries. We are introducing a new nursing home service to fill this gap. These nursing homes will take in clients from care-and-attention homes who require a higher level of nursing care, and clients from infirmaries who require less intensive medical and nursing care. The target clients served by nursing homes are set out at Enclosure 2.
5. We have pledged to construct six nursing homes to provide a total of 1 400 beds by 1997. Members have so far approved five nursing home projects (providing 1 200 beds) financed by the Lotteries Fund. Details of these projects are set out at Enclosure 3. The project under consideration is the sixth nursing home which will provide the remaining 200 beds.
6. The Social Welfare Advisory Committee supports the use of the Lotteries Fund to finance the construction of nursing homes.
7. On the basis of the design proposed by POHB (which will operate the proposed home) and accepted by the Director of Architectural Services and DH, the estimated capital cost of the project is $128.96 million in MOD prices, made up as follows -
|
$ million
|
---|
(a) Building works
|
46.87
|
(b) Building services
|
33.33
|
(c) Drainage and external works
|
3.97
|
(d) Professional fees
|
10.58
|
(e) Contingencies
|
4.00
|
(f) Furniture and equipment
|
13.00
|
Sub-total (at December 1995 prices)
|
111.75
|
(g) Inflation allowance
|
17.21
|
Total cost in MOD prices
|
128.96
|
8. The estimated cashflow is as follows -
Year
|
$ million
(December 1995)
|
Price
adjustment
factor
|
$ million
(MOD)
|
---|
1995-96
|
3.30
|
1.00000
|
3.30
|
1996-97
|
27.02
|
1.07500
|
29.05
|
1997-98
|
78.77
|
1.18250
|
93.15
|
1998-99
|
2.66
|
1.30075
|
3.46
|
Total
|
111.75
|
|
128.96 |
9. We derive the MOD estimate on the basis of the Governments forecasts of trend labour and construction prices over the period 1996 to 1999. We shall tender the piling and superstructure works under two fixed-price lump-sum contracts. We adopt a lump-sum approach as we can define clearly the scope of the works in advance, leaving little room for uncertainty.
10. Based on the current programme of work, the nursing home will be completed by end-1997 and will come into operation in the first quarter of 1998. The estimated annual operating cost (excluding rates) of the nursing home is $26.097 million at 1995-96 price level, made up as follows -
|
$ million
|
---|
Personal emoluments
|
21.601
|
Other charges
|
4.496
|
Total
|
26.097 |
DH will subvent the operation of the nursing home net of the income from fees.
11. The Director of Environmental Protection conducted an environmental review in July 1995 and concluded that, with the provision of central air-conditioning to the nursing home, traffic noise from the nearby roads will not become a nuisance. For short-term construction impact, POHB will require the contractor to implement standard pollution control measures to control the dust, noise and run-off nuisance during construction.
12. The District Lands Officer (Tuen Mun) approved the private treaty grant to POHB for the proposed nursing home on 27 July 1995.
13. The project has the support of the Tuen Mun District Board.
14. Under section 6(4) of the Government Lotteries Ordinance, the Financial Secretary has the authority to approve payments from the Lotteries Fund to finance the development of welfare services. However, as a matter of practice, he would seek Members approval for any proposal that has recurrent financial implications exceeding $8 million a year. The proposal under consideration falls into this category.
Health and Welfare Branch
January 1996
Enclosure 2 to FCR(95-96)122
To qualify for nursing home care, applicants should be elderly persons -
- with a medical condition(s) which is stabilised but which has nevertheless caused functional disability and loss of personal care ability;
- whose medical conditions require regular medical and nursing care; and
- who do not have any uncontrollable psychiatric behaviour, such as a tendency to violence, self-destruction/self-injury or disruptive behaviour.
Priority will be accorded to those with low income, lack of family support and/or poor housing conditions.
Enclosure 3 to FCR(95-96)122
Date of approval
by FC
|
Location of the
nursing home
|
Capacity
(beds)
|
Target
completion date
|
---|
3 March 1995
|
Sheung Shui (Po Ping Road)
|
200
|
Second quarter 1997
|
14 July 1995
|
Wong Tai Sin (between Po Kong Village Road and Choi Hung Road)
|
250
|
Fourth quarter 1997
|
14 July 1995
|
Tseung Kwan O (Po Lam Road)
|
250
|
Fourth quarter 1997
|
28 July 1995
|
Kowloon Bay (Kai Yan Street)
|
200
|
Second quarter 1998
|
1 December 1995
|
Tsuen Wan (Yan Chai Street)
|
300
|
Fourth quarter 1997
|
Total
|
1 200
|
|
Last Updated on 2 December 1998