For discussion FCR(95-96)65
on 3 November 1995
ITEM FOR FINANCE COMMITTEE
HEAD 194 - WATER SUPPLIES DEPARTMENT
Subhead 121 Contract maintenance
Members are invited to approve supplementary provision of $99,000,000.
The approved provision of $231,708,000 under Subhead 121 for maintenance and emergency repairs of waterworks facilities is insufficient to meet requirements in the current financial year.
2. We propose that supplementary provision of $99,000,000 be approved to meet increased expenditure on emergency repairs of waterworks facilities.
3. Hong Kong experienced another very wet summer this year, with the amount of rain falling in August being the greatest (1 090 millimetres against a mean of 391 millimetres) since record-keeping began. The heavy rain and typhoons caused many incidents of damage to waterworks installations, catchment, related access roads and adjoining slopes. To protect these facilities from further damage, the Director of Water Supplies (DWS) has called upon his contractors to carry out emergency remedial works. There were 78 such cases at a cost of $29,600,000. A summary of these incidents and the cost of repairs is at Enclosure 1. The required expenditure has far exceeded the provision of $7,000,000 originally earmarked in the 1995-96 approved provision for emergency repairs resulting from rainstorm and typhoon damage.
4. In addition, we have more cases of main bursts and leaks than expected this year. Compared with the same period last year, the number of main bursts from 1 April to 31 August has increased from 408 to 524 and the number of main leaks from 1 460 to 1 712. A summary of this year92's main bursts and leaks is at Enclosure 2. We consider that the general ageing of water mains coupled with increased traffic load above these underground mains are the major causes for their failure. Subterranean soil erosion along the water main routes due to heavy rains is also a contributing factor. To minimise disruption to the public and to reduce loss of water, DWS has asked his contractors to carry out immediate repairs. As a result, up to 31 August 1995, the total cost of emergency repairs arising from main bursts and leaks is $70,700,000. This five-month expenditure represents almost 90% of the total amount of $79,000,000 we spent on repairing main bursts and leaks in the whole of 1994-95.
5. Many of the main burst cases caused serious damage. We have to carry out substantial and costly reinstatement works to the affected carriageways and pavements particularly since many carriageways are now made of thick concrete slabs instead of flexible bituminous surface as in the past. The volume of repairs work aside, the increased expenditure is also due to higher contract costs in meeting the present required standards of reinstatement works and in complying with road traffic regulations and site safety standards. Where the emergency repairs necessitate night works, this also involves higher labour costs.
6. The increase in the two categories of emergency repair works is due to circumstances outside DWSs control. These works are essential in protecting the integrity of the water supply systems in order to maintain satisfactory water supply to the public. DWS has carefully re-examined his work programme and commitments to see whether the increased expenditure arising from emergency repairs could be met from within the approved provision for contract maintenance in 1995-96. He concludes that there is limited scope for rescheduling normal maintenance work without jeopardising the services provided by the Department or leading to even higher maintenance or repair costs in future years.
7. Based on the works completed and those to be carried out in the next few months, he estimates that the total expenditure on contract maintenance for 1995-96 will exceed the approved provision of $231,708,000 by $99,000,000, calculated as follows -
|
|
|
$000
|
|
|
Actual expenditure from 1 April to 30 September 1995
|
121,541
|
|
Add
Add
|
Amount committed as at 30 September 1995
Estimated commitment up to 31 March 1996
|
86,233
122,934
|
|
|
Estimated total expenditure for 1995-96
|
330,708
|
|
Less
|
Approved provision for 1995-96
|
231,708
|
|
|
Supplementary provision required
|
99,000 |
8. If Members approve the proposal, we shall offset the supplementary provision required by deleting the same amount under Head 106 Miscellaneous Services Subhead 251 Additional commitments.
9. Provision under Subhead 121 Contract maintenance is for normal maintenance of reservoirs, catchwaters, access roads, waterworks buildings, treatment works, pumping stations, service reservoirs, water tunnels and mains and for emergency repairs of main bursts, main leaks, typhoon and rainstorm damage. Contractors carry out normal maintenance work on a scheduled need-for-repair basis as well as for unforeseen emergency repairs. Water Supplies Department staff regularly inspect catchwaters, reservoirs and access roads maintained by the Department to ensure that these facilities are in good order. On occurrence of a main burst, main leak, typhoon or rainstorm, the Department will carry out special inspections to assess the extent of emergency repairs to the damaged sites and instruct its contractors to carry out the works. We incurred a total of $79,000,000 and $107,000,000 on such emergency works in 1993-94 and 1994-95 respectively.
10. To improve cost-effectiveness in maintenance of waterworks facilities and to alleviate sudden increases in expenditure on repairs, the Department is planning to draw up a long term improvement and replacement programme for existing installations and to develop an integrated asset management strategy for the water supply network. This will help the Department to identify priorities more efficiently and to reduce the need for emergency repairs.
Works Branch
October 1995
Rainstorm and Typhoon Damage in 1995
(up to 31 August 1995)
|
Number of
cases
|
Cost of repairs
($'000)
|
|
(1) Damage to catchwaters and reservoirs due to earth slips, fallen rocks and trees including damage to uphill slopes of catchwaters and reservoirs
|
28
|
14,620
|
|
(2) Damage to waterworks access roads and footpaths due to earth slips, fallen rocks and trees including damage to adjoining slopes
|
18
|
8,250
|
|
(3) Damage to waterworks buildings, sites and facilities
|
32
|
6,713
|
|
Total
|
78
|
29,583
|
Enclosure 2 to FCR(95-96)65
Statistics of main bursts and leaks repaired by term contractors during the period 1 April 1995 to 31 August 1995 -
|
Region
|
Type of
damage
|
Number of
cases
|
Cost of
repairs
($'000)
|
|
Hong Kong and Islands
|
Serious main bursts *
|
8
|
1,415
|
|
Other main bursts
|
95
| )
|
|
|
Main leaks
|
671
|
)10,000
|
|
Mainland Southeast
|
Serious main bursts *
|
19
|
6,628
|
|
|
Other main bursts
|
55
|
)
|
|
|
Main leaks
|
217
|
)3,840
|
|
|
|
|
|
|
Mainland Southwest
|
Serious main bursts
|
54
|
15,152
|
|
|
Other main bursts
|
137
|
)
|
|
|
Main leaks
|
202
|
)13,359
|
|
|
|
|
|
|
Mainland Northeast
|
Serious main bursts *
|
8
|
2,279
|
|
|
Other main bursts
|
52
|
)
|
|
|
Main leaks
|
132
|
)2,727
|
|
|
|
|
|
|
Mainland Northwest
|
Serious main bursts
|
15
|
3,804
|
|
|
Other main bursts
|
81
|
)
|
|
|
Main leaks
|
490
|
)11,446
|
|
|
|
|
|
|
Total
|
|
2 236
|
70,650 |
* Serious main burst cases with repair cost greater than $100,000 for each case.
Last Updated on 2 December 1998
