For discussion FCR(95-96)87
on 8 December 1995
ITEM FOR FINANCE COMMITTEE
HEAD 22 - AGRICULTURE AND FISHERIES DEPARTMENT
Subhead 700 General other non-recurrent
Members are invited to approve a new commitment of $80.1 million for an artificial reefs project.
Land reclamation and the associated marine sand dredging and mud dumping activities have an adverse impact on the marine ecosystem and fisheries resources, if we do not implement appropriate compensatory measures.
2. The Director of Agriculture and Fisheries (DAF) proposes to implement an artificial reefs project (the project) to promote bio-diversity of the marine environment in the waters of Hong Kong and rehabilitate and enhance fisheries resources.
3. The waters of Hong Kong support a great diversity of fish and marine life important to inshore fisheries. In addition, many inshore areas are of special ecological importance to fisheries, as they are the spawning and nursery grounds of commercial species of fish and other marine life. Works associated with development projects would result in degradation of the marine environment and loss of fisheries habitat, if we do not implement appropriate compensatory measures. DAF proposes that an artificial reefs project should be implemented over the next five years to redress the balance. Artificial reefs encourage the growth and development of a great number and variety of marine organisms and provide food, shelter and protection for juvenile fish, thus improving their chances of survival to maturity. Experience overseas has shown that artificial reefs significantly enhance fisheries resources.
4. DAF proposes to implement the project between 1996-97 and 2000-01. It will involve the deployment of 148 artificial reefs constructed from 93 000 cubic metres (m3) of prefabricated concrete blocks, used car tyres and old boats in Hong Kong waters. The project will comprise -
- from 1996-97 to 1997-98, identifying suitable sites in marine parks for deployment of 30 artificial reefs and monitoring their condition and performance;
- in 1998-99, commissioning consultancy studies to identify suitable sites outside marine parks for deployment of artificial reefs and to formulate an implementation programme, including a fisheries resources management strategy; and
- from 1998-99 to 2000-01, deploying 118 artificial reefs around the coast of Hong Kong, outside marine parks, at sites of special importance to local fisheries, particularly the spawning and nursery grounds of commercial species.
5. The best and most cost-effective medium for an artificial reef is concrete because it can be cast to a specific shape and will last for at least 30 years. Reefs made from used tyres and old boats generally last for five to ten years, as they are bound together by, or made from, material that is subject to corrosion. They are also more susceptible to damage by typhoons. However, the project presents an opportunity to recycle large quantities of old tyres and boats that would otherwise pose a disposal problem.
FINANCIAL IMPLICATIONS
6. DAF estimates that implementing the project will involve a non-recurrent cost of $80.1 million, broken down as follows -
| $ million
|
|---|
| (a) Research and site investigation | 5.0
|
| (b) Construction and Deployment of artificial reefs | 60.8
|
| (i) 76 concrete reefs (57 000 m3) | 47.6 |
|
| (ii) 32 tyre reefs (16 000 m3) | 7.2 |
|
| (iii) 40 boat reefs (20 000 m3) | 6.0 |
|
| (c) Consultancy studies | 5.0
|
| (i) project design and management, including consultation, planning and report writing | 1.2 |
|
| (ii) field and laboratory work | 1.8 |
|
| (iii) data collection, analysis and interpretation | 2.0 |
|
| (d) Equipment, consumables, monitoring facilities and hired services | 5.5
|
| (e) Contingencies | 3.8
|
| Total | 80.1
|
7. As regards paragraph 6(a), the estimated cost is for carrying out initial research and site investigation to collect information on the ecology of the selected sites and engineering data on the seabed, including a detailed sediment profile, before the artificial reefs are deployed.
8. As regards paragraph 6(b), the estimated cost is for construction and deployment of artificial reef modules of different materials. The costs for concrete reefs include the casting and assembly of concrete blocks and hiring a crane-equipped barge to deploy them. The costs for tyre reefs include those necessary to collect and store tyres and to bind them together for deployment. The costs for boat reefs include those for removal of machinery and potential pollutants and for towing, sinking and securing them.
9. As regards paragraph 6(c), the estimated cost is for commissioning consultancy studies after initial deployment of artificial reefs, to review and evaluate the initial deployment programme, to identify suitable sites outside marine parks for deployment of artificial reefs and to formulate an implementation programme, including a fisheries resources management strategy.
10. As regards paragraph 6(d), the estimated cost is for equipment, consumables and various facilities needed for the monitoring and management of artificial reef sites. It includes expenses for a vehicle, a work boat and hire of services to carry out specialised laboratory and field work.
11. As regards paragraph 6(e), DAF proposes to provide for contingencies at 5% of the sum of items 6(a) to (d).
12. Details of the estimated costs for materials, construction and deployment of artificial reefs and for the consultancy studies required are at Enclosures 1 and 2, respectively.
13. The estimated cash flow of the non-recurrent costs of the project is as follows -
|
$ million
|
|
1996-97
|
9.7
|
|
1997-98
|
12.0
|
|
1998-99
|
16.0
|
|
1999-2000
|
16.0
|
|
2000-2001
|
26.4
|
|
Total
|
80.1 |
14. If Members approve the proposal, we shall include sufficient provision in the 1996-97 draft Estimates for the purpose.
15. DAF considers that he will require ten additional staff throughout its duration, at a total annual staff cost of $6.45 million to plan the project, evaluate its progress and supervise the private contractors and consultants involved. Details of the supernumerary posts required are given at Enclosure 3. Subject to Members approval, we will include the sufficient provision for this million over four and a half years, will be included in the 1996-97 and future draft Estimates.
16. The policy commitments published with the Governors 1995 Policy Address include a commitment to deploy artificial reefs at suitable points around our coasts over the next five years at a cost of some $100 million.
17. In 1994, Hong Kongs fishing fleet yielded an estimated 211 010 tonnes of fisheries produce valued at $2,327 million. Of this, 140 030 tonnes were landed in Hong Kong, accounting for 71% of fresh marine produce consumed in Hong Kong. DAF estimates that 10% of the total catch is derived from Hong Kong waters.
Economic Services Branch
November 1995
Enclosure 1 to FCR(95-96)87
| Year | Number
of reefs | Volume of
reefs (m3) | (a) Materials
(b) Construction
($ million) | Deployment
Cost
($ million) | Total Cost
($ million)
|
|---|
| (a) Concrete reefs |
| (a) | (b) |
|
| 1996-97 | 6 | 4,500 | 1.40 | 2.00 | 0.4 | 3.8
|
| 1997-98 | 6 | 4,500 | 1.40 | 2.00 | 0.4 | 3.8
|
| 1998-99 | 16 | 12,000 | 3.60 | 5.50 | 0.9 | 10.00
|
| 1999-2000 | 16 | 12,000 | 3.60 | 5.50 | 0.9 | 10.00
|
| 2000-2001 | 32 | 24,000 | 7.20 | 11.00 | 1.8 | 20.00
|
| Total | 76 | 57,000 | 17.20 | 26.00 | 4.4 | 47.60
|
| (b) Tyre reefs
|
| 1996-97 | 4 | 2,000 | 0.06 | 0.54 | 0.3 | 0.90
|
| 1997-98 | 4 | 2,000 | 0.06 | 0.54 | 0.3 | 0.90
|
| 1998-99 | 8 | 4,000 | 0.12 | 1.08 | 0.6 | 1.80
|
| 1999-2000 | 8 | 4,000 | 0.12 | 1.08 | 0.6 | 1.80
|
| 2000-2001 | 8 | 4,000 | 0.12 | 1.08 | 0.6 | 1.80
|
| Total | 32 | 16,000 | 0.48 | 4.32 | 2.4 | 7.20
|
| (c) Boat reefs
|
| 1996-97 | 5 | 2,500 | 0 | 0.25 | 0.5 | 0.75
|
| 1997-98 | 5 | 2,500 | 0 | 0.25 | 0.5 | 0.75
|
| 1998-99 | 10 | 5,000 | 0 | 0.50 | 1.0 | 1.50
|
| 1999-2000 | 10 | 5,000 | 0 | 0.50 | 1.0 | 1.50
|
| 2000-2001 | 10 | 5,000 | 0 | 0.50 | 1.0 | 1.50
|
| Total | 40 | 20,000 | 0 | 2.00 | 4.0 | 6.00
|
| Grand Total | 148 | 93,000 | 17.68 | 32.32 | 10.8 | 60.80
|
Enclosure 2 to FCR(95-96)87
|
Scope of work
|
Level
|
Estimated
number of
man-weeks
|
Estimated*
fee
($ million)
|
|---|
|
Project planning
and management
|
Chief Professional
Senior Professional
|
5
10
|
0.5
0.7
|
| Total
|
1.2
|
|
Field and laboratory
work
|
Senior Professional
Professional
Technical
|
4
15
20
|
0.3
0.8
0.7
|
|
Total
|
1.8
|
|
Data analysis and
interpretation
|
Chief Professional
Senior Professional
Professional
|
5
10
15
|
0.5
0.7
0.8
|
|
Total
|
2.0
|
|
Grand Total
|
5.0 |
Notes -
- The average estimated cost per chief professional is about equivalent to that of a Chief Engineer (annual staff cost = $1.83 million).
- The average estimated cost per senior professional is about equivalent to that of a Senior Fisheries Officer (annual staff cost = $1.37 million).
- The average estimated cost per professional is about equivalent to that of a Fisheries Officer (annual staff cost = $0.96 million).
- The average estimated cost per technician is about equivalent to that of a Fisheries Technical Officer I (annual staff cost = $0.6 million).
- The above rates are used for estimate purposes. The actual cost of the consultancy will be determined on the basis of a tender exercise.
* Estimated consultancy fees = Annual staff cost of number and level of staff (staff input) x number of man-weeks (time input) x 5.25% (standard weekly time-charge rate per staff member).
Enclosure 3 to FCR(95-96)87
|
Rank
|
Number
|
Total annual
staff cost
($ million)
|
|---|
|
Senior Fisheries Officer
|
1
|
1.37
|
|
Fisheries Officer
|
2
|
1.93
|
|
Senior Fisheries Supervisor
|
1
|
0.70
|
|
Fisheries Supervisor I/
Fisheries Technical Officer I
|
2
|
1.21
|
|
Fisheries Supervisor II/
Fisheries Technical Officer II
|
3
|
1.01
|
|
Field Assistant
|
1
|
0.23
|
|
Total
|
10
|
6.45 |
All staff will be required for six months in 1996-97 and the following four full years up to and including 2000-01.
Last Updated on 2 December 1998
