For discussion FCR(96-97)13
on 24 May 1996

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Medical Subventions
New Subhead “Upgrading medical gas pipeline systems in public hospitals”

Members are invited to approve a commitment of $45.72 million in money-of-the-day prices for carrying out upgrading works of medical gas pipeline systems in 29 public hospitals.



PROBLEM

The medical gas pipeline systems in some public hospitals do not meet the current international standards required of such installations.

PROPOSAL

2. The Secretary for Health and Welfare proposes to upgrade the medical gas pipeline systems in 29 public hospitals at a total non-recurrent cost of $45.72 million in money-of-the-day (MOD) prices.

Project scope and nature

3. The scope of works includes -

  1. installation of gas control valves, duplicate safety relief valves and alarm control panels in 29 hospitals;
  2. replacement of the gas terminal units with enhanced and updated models in seven hospitals;
  3. replacement of the anaesthetic gas scavenging systems with new systems offering enhanced extraction rates in 14 hospitals; and
  4. upgrading of the gas manifold control systems to the automatic changeover type in ten hospitals.

The upgrading works are outlined at the Enclosure.

JUSTIFICATION

4. The medical gas pipeline systems in public hospitals include the following major components -

  1. medical oxygen system;
  2. medical nitrous oxide system;
  3. medical compressed air system;
  4. medical vacuum system; and
  5. anaesthetic gas scavenging system (AGSS).

5. The Director of Electrical and Mechanical Services (DEMS) has recently completed a detailed assessment of the medical gas pipeline systems in all public hospitals and recommended upgrading works in 29 hospitals. These systems were built in accordance with the safety standards stipulated in the UK Health Technical Memorandum (UKHTM) issued by the UK Department of Health in 1972 or 1977. They do not meet the UKHTM standards issued in 1994, which are recognised internationally as one of the prevailing safety standards.

6. The upgrading works will bring about the following improvements in the interest of better patient care -

  1. the gas control valves for individual wards can minimise the interruption to hospital operation when routine maintenance on the medical gas pipeline system is carried out;
  2. installation of the duplicate safety pressure relief valves on the main distribution pipes and main plants will protect the pipeline from being over-pressurised if one of the safety pressure relief valves becomes defective or is being removed for services;
  3. alarm control panels in individual critical areas will provide a more sensitive detecting system so that the pipeline supply conditions at individual areas can be monitored and medical staff will be duly alerted when abnormal supply conditions occurred;
  4. the new gas terminal units are equipped with self-sealing check valve feature which can allow repair of an individual unit being carried out without causing interruptions to the medical gas supplies of other units within the same zone;
  5. the new AGSS of enhanced extraction rate can improve the efficiency of exhausting the residual anaesthetic gas in the operating theatres; and
  6. the upgraded gas manifold control systems of automatic changeover type can secure fast hook up of back-up gas supply and have more delicate monitoring on the status/control of medical gas supply to the whole hospital.

FINANCIAL IMPLICATIONS

7. DEMS estimates that the upgrading works will cost $45.72 million in MOD prices, made up as follows -


$ million

(a) Upgrading of medical gas pipeline systems

equipment14.38
installation4.80
testing4.80


23.98

(b) Building works

6.54

(c) Building services

4.71

(d) Contingency

2.92

Sub-total
(at December 1995 prices)

38.15

(e) Inflation allowance

7.57

Total
(in MOD prices)

45.72

8. The estimated cashflow is as follows -

Year $ million
(December 1995)
Price adjustment factor $ million
(MOD)

1996-97

8.72

1.07500

9.38

1997-98

16.35

1.18250

19.33

1998-99

13.08

1.30075

17.01

Total

38.15


45.72

9. DEMS derives the MOD estimate on the basis of the Government’s forecasts of trend labour and construction prices over the period between 1996 and 1999. He will tender the works under fixed-price lump-sum contracts as the project scope can be clearly defined in advance, leaving little room for uncertainty.

10. The upgrading works will commence in July 1996 for completion in March 1999. No additional annually recurrent expenditure will be involved.

ENVIRONMENTAL IMPLICATIONS

11. DEMS will include in the contracts requirements for the contractors to control dust, noise and site run-off nuisance through implementation of the necessary mitigation measures.

BACKGROUND INFORMATION

12. The safety standards on medical gas pipeline systems stipulated in the UKHTM have been updated significantly in 1994.

Health and Welfare Branch
May 1996


Enclosure to FCR(96-97)13

Upgrading medical gas pipeline systems in public hospitals


Upgrading items
Hospital Safety Control Valves Alarm Control Panels Gas Terminal Units Anaesthetic Gas Scavenging Systems Gas
Manifold Control Systems
Total cost
(December 1995 prices) $ million

Caritas Medical Centre

X

X

X



1.47

Cheshire Home, Shatin

X

X




0.09

Duchess of Kent Children’s Hospital

X

X

X


X

1.64

Fung Yiu King Hospital

X

X




0.16

Grantham Hospital

X

X

X

X

X

11.45

Hong Kong Buddhist Hospital

X

X

X

X

X

2.13

Hong Kong Eye Hospital

X

X


X


0.19

Kowloon Hospital

X



X


0.82

Kwai Chung Hospital

X

X


X

2.24

MacLehose Medical Rehabilitation Centre

X

X



X

0.21

Nam Long Hospital

X

X




0.39

Our Lady of Maryknoll Hospital

X

X



X

0.93

Pamela Youde Nethersole Eastern Hospital

X

X




0.74

Pok Oi Hospital

X

X



X

1.04

Prince of Wales Hospital

X

X

X

X


2.45

Princess Margaret Hospital

X

X

X

X

X

0.82

Queen Elizabeth Hospital

X

X

X

X


0.98

Queen Mary Hospital

X

X


X


0.82

Ruttonjee Hospital

X

X


X


0.48

Shatin Hospital

X

X




0.76

Siu Lam Hospital

X

X




0.16

Tang Shiu Kin Hospital

X

X


X


0.84

Tsan Yuk Hospital

X

X


X


0.82

Tuen Mun Hospital

X

X


X


0.74

Tung Wah Hospital

X

X


X

X

0.93

Tung Wah Eastern Hospital

X

X


X

X

1.00

United Christian Hospital

X

X




0.15

Wong Tai Sin Hospital

X

X




0.37

Yan Chai Hospital

X

X




0.41

Contingency






2.92

Total






38.15


Last Updated on 2 December 1998