For discussion PWSC(95-96)87
on 7 February 1996
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
CAPITAL WORKS RESERVE FUND
HEAD 702 - PORT AND AIRPORT DEVELOPMENT
Block allocations
Members are invited to recommend to the Finance Committee to approve the allocation of $28.92 million for block allocations under Head 702 for 1996-97.
Various existing block allocations under Head 702 need funding in 1996-97 for existing and new projects to proceed on schedule.
2. We propose a total allocation of $28.92 million for the block allocations 2001AX to 2005AX under Head 702 for 1996-97
JUSTIFICATION
3. Block allocation subheads under CWRF heads of expenditure dealing with the Public Works Programme provide sources of funds for a wide variety of minor projects. The Finance Committee approves expenditure under block allocations on the basis of the forecast of total expenditure required for the next financial year, not the total estimated cost of the works to be carried out, the implementation of which can extend beyond the financial year in question.
4. Generally expenditure under CWRF block allocations is limited to items of work costing less than $15 million each (public works projects costing over $15 million each have to be approved on an individual basis by Finance Committee). The block allocations under Head 702 are somewhat unusual in that the Finance Committee has delegated to the PWSC the power to approve expenditure under the block allocations on any consultancies/investigations costing more than $15 million each1.
5. The block allocations under Head 702 provide for expenditure on consultants' fees and charges for feasibility investigations and designs for Port and Airport Development (PADS) related projects. It is necessary for Finance Committee to approve funds under each of the block allocations under Head 702 in order to enable the Government to undertake various works in the next financial year, including meeting payments carried forward from the present and earlier financial years.
6. The proposed total allocation for Head 702 block allocations for 1996-97 shows a significant decrease of about 58??% over the aggregate allocation for the existing subheads in 1995-96. We have drawn up the allocation proposed for 1996-97 on the basis of expenditure patterns, existing commitments and projects expected to be undertaken in the coming financial year. Enclosure 1 sets out the key expenditure items in 1996-97. The decrease is not unexpected as most of the PADS projects have passed beyond the feasibility stage. We require the bulk of expenditure in 1996-97 to cover residual outstanding payments on projects started in earlier years.
7. The total proposed allocation for the block allocations for 1996-97 under Head 702 is $28.92 million. There are no additional annually recurrent expenditure implications arising from the proposals.
8. The CWRF finances eleven different heads of expenditure covering the Public Works Programme, the acquisition of land, capital subventions and major systems and equipment, and computerisation. The ambits of the block allocations for Head 702 are set out in Enclosure 2. We allow a certain level of over-commitment on the sums approved by Finance Committee in order to cater for expenditure on items which can only start towards the end of the financial year, and where part of the expenditure must carry forward to the next financial year, or for items where we forecast the full amount of expenditure will be spread over several financial years.
9. For Members' information, total expenditure on block allocations under Head 702, since 1992-93, is shown below -
Total expenditure on Head 702 block allocations
|
Financial year
|
Original Estimate
$'000
|
Actual Outturn
$'000
|
|---|
|
1992-93
|
204,200
|
180,804
|
|
1993-94
|
245,700
|
123,805
|
|
1994-95
|
73,800
|
39,997
|
|
1995-96
|
68,670
|
# 23,058 |
# Forecast outturn for 1995-96
1 -- For items costing less than $15 million each, the Finance Committee has delegated to the Secretary for the Treasury the power to approve expenditure.
Enclosure 1 to PWSC(95-96)87
|
Project Description
|
Estimate
1996-97
$'000
|
|---|
|
Port and Airport Development Strategy - upgrading of water quality and hydraulic mathematical models
|
6,300
|
|
Geotechnical studies including terrain and geological mapping of North Lantau
|
593
|
|
Lantau Fixed Crossing - consultants' fees for design and preparation of contract documents for contracts 3, 4 and 5
|
660
|
|
Reclamation and servicing of Tuen Mun area 38 for special industries - consultants' fees and site investigation
|
6,000
|
|
Feasibility study for Tseung Kwan O area 131, for development into a mid-stream site
|
8,000
|
|
Water transfer, treatment and supply to North Lantau, consultants' fees and investigations for stage I works
|
3,790 |
Enclosure 2 to PWSC(95-96)87
Block allocation
Subhead
|
Title
|
Ambit
|
|---|
|
2001AX
|
Consultants fees for feasibility investigations and design and major in-house investigations for PADS related civil engineering project
|
For consultants fees and charges for feasibility investigations and design for PADS related civil engineering projects.
|
|
2002AX
|
Consultants fees for feasibility investigantions and design and major in-house investigations for PADS related transport projects
|
For consultants fees and charges for feasibility investigations and design for PADS related transport projects.
|
|
2003AX
|
Consultants fees for feasibility investigations and design and major in-house investigations for PADS related territorial development projects
|
For consultants fees and charges for feasibility investigations and design for PADS related territorial development projects.
|
|
2005AX
|
Consultants fees for feasibility investigations and design and major in-house investigations for PADS related waterworks projects
|
For consultants fees and charges for feasibility investigations and design for PADS related waterworks projects |
Last Updated on 8 December 1998
