For discussion
FCR(96-97)116
on 21 March 1997

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT

Transport Department

New Subhead "Upgrading of power supply system in the Lion Rock Tunnel"

Members are invited to approve a commitment of $12.6 million for upgrading the power supply system in the Lion Rock Tunnel.

---

PROBLEM
PROPOSAL
JUSTIFICATION
FINANCIAL IMPLICATIONS

---

PROBLEM

The loading of the existing power supply system for the Lion Rock Tunnel has reached its maximum limit and cannot provide additional supply to meet future needs.

PROPOSAL

2. We propose to upgrade the system at an estimated cost of $12.6 million in order to meet future needs for power supply in the tunnel.

JUSTIFICATION

3. We installed the existing power supply system for the southbound tube and the northbound tube of the Lion Rock Tunnel in 1967 and l978 respectively. With the replacement of the air-conditioning system for the Administration Building in 1994 and the upgrading of the tunnel ventilation system in late 1995, the loading of the power supply system has reached its limit. To avoid overloading and power supply failure, the Electrical and Mechanical Services Trading Fund (EMSTF) has advised that it is necessary initially to upgrade the system and eventually to replace it in order to maintain its stability and cater for future needs.

4. The existing power system will reach the end of its serviceable life in about three years’ time. However, before replacement can take place, we need to first upgrade the capacity. This is because, without the upgrading, we will have to close one tube in the tunnel and implement two-way traffic in the other during the replacement work. Such special traffic arrangements will be necessary as removal of any of the existing transformers, which have already reached capacity, during the replacement process will result in inadequate power supply for the lighting of both tubes of the tunnel. The reduction of the tunnel to one tube will cause severe traffic congestion in the vicinity of the tunnel and will be unacceptable.

5. We intend therefore to upgrade the power supply system first to increase its capacity by 33.3% to cater for future needs. The additional capacity will enable us to keep both tubes of the tunnel open at all times when replacement of the existing transformers takes place in three years’ time. The upgrading work will increase the overall stability of the power system and also divert the existing lighting load to the new transformers, thus reducing the risk of power outage to the tunnel lights due to, say, the switching on of large power fans during emergencies.

6. Subject to approval we plan to commence the project in July 1997 for completion in September 1999.

FINANCIAL IMPLICATIONS

7. We estimate the capital cost of the project to be $12.6 million, made up as follows -

8. We shall award the contract on a lump-sum fixed price basis. EMSTF will provide comprehensive engineering consultancy services, including feasibility study, definition of requirements, preparation of project programme and estimate, design, tendering, installation, testing and commissioning, and monitoring equipment performance and arranging rectification of defects during the defect liability period.

9. Subject to approval, we shall phase expenditure as follows -

10. We have included sufficient provision in the 1997-98 draft Estimates for the project. There will be no additional recurrent expenditure as the contractor operating and managing the tunnel will meet the operation and maintenance costs.

Transport Branch
March 1997

---

Enclosure to FCR(96-97)116

Project Management Charges under
Electrical and Mechanical Services Trading Fund
for Power Upgrading in Lion Rock Tunnel

% of charges on project value		Project estimate for E & M work ($ million)	Charges ($ million)
First $1 million	20	1	0.2
Next $4 million	15	4	0.6
Next $5 million	10	3	0.3
Remainder	8	- _____	- _____
Total		8 _____	1.1 _____

---