For discussion
on 20 January 1999

PWSC(98-99)61

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Support - Border facilities (other than road works)
6GB - Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing

Members are invited to recommend to Finance Committee -

1. the upgrading of part of 6GB entitled 'Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing - phase 1 works' to Category A at an estimated cost of $292.5 million in money-of-the-day prices; and

2. the retention of the remainder of 6GB, retitled 'Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing - remaining works' in Category B.

PROBLEM

The existing kiosks and facilities at the Lok Ma Chau boundary crossing cannot cope with the anticipated increase in traffic and passenger flow between Hong Kong and Huanggang, Shenzhen.

PROPOSAL

2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Transport (S for T), proposes to upgrade part of 6GB to Category A at an estimated cost of $292.5 million in money-of-the-day (MOD) prices to carry out the phase 1 expansion works to provide additional kiosks and supporting facilities at the Lok Ma Chau boundary crossing.

PROJECT SCOPE AND NATURE

3. The expansion works at the Lok Ma Chau boundary crossing under 6GB will be carried out in two phases as follows -

1. Phase 1 - addition of kiosks and associated works
   1. the construction of ten additional pairs of kiosks in both directions of traffic (five Hong Kong bound and five Mainland bound) and three pairs of kiosks in the inbound direction for the re-provisioning of existing kiosks for Customs and Excise Department (C&ED) and Immigration Department (ImmD), canopy structures and traffic aids;

   2. the civil infrastructural works including site formation and associated geotechnical works to provide additional hardstanding area to accommodate the additional kiosks mentioned in paragraph 3(a)(i) above and canopy structures, roadworks, drainage, sewerage, lighting, traffic aids and utilities works; and

   3. provision of computer systems for the cross boundary movement of people and vehicles related to the additional kiosks which will include additional hardware and software for the system for C&ED and ImmD.

2. Phase 2 - remaining works
   1. the extension of the existing main building to provide additional office areas, C&ED and ImmD counters, passenger queuing areas and public amenities to cater for an average of 25 000 passengers per day, together with associated building services;

   2. the re-provisioning and extension of cargo examination buildings, vehicle inspection and detention areas and related supporting facilities for C&ED, ImmD, Agriculture and Fisheries Department, Hong Kong Police Force, Department of Health and Regional Services Department;

   3. the demolition of three pairs of kiosks for the inbound direction and re-provisioning of the remaining existing kiosks, canopy structures and traffic aids in each direction of traffic for C&ED and ImmD together with associated building services;

   4. the provision of two container vehicle X-ray examination systems, associated buildings and supporting services for C&ED; and

   5. provision of computer systems for the cross boundary movement of people and vehicles which will include additional hardware and software for the system for C&ED and ImmD within the re-provisioned kiosks and the passenger hall.

JUSTIFICATION

4. With the opening of the Lok Ma Chau boundary crossing in 1989, the road traffic between Hong Kong and Huanggang, Shenzhen has been increasing rapidly. At present there are 14 pairs of kiosks (seven Hong Kong bound and seven Mainland bound) for C&ED and ImmD, with an optimal handling capacity of about 1 000 to 1 200 vehicles per hour. Traffic volume usually exceeds this capacity starting from early in the morning. By late morning, about 1 500 to 1 600 vehicles per hour must be processed to avoid serious traffic congestion and tail back. Notwithstanding the fact that the existing kiosks are processing the vehicle crossings beyond its optimal capacity during the peak hours, long queues accumulate and congestion does not ease off until early evening when the traffic flow again reverts to about 1 000 vehicles per hour.

5. Moreover, the latest traffic forecast for the Lok Ma Chau boundary crossing has revealed that cross boundary passenger and freight traffic will continue to increase with an annual growth rate of about 9%. To accommodate the anticipated increase in traffic and passenger flows, we propose to increase the number of kiosks and expand associated facilities to provide a processing capacity of about 2 200 vehicles per hour. Five additional pairs of kiosks in each direction for C&ED and ImmD, together with ancillary facilities for user departments, are required to meet the anticipated demand up to 2004/2005 before the opening of the Shenzhen Western Corridor in 2004.

6. The part of the project under 6GB that we now propose to upgrade to Category A is the phase 1 works which have to be completed before the commencement of the phase 2 works.

FINANCIAL IMPLICATIONS

7. We estimate the total capital cost for the overall expansion of the Lok Ma Chau boundary crossing to be in the region of $1,290 million at December 1997 prices. The capital cost of phase 1 works is estimated to be $292.5 million in MOD prices (see paragraph 8 below), made up as follows -

		$ million
(a) Site formation		4.0
(b) Piling		42.6
(c) Building and carriageways		105.1
(d) Building services		29.9
(e) Drainage and external works		24.4
(f) Environmental mitigation measures		3.1
(g) Furniture and equipment		14.2
(h) Consultants' fees for		7.1
(i) contract administration	6.1
(ii) site supervision	1.0
(i) Electrical and Mechanical Services Trading Fund (EMSTF) for electrical and mechanical facilities for construction		1.8
(j) Contingencies		23.2
		______
Sub-total		255.4	(at December 1997 prices)
(k) Provision for price adjustment		37.1
		______
Total		292.5	(in MOD prices)
		______

A breakdown by man months of the cost estimate for consultants' fees and the estimated EMSTF charges are at the Enclosure.

8. Subject to approval, we will phase the expenditure as follows -

Year	$ million (Dec 1997)	Price adjustment factor	$ million (MOD)
1999 - 2000	212.6	1.12890	240.0
2000 - 01	24.6	1.19663	29.4
2001 - 02	18.2	1.26843	23.1
	______		______
	255.4		292.5
	______		______

9. We derived the MOD estimates on the basis of the latest Government's forecast of trend labour and construction prices for the period 1999 to 2002. We will tender the contract on a lump-sum basis without provision for price fluctuation because the contract period will be shorter than 21 months.

10. We estimate the additional annually recurrent expenditure of the project to be $34.937 million.

PUBLIC CONSULTATION

11. We consulted the Yuen Long Provisional District Board in December 1998 and the Board members supported the project.

ENVIRONMENTAL IMPLICATIONS

12. The Director of Highways engaged consultants in March 1995 to conduct a Preliminary Environmental Review (PER) and a Supplementary Preliminary Project Feasibility Study (SPPFS) Report in 1997. The PER and SPPFS Report were vetted and agreed by the Director of Environmental Protection (DEP). The PER and SPPFS Report concluded that an Environmental Impact Assessment (EIA) should be conducted at the detailed design stage to ensure the adverse environmental impacts arising from the construction and operation of the Lok Ma Chau boundary crossing extension can be mitigated to within established standards and guidelines.

13. Authorisation to proceed with the Lok Ma Chau boundary crossing was obtained under the Road (Works, Use and Compensation) Ordinance in 1985. The project is therefore exempted from the provisions of the EIA Ordinance. In line with the current practice, we have submitted an Environmental Study Report (ESR) as recommended in the PER to DEP for agreement. Based on the findings of the ESR, the environmental problems are manageable. Thus far, we had identified the mitigation measures which require to be implemented under phase 1. These measures include the formation of compensatory reed beds to provide ecological compensation for affected fish ponds and the provision of noise barrier planters at the edge of the hardstanding area. We have included $3.1 million in the project estimate for the implementation of the environmental mitigation and monitoring measures recommended for the phase 1 expansion works. Subject to DEP's agreement on the ESR findings of the likely environmental impacts of the project and the mitigation measures to be required for phase 2, we will implement the recommended mitigation measures and environmental monitoring and auditing requirements in the phase 2 expansion works.

14. We will control noise, dust and site run-off nuisances during construction to within established standards and guidelines through the implementation of appropriate mitigation measures in the relevant contracts.

LAND ACQUISITION

15. The phase 1 works of the project does not require any land acquisition.

BACKGROUND INFORMATION

16. We upgraded 6GB to Category B in September 1995. Finance Committee approved the upgrading of part of 6GB in January 1998 as 7GB, entitled "Expansion of kiosks and other facilities at Lok Ma Chau boundary crossing - pre-contract consultancy and design" at a cost of $104.1 million in MOD prices. We started the consultancy for phase 1 design in August 1998 under 7GB for completion in March 1999. We will start the phase 1 works in April 1999 for completion in March 2000. We plan to start the remaining works in April 2000 upon completion of the phase 1 works for completion in December 2002.

Transport Bureau
January 1999


(PWSC0063/WIN3)

Enclosure to PWSC(98-99)61

Breakdown of estimates of consultants' fees

		Estimated man months	Average MPS* salary point	Multiplier factor	Estimated fee ($million)
(A) Consultants' staff costs
(I) Contract administration
(a) Architectural discipline	Professdional Technical	12.7 14.7	40 16	2.4 2.4	1.8 0.7
(b) Civil/Structural engineering discipline	Professional Technical	15.5 18.9	40 16	2.4 2.4	2.2 0.9
(c) Building services discipline	Professional Technical	2.8 2.1	40 16	2.4 2.4	0.4 0.1
______
Sub-total					6.1
______
(II) Site supervision
Civil/Structural engineering discipline	Professional Technical	7.0 8.9	40 16	1.7 1.7	0.7 0.3
______
Sub-total					1.0
______
Total					7.1
______
(B) Charges by Electrical and Mechanical Services Trading Fund (EMSTF)		1.8
Project management fees for contract administration of closed circuit television system, public address systems, high mast lighting, electronic traffic aids and intercom system

Notes

(1)	A multiplier factor of 2.4 is applied to the average MPS point to arrive at the full staff costs including the consultant's overheads and profit, as the staff will be employed in the consultant's offices (At 1.4.1997, MPS pt. 40 = $59,210 p.m. and MPS pt. 16 = $19,860 p.m.). A multiplier factor of 1.7 is applied in case of site staff supplied by the consultants.
(2)	The figures given above are based on estimates prepared by the Director of Architectural Services. We will only know the actual man months and actual fees when we have selected the consultants through the usual competitive bidding system.
(3)	Since the establishment of the EMSTF on 1 August 1996 under the Trading Funds Ordinance, government departments are charged for design and technical consultancy services for electrical and mechanical installations provided by the Electrical and Mechanical Services Department (EMSD). The figures above are based on estimates prepared by the Director of Architectural Services. The actual cost for the service charges is subject to further discussion between the Government and the EMSD.

(PWSC0063/WIN3)



* MPS = Master Pay Scale