For discussion
on 23 September 1998
PWSC(98-99)18
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
Kowloon Development
Civil Engineering - Land development
469CL - South East Kowloon development at Kai Tak Airport - early development package
- the upgrading of part of 469CL, entitled "South East Kowloon development at Kai Tak Airport - site investigations and consultants fees", to Category A at an estimated cost of $109.8 million in money-of-the-day prices; and
- the retention of the remainder of 469CL in Category B.
PROBLEM
We need to carry out site investigations and detailed design of infrastructure for housing development in the north apron area of Kai Tak Airport (NAKTA).
PROPOSAL
2. The Director of Territory Development (DTD), with the support of the Secretary for Planning, Environment and Lands, proposes to upgrade part of 469CL to Category A at an estimated cost of $109.8 million in money-of-the-day (MOD) prices for site investigations and the engagement of consultants to undertake detailed design of infrastructure for housing development in NAKTA.
PROJECT SCOPE AND NATURE
3. We upgraded part of 469CL to Category A in February 1998 for decontamination and site preparation works at NAKTA. The remaining works under 469CL comprise the provision of infrastructure including roads, drainage, sewerage and a water supply system in NAKTA.
4. The part of the project we now propose to upgrade to Category A covers the site investigation works in NAKTA and the detailed design, including preparation of tender documents and assessment of tenders, of the following works -
- construction of about 4 kilometres of box culvert and 0.8 kilometres of open channel to replace the existing Kai Tak Nullah;
- construction of a sewage pumping station and about 3 kilometres of rising mains to convey sewage to the existing To Kwa Wan sewage treatment plant;
- construction of roads and associated drainage, sewerage and watermains in the northern part of NAKTA;
- upgrading and extension of Sung Wong Toi Road and associated drainage, sewerage and watermains;
- landscaping works in NAKTA; and
- provision of necessary environmental protection measures.
We also propose to include in the project a cultural heritage impact assessment for investigating the need of salvaging cultural remains at the Kai Tak airport site.
JUSTIFICATION
5. After the cessation of operation of the Hong Kong International Airport at Kai Tak (Kai Tak Airport) in July 1998, we plan to develop NAKTA in phases, mainly for housing development, to accommodate a population of about 130 000.
6. According to the current public housing development programme, the Director of Housing plans to commence housing construction in the northern part of NAKTA in November 1999 with a target population intake starting in early 2003. The housing development will progressively take place from the north to the south of NAKTA. In order to provide the necessary supporting infrastructure to tie in with the very tight housing development programme in the northern part of NAKTA, we need to start the site investigations and the detailed design of the infrastructural works in January 1999 for completion in phases from August 2000 to June 2002. This will enable the construction works of the infrastructure to proceed in phases commencing in September 2000 for full completion in 2006.
7. Due to insufficient in-house resources, DTD proposes to engage consultants to supervise the site investigation works and to carry out the detailed design.
FINANCIAL IMPLICATIONS
8. We estimate the capital cost of the project to be $109.8 million in MOD prices (see paragraph 9 below), made up as follows -
| | $ million |
|
|---|
| (a) Site investigations | | 14.7
|
| (b) Consultants' fees for | | 65.0
|
|
A breakdown by man months of the estimate for the consultants fees is at the Enclosure.
9. Subject to approval, we will phase the expenditure as follows -
|
Year
|
$ million
(Dec 97)
|
Price
adjustment
factor
|
$ million
(MOD)
|
|---|
|
1998 - 1999
|
3.0
|
1.06000
|
3.2 |
|
1999 - 2000
|
25.0
|
1.14878
|
28.7 |
|
2000 - 2001
|
35.0
|
1.24642
|
43.6 |
|
2001 - 2002
|
20.0
|
1.35237
|
27.0 |
|
2002 - 2003
|
5.0
|
1.46732
|
7.3 |
|
_______
|
|
_______ |
|
88.0
|
|
109.8 |
|
_______
|
|
_______ |
10. We have derived the MOD estimates on the basis of the Government's forecast of trend labour and construction prices for the period 1998 to 2003. We will award the proposed consultancy on a lump sum basis with provision for inflation adjustments as the consultancy period will exceed 12 months. We will tender the site investigation works under a standard remeasurement contract because the quantities of works involved may vary depending on the actual ground conditions. The contract for the site investigation works will not provide for inflation adjustments as the contract period will not exceed 21 months.
11. The proposed consultancy has no annually recurrent financial implications.
PUBLIC CONSULTATION
12. The proposed consultancy and site investigations aim at enabling the provision of supporting infrastructure for the housing development in NAKTA. Since we will confine the infrastructure works to the airport site which will have restricted access and is separated from the existing urban areas by major highways, there will be minimal impact on the public.
13. We published the gazette of the Outline Zoning Plans on the whole South East Kowloon development on 4 September 1998.
14. We briefed the Legislative Council Panel on Planning, Lands and Works on the proposed project on 10 September 1998. Members noted the details of the project but requested additional information on the South East Kowloon development as a whole. We will brief the Panel in this respect on 17 September 1998.
ENVIRONMENTAL IMPLICATIONS
15. The proposed consultancy will not have any environmental implications. As part of the South East Kowloon Development Feasibility Study under 440CL, we are conducting an Environmental Impact Assessment (EIA) in accordance with the EIA Ordinance to identify, predict and assess potential environmental impacts. We will incorporate all the measures recommended in the EIA into the detailed design and relevant works contract.
16. The infrastructure package covered by the proposed consultancy includes a number of works which require an environmental permit under the EIA Ordinance. We shall apply for the environmental permit before construction of the relevant works.
LAND ACQUISITION
17. The proposed consultancy does not require any land acquisition.
BACKGROUND INFORMATION
18. We included 469CL in Category B in September 1996.
19. On 27 February 1998, the Finance Committee approved the upgrading of part of 469CL to Category A as 494CL entitled "South East Kowloon development at Kai Tak Airport - decontamination and site preparation".
20. We plan to start the proposed consultancy and the site investigation works in January 1999 for completion in phases from August 2000 to June 2002 for construction works to proceed in phases commencing in September 2000. We plan to complete the construction works in phases from early 2003 to mid 2006 to tie in with the overall housing development programme in NAKTA.
Planning, Environment and Lands Bureau
September 1998
Enclosure to PWSC(98-99)18
469CL - South East Kowloon development at Kai Tak Airport -
early development package
|
Breakdown of the estimate for consultants fees
|
|---|
|
Consultant's staff costs
|
|
Estimated man months
|
Average MPS* salary point
|
Multiplier factor
|
Estimated fees
($ million)
|
|---|
|
(a) Supervision of site investigations
|
Professional
Technical
|
11
14
|
40
16
|
2.1
2.1
|
1.4
0.6 |
|
(b) Detailed design
|
Professional
Technical
|
239
260
|
40
16
|
3.0
3.0
|
42.5
15.5 |
|
(c) Preparation of tender documents and assessment of tenders
|
Professional
Technical
|
20
24
|
40
16
|
3.0
3.0
|
3.6
1.4 |
|
|
Total consultants staff costs
|
65.0 |
|
|
|
|
|
|
*MPS = Master Pay Scale
Notes
(1) A multiplier factor of 3 is applied to the average MPS point to arrive at the full staff costs including the consultants overheads and profit, as the staff will be employed in the consultants offices. A multiplier factor of 2.1 is applied to the average MPS point in the case of site staff supplied by the consultants. (At 1.4.97, MPS pt. 40 = $59,210 p.m. and MPS pt. 16 = $19,860 p.m.)
(2) The figures given above are based on estimates prepared by the Director of Territory Development. We will only know the actual man months and fees when we have selected the consultants through the normal competitive bidding system.
