PWSC(1999-2000)20

For discussion
on 26 May 1999

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 707 - NEW TOWNS AND URBAN AREA DEVELOPMENT
Environmental Protection - Sewerage and sewage treatment
Housing - Rural housing improvement
Transport - Roads

109DS -	Provision of sewers and sewage treatment plants in rural areas in the New Territories
18HH -	Village improvements and development schemes in the New Territories
446TH -	Improvement, reconstruction and extension of village access roads in the New Territories

Members are invited to recommend to Finance Committee -

1. the upgrading of 109DS, entitled "Provision of sewers and sewage treatment plants in rural areas in the New Territories: 1999-2000 Programme", to Category A at an estimated cost of $9.7 million in money-of-the-day prices;

2. the upgrading of 18HH, entitled "Village improvements and development schemes in the New Territories: 1999-2000 Programme", to Category A at an estimated cost of $56.6 million in money-of-the-day prices; and

3. the upgrading of 446TH, entitled "Improvement, reconstruction and extension of village access roads in the New Territories: 1999-2000 Programme", to Category A at an estimated cost of $22.7 million in money-of-the-day prices.

PROBLEM

Some villages in the New Territories lack basic amenities and infrastructure and suffer problems arising from pollution and local flooding.

PROPOSAL

2. The Director of Home Affairs (DHA), with the support of the Secretary for Home Affairs, proposes to upgrade 109DS, 18HH and 446TH to Category A at a total estimated cost of $89 million in money-of-the-day (MOD) prices to implement the 1999-2000 programme of the Rural Planning and Improvement Strategy (RPIS) in the rural New Territories.

PROJECT SCOPE AND NATURE

3. The scope of RPIS works comprises -

1. works related to infrastructural improvement or development within village layouts and the provision of serviced land for village expansion;

2. the provision of sewerage networks and treatment plants to unsewered developments within the village confines (major sewers relating to the implementation of the Sewerage Masterplan Studies carried out by the Environmental Protection Department are excluded from the RPIS);

3. improvements and extensions to existing village roads and van tracks with footpaths, passing places and associated drainage;

4. incorporation of new amenities such as sitting-out areas, children’s playgrounds and gardens in existing village layouts;

5. works related to land drainage, river training and flood protection schemes for villages;

6. the provision and improvement of communal irrigation and field drainage facilities as well as farm access in selected agricultural areas; and

7. other related works endorsed by the RPIS Minor Works District Working Groups and approved by the RPIS Minor Works Steering Committee.

4. Details of the proposed works are at Enclosure 1.

JUSTIFICATION

5. We need to improve the environmental conditions of some rural villages in the New Territories which have deteriorated due to local flooding and pollution arising from human, animal and industrial sources. The RPIS is a coherent strategy endorsed by the Executive Council in 1989 to improve the basic amenities and infrastructure in the rural areas in the New Territories. The strategy focuses on the implementation of a 10-year programme of infrastructural development and environmental improvement. The proposed works constitute the 1999-2000 programme of the RPIS with the cost of each works item being not greater than $15 million.

FINANCIAL IMPLICATIONS

6. We estimate the total capital cost of the 1999-2000 programme of works at $89 million in MOD prices (see paragraph 7 below), made up as follows -

Item	District	$ million
(a) 109DS	(i) Islands	8.7
	(ii) Contingencies	0.6 ______
	Sub-total	9.3	(at December 1998 prices)
	(iii) Provision for price adjustment	0.4 ______
	Total	9.7	(in MOD prices)
(b) 18HH	(i) Islands	13.1
	(ii) North	1.4
	(iii) Sai Kung	2.1
	(iv) Sha Tin	1.5
	(v) Tuen Mun	7.6
	(vi) Yuen Long	25.1
	(vii) Contingencies	3.6 ______
	Sub-total	54.4	(at December 1998 prices)
	(viii) Provision for price adjustment	2.2
	Total	56.6	(in MOD prices)
(c) 446TH	(i) Islands	13.0
	(ii) Sai Kung	6.2
	(iii) Yuen Long	0.9
	(iv) Contingencies	1.4 ______
	Sub-total	21.5	(at December 1998 prices)
	(v) Provision for price adjustment	1.2 ______
	Total	22.7	(in MOD prices)

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

Year	$ million (Dec 1998)			Price adjustment factor	$ million (MOD)
	109DS	18HH	446TH		109DS	18HH	446TH
1999 - 2000	4.7	33.7	7.3	1.02625	4.8	34.6	7.5
2000 - 2001	4.6	20.7	11.4	1.06217	4.9	22.0	12.1
2001 - 2002	-	-	2.8	1.09934	-	-	3.1
	_____	_____	_____		_____	_____	_____
Total	9.3	54.4	21.5		9.7	56.6	22.7
	_____	_____	_____		_____	_____	_____

8. We have derived the MOD estimates on the basis of the Government's latest forecast of trend labour and construction prices for the period 1999 to 2002. The proposed works consist of 18 small improvement projects. We will use lump-sum contracts for project items of clearly defined scope and standard remeasurement contracts for items involving underground works or other works of which the extent and exact quantities may vary during the construction stage. For some items where the quantities of the works may vary with the actual ground condition, we will use existing remeasurement term contracts of the relevant works departments.

9. We estimate the annually recurrent expenditure to be $2.51 million.

PUBLIC CONSULTATION

10. We consulted six New Territories Provisional District Boards in June 1998 and February 1999. All indicated their support to the proposed projects. Details of the consultations with the relevant Provisional District Boards are at Enclosure 2.

ENVIRONMENTAL IMPLICATIONS

11. The RPIS programme involves small scale works in rural areas and in general, their implementation will improve the rural environment. As they are minor projects, there will be no adverse environmental impacts during operation. Moreover, we will design and implement the projects in accordance with the "RPIS Minor Projects Environmental Guidance Note" issued by the Director of Environmental Protection. For short-term impacts during construction, we will implement environmental pollution control measures under the relevant works contracts to mitigate noise, dust and site run-off nuisances.

LAND ACQUISITION

12. No land resumption is required for the works proposed under this programme.

Background INFORMATION

13. We included 109DS, 18HH and 446TH in the Public Works Programme in October 1990 for the implementation of a rolling programme of infrastructural development and environmental improvement works in the rural New Territories as formulated in the RPIS, at that time under the co-ordination of the Director of Territory Development. DHA took over responsibility for the administration and co-ordination of RPIS Minor Works project items in October 1994.

14. We revised the scopes of 109DS, 18HH and 446TH in December 1991 and January 1994 to include improvement works falling within country park areas and rural areas that are within new towns. We upgrade works under these three items to Category A on an annual programme basis.

15. We plan to start the proposed works under 109DS, 18HH and 446TH in June 1999 for completion in April 2001.

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Home Affairs Bureau
May 1999

Enclosure 1 to PWSC(1999-2000)20

Proposed project list for the
Rural Planning and Improvement Strategy (1999-2000 programme)
109DS - Provision of sewers and sewage treatment plants in
rural areas in the New Territories

Item	District	Project Title
1	Islands	Construction of connecting sewer for Tung Wan Tau, Mui Wo

18HH - Village improvements and development schemes
in the New Territories

Item	District	Project Title
1	Islands	Improvement of irrigation works at Sai Tso Wan, Lantau (Phase II)
2	Islands	Improvement of streamcourse at Tong Fuk Village, South Lantau
3	North	Construction of paving and drainage system at Ping Che San Tsuen, Ta Kwu Ling
4	Sai Kung	Improvement of drainage at Tseng Lan Shue (Phase II)
5	Sha Tin	Construction of water supply system to Lower Wong Chuk Yeung
6	Tuen Mun	Improvement of drainage at Shun Fung Wai
7	Tuen Mun	Improvement of drainage at Siu Lam
8	Tuen Mun	Construction of sitting-out area at Nim Wan Village
9	Yuen Long	Construction of drainage channel in Shan Ha Tsuen (East), Ping Shan
10	Yuen Long	Improvement of interceptor at Tai River, Ping Shan
11	Yuen Long	Improvement of drainage at Kam Tin Road, Kam Tin
12	Yuen Long	Construction of drainage channel and paving at Shek Wu Wai Tsuen, San Tin
13	Yuen Long	Improvement of paving and drainage at Tai Sang Wai, San Tin
14	Yuen Long	Construction of village improvement works at Tin Sum, Ha Tsuen

446TH - Improvement, reconstruction and extension of village
access roads in the New Territories

Item	District	Project Title
1	Islands	Construction of access road from Sham Wat to Sham Shek Tsuen, Lantau
2	Sai Kung	Improvement of access road at Ta Ho Tun and footpath on Hiram's Highway
3	Yuen Long	Reconstruction of footbridge near Pat Heung Temple, Sheung Tsuen, Pat Heung

Enclosure 2 to PWSC(1999-2000)20

Public consultation for the implementation of
Rural Planning and Improvement Strategy (1999-2000 programme)

District	Date	Mode of consultation	Remarks
Islands	15 February 1999	Provisional District Board circulation of papers	Project items were supported
North	15 February 1999	Provisional District Board District Development & Environmental Improvement Committee circulation of papers	Project item was supported
Sai Kung	25 June 1998	Provisional District Board Environmental Improvement Committee meeting	Project item was supported
	4 February 1999	Provisional District Board Environmental Improvement Committee meeting	Project item was supported
Sha Tin	23 February 1999	Provisional District Board Development & Housing Committee meeting	Project item was supported
Tuen Mun	12 February 1999	Provisional District Board Environmental Improvement & District Development meeting	Project items were supported
Yuen Long	24 February 1999	Provisional District Board Environmental Improvement Committee circulation of papers	Project items were supported