PWSC(1999-2000)27
For discussion
on 26 May 1999
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 711 - HOUSING
Water Supplies - Fresh water supplies
| 212WF - | Transfer facilities from Butterfly Valley primary service reservoir to secondary service reservoirs in the metropolitan area - stage 1
|
Members are invited to recommend to Finance Committee the upgrading of 212WF to Category A at an estimated cost of $689.8 million in money-of-the-day prices for the laying of water mains to transfer fresh water from a new primary service reservoir at Butterfly Valley to three secondary service reservoirs in Kowloon.
PROBLEM
The existing fresh water transfer facilities feeding the secondary service reservoirs in Kowloon will not be able to cope with the projected growth in demand by 2003.
PROPOSAL
2. The Director of Water Supplies (DWS), with the support of the Secretary for Housing, proposes to upgrade 212WF to Category A at an estimated cost of $689.8 million in money-of-the-day (MOD) prices for the laying of water mains to transfer fresh water from a new primary service reservoir being constructed under project 272WF1 at Butterfly Valley to a secondary service reservoir to be constructed under 92WC2 at Tai Po Road and to two existing secondary service reservoirs at Ho Man Tin to meet the expected growth in demand.
PROJECT SCOPE AND NATURE
3. The scope of the project comprises -
- laying of about 0.5 kilometres of fresh water trunk mains ranging from 1 400 millimetres to 2 200 millimetres in diameter from Tung Chau West Street to Lai Chi Kok Road;
- laying of about 2.2 kilometres of fresh water trunk mains ranging from 1 200 millimetres to 1 800 millimetres in diameter from Castle Peak Road to the Shek Kip Mei No. 3 fresh water service reservoir at Tai Po Road to be constructed under project 92WC; and
- laying of about 4.3 kilometres of fresh water trunk mains of 1 200 millimetres in diameter from Cherry Street to the two secondary service reservoirs, namely Ho Man Tin East fresh water service reservoir and extension, and Ho Man Tin West fresh water service reservoir, in Ho Man Tin.
JUSTIFICATIONS
4. The existing Sha Tin and Ma On Shan groups of water treatment works provide fresh water for the metropolitan area (Hong Kong and Kowloon) and the north-eastern New Territories (Sha Tin and Ma On Shan). They have a total output capacity of 1 796 000 cubic metres per day and are serving a population of 3 012 000. We anticipate that by the year 2003, the daily demand for fresh water from the metropolitan area and north-eastern New Territories will increase to 1 805 000 cubic metres for an estimated population of about 3 145 000. If no new facilities are provided there will be a shortfall of 9 000 cubic metres per day. Furthermore, we forecast that the daily demand for fresh water will increase to 2 046 000 cubic metres to serve a population of 3 575 000 by 2011 leading to a shortfall of 250 000 cubic metres per day in the absence of additional supply facilities.
5. To cope with the above anticipated growth in demand, we are implementing project 140WF "Additional treatment and water transfer facilities for the metropolitan area and north-eastern New Territories - stage 1, construction of Tai Po treatment works and pumping station"3. By June 2001, these new facilities can provide an additional 250 000 cubic metres of fully treated fresh water per day, bringing the combined output capacity of the integrated Sha Tin and Ma On Shan groups of treatment works to 2 046 000 cubic metres per day, to meet the projected demand up to 2011. Another project 272WF "Additional treatment and water transfer facilities for the metropolitan area and north-eastern New Territories - stage 1, construction of Butterfly Valley primary service reservoir and aqueducts from Tai Po to Butterfly Valley" is also underway for the construction of a primary service reservoir at Butterfly Valley and the laying of aqueducts to transfer the treated fresh water from Tai Po treatment works to the latter.6. To deliver treated fresh water from the new Butterfly Valley primary service reservoir to consumers in the metropolitan area, we have to lay trunk water mains to transfer the water to a number of secondary service reservoirs in Kowloon. These include Ho Man Tin East fresh water service reservoir and extension, and Ho Man Tin West fresh water service reservoir (which are currently providing water for the area) and the Shek Kip Mei No.3 fresh water service reservoir, which is to be constructed under project 92WC "Water supply to West Kowloon reclamation, stage 2 - main works". To tie in with the roadworks programme of the West Kowloon reclamation, we have already advanced part of the mainlaying works under project 211WF 4 "Transfer facilities from the Butterfly Valley primary service reservoir to secondary service reservoirs in the metropolitan area - mainlaying works in West Kowloon reclamation". We now need to lay the remaining water mains under this project to enable the transfer of treated fresh water to the three secondary service reservoirs mentioned above to meet the projected demand in the metropolitan area up to 2011.
FINANCIAL IMPLICATIONS
7. We estimate the capital cost of the project to be $689.8 million in MOD prices (see paragraph 8 below), made up as follows -
| $ million
|
|---|
| (a) Pipe materials | | 59.6
|
| (b) Mainlaying | | 439.7
|
| (c) Consultants' fees | | 61.9
|
|
A breakdown by man months of the estimate for consultants' fees and resident site staff costs is at the Enclosure.
8. Subject to approval, we will phase the expenditure as follows -
| Year | $ million
(Dec 1998) | Price
adjustment
factor
| $ million
(MOD)
|
|---|
| 1999 - 2000 | 17.5 | 1.02625 | 18.0
|
| 2000 - 01 | 125.7 | 1.06217 | 133.5
|
| 2001 - 02 | 185.0 | 1.09934 | 203.4
|
| 2002 - 03 | 169.7 | 1.13782 | 193.1
|
| 2003 - 04 | 90.7 | 1.17765 | 106.8
|
| 2004 - 05 | 28.7 | 1.21886 | 35.0
|
| ______ | | ______
|
| 617.3 | | 689.8
|
| ______ | | ______
|
9. We derived the MOD estimates on the basis of the Government forecast of trend labour and construction prices for the period 1999 to 2005. We will invite tenders for the works under a standard remeasurement contract because the quantities of the mainlaying works may vary with the actual ground conditions. We will provide for price adjustments in the contracts as the construction period will exceed 21 months.
10. We estimate the annually recurrent expenditure arising from the project to be $520,000.
11. This project by itself will lead to an increase in water charges by 0.29% in real terms by 2005 5 .
PUBLIC CONSULTATION
12. We consulted the Yau Tsim Mong Provisional District Board, the Kowloon City Provisional District Board, and the Sham Shui Po Provisional District Board (SSPPDB) on 30 October 1997, 6 November 1997 and 27 November 1997 respectively. The three Boards supported the project. However, members of all three Boards expressed concern on the environmental and traffic impacts of the proposed works during construction period. Members of the SSPPDB also requested us to carefully consider the alignments and method of construction of the water mains to minimise nuisance to the public. We have taken due consideration of such concerns during the detailed design stage. We will include the environmental control measures and traffic management requirements in relevant works contracts and keep the Boards informed of the implementation of the measures during the progress of the works.
ENVIRONMENTAL IMPLICATIONS
13. In June 1995, the Director of Environmental Protection conducted an environmental review and concluded that the project would have no long term environmental impact and no environmental impact assessment would be necessary. We will control noise, dust and site run-off nuisances during construction to comply with the established standards and guidelines by incorporating relevant environmental pollution control clauses in the works contracts.
LAND ACQUISITION
14. The project does not require land acquisition.
Background INFORMATION
15. We upgraded 212WF to Category B in September 1995. In October 1996, we engaged consultants at a cost of $2.5 million to carry out the investigation study for the project. Upon completion of the study, we engaged consultants in March 1998 at a cost of $1.1 million to proceed with the detailed design for the works. We charged the costs of both consultancies to block allocation Subhead B100HX "Minor housing development related works, studies and investigations for items in Category D of the Public Works Programme". The consultants have now substantially completed the detailed design.
16. Subject to Finance Committee's approval to upgrade this project to Category A, we will invite tenders for the works contracts in June 1999. We plan to start the construction works in September 1999 for completion by early 2003. By then, these water mains, together with the new facilities under projects 140WF, 272WF and 211WF, mentioned at paragraphs 5 and 6 above, will improve the supply to the secondary service reservoirs in Kowloon to enable them to cope with the anticipated demand up to 2011.
--------------------------------------
Housing Bureau
May 1999
(PWSC0107/WIN4)
Enclosure to PWSC(1999-2000)27
212WF - Transfer facilities from Butterfly Valley primary service reservoir
to secondary service reservoirs in the metropolitan area - stage 1
Breakdown of estimates for consultants' fees
| Consultants' staff costs
| Estimated
man
months
| Average
MPS*
salary
point
| Multiplier
factor
| Estimated
fee
($ million)
|
|---|
| (a) Consultants' fees for works in construction stage
| Professional
Technical | 3.5
2.0 | 40
16 | 2.4
2.4 | 0.5
0.1
|
| (b) Site supervision by resident site staff employed by the consultants | Professional
Technical | 240
1000 | 40
16
| 1.7
1.7
| 25.6
35.7
______
|
| Total consultants's staff costs
| 61.9
______
|
* MPS = Master Pay Scale
Notes
1. The above figures are based on information provided by the Director of Water Supplies. The consultants fees for supervision of the construction stage works have been agreed as part of Consultancy Agreement No. CE 58/97 "Transfer facilities from Butterfly Valley primary service reservoir to secondary service reservoirs in the metropolitan area - stage 1, design and construction".
2. A multiplier factor of 2.4 is applied to the average MPS point to arrive at the full staff costs including the consultants overheads and profits, as the staff will be employed by the consultants office. (At 1.4.98, MPS 40 = $62,780 p.m. and MPS 16 = $21,010 p.m.). A multiplier factor of 1.7 is applied in the case of site staff supplied by the consultants.
(PWSC0107/WIN4)
1.In July 1996, Finance Committee (FC) approved the upgrading of part of 140WF as 272WF to Category A at an estimated cost of $2,305.2 million in MOD prices for the construction of a new Butterfly Valley primary service reservoir and aqueducts from Tai Po treatment works to this reservoir. The construction of the primary service reservoir and the aqueducts started in May and June 1997 respectively. Both are scheduled for completion in July 2000.
2.In October 1998, FC approved the upgrading of part of 58WC as 92WC to Category A at an estimated cost of $162.19 million in MOD prices.
3.In January 1997, FC approved the upgrading of 140WF to Category A at an estimated cost of $2,226.9 million in MOD prices for the construction of Tai Po treatment works and pumping station. The construction works started in February 1998 for completion in June 2001.
4.In June 1995, FC approved the upgrading of 211WF to Category A at an estimated cost of $77.8 million in MOD prices for the laying of fresh water mains on the West Kowloon reclamation. The construction works started in August 1995 and was completed in July 1998.
5.The increase in water charges is calculated on the assumption that the demand remains static during the period from 1998 to 2005 and the amount of Government subsidy to the Waterworks operations is to be contained at the present level.]
