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For discussion FCR(2019-20)5A
on 13 December 2019
ITEM FOR FINANCE COMMITTEE
RECOMMENDATION OF THE PUBLIC WORKS SUBCOMMITTEE ON
PUBLIC WORKS PROGRAMME AND CAPITAL SUBVENTION
PROJECTS
PURPOSE
This note recommends upgrading 780CL “Site formation and
infrastructure works for public housing development at Wang Chau, Yuen Long” to
Category A. This note also provides updates on the estimated project cost,
estimated cash flows and implementation programme for 780CL.
JUSTIFICATION
2. On 29 March 2019, the Public Works Subcommittee (PWSC)
recommended the Finance Committee (FC) to approve the upgrading of 780CL to
Category A at an estimated cost of $2,390.2 million in money-of-the-day (MOD)
prices. Members have requested the recommendation on 780CL should be submitted to
the FC for separate voting.
3. The relevant paper considered by the PWSC (i.e. PWSC(2018-19)40),
with updates shaded in grey, is at Enclosure. As stated in the paper, the Civil
Engineering and Development Department has invited tenders for the construction
works listed in paragraphs 3(a), 3(b), part of 3(c) and part of 3(e) of the paper in
order to enable early commencement of the proposed works. The returned tender
price was lower than the original estimate which has reflected the prevailing market
situation. Accordingly, the estimated project cost of the project is reduced from the
original estimated $2,390.2 million to $1,800.2 million in MOD prices (about
$590 million (24.7%) less than the earlier estimate) and the cash flows are also
revised. The latest estimate should be adequate to deliver the proposed works.
Opportunity has also been taken to update the implementation programme of the
project.
4. The project scope as recommended in PWSC(2018-19)40 remains
unchanged.
/5 …..
Encl.
FCR(2019-20)5A Page 2 5. In April 2019, we issued FCR(2019-20)5 inviting Members to approve
the upgrading of 780CL to Category A. The paper has not been discussed by the FC.
This paper supersedes FCR(2019-20)5.
6. Members are invited to approve the recommendation above.
--------------------------------------
Financial Services and the Treasury Bureau
December 2019
Enclosure to FCR(2019-20)5A
HEAD 711 - HOUSING
Civil Engineering – Land development
780CL – Site formation and infrastructure works for public housing
development at Wang Chau, Yuen Long
Members are invited to recommend to the Finance
Committee the upgrading of 780CL to Category A at an
estimated cost of $1,800.2 million in money-of-the-day
prices.
PROBLEM
We need to carry out site formation and infrastructure works to
support the proposed Wang Chau public housing development Phase 1, Yuen
Long (WCPHD1).
PROPOSAL
2. The Director of Civil Engineering and Development, with the
support of the Secretary for Transport and Housing, proposes to upgrade 780CL
to Category A, at an estimated cost of $1,800.2 million in money-of-the-day
(MOD) prices for the site formation and infrastructure works.
PROJECT SCOPE AND NATURE
3. The proposed scope of works under 780CL includes –
(a) formation of about 5.6 hectare of land platforms and
construction of associated retaining walls and slopes;
(b) construction of a new single two-lane carriageway of
about 400 metres long with a connected underpass,
footpaths and pick-up / drop-off areas;
/(c) …..
Enclosure to FCR(2019-20)5A Page 2
(c) improvement works at the junction of Long Ping
Road and Fung Chi Road, and about 1.1 kilometres
long road resurfacing works along a section of Long
Ping Road;
(d) construction of a footbridge across Long Ping Road
with associated lifts; and
(e) ancillary works including drainage, sewerage,
waterworks and landscaping works.
A location and site plan of the proposed works are at Enclosure 1.
4. Subject to funding approval by the Finance Committee (FC), we
plan to commence the proposed works in early 2020. The site formation works
are expected to be completed in 2023, whereas the infrastructure works are
expected to be completed in 2024. In order to meet the tight schedule, we have
invited tenders for the construction works listed in paragraphs 3(a), 3(b), part of
3(c) and part of 3(e) to enable early commencement of the proposed works.
Tenders will only be awarded after obtaining FC’s funding approval.
JUSTIFICATION
5. WCPHD1 is planned to be completed in 2026-27 and will provide
about 4 000 units for a population of about 12 300. It is necessary to form land
and construct infrastructure to support WCPHD1. To tie in with the population
intake of WCPHD1, timely completion of the proposed works is necessary.
FINANCIAL IMPLICATIONS
6. We estimate the capital cost of the project to be $1,800.2 million in
MOD prices (please see paragraph 8 below), broken down as follows –
$ million
(in MOD prices)
(a) Site formation works and
retaining structures
736.5
(b) Road works including underpass
and footbridge
438.7
/$ million …..
Enclosure to FCR(2019-20)5A Page 3
$ million
(in MOD prices)
(c) Ancillary works including
drainage, sewerage, waterworks
and landscaping works
247.0
(d) Consultants’ fees for 12.4
(i) contract administration 5.0
(ii) management of resident site
staff (RSS)
7.4
(e) Remuneration of RSS
201.9
(f) Contingencies 163.7
Total 1,800.2
7. Due to insufficient in-house resources, we propose to engage
consultants to undertake contract administration and site supervision of the
proposed works. A breakdown of the estimates for consultants’ fees and RSS
costs by man-months is at Enclosure 2.
8. Subject to funding approval, we plan to phase the expenditure as
follows –
Year $ million
(MOD)
2020 – 2021
130.6
2021 – 2022
336.7
2022 – 2023
507.1
2023 – 2024
2024 – 2025
2025 – 2026
425.5
302.8
86.9
/Year …..
Enclosure to FCR(2019-20)5A Page 4
Year $ million
(MOD)
2026 – 2027 10.6
Total 1,800.2
9. We have derived the MOD estimates on the basis of the
Government’s latest set of assumptions on the trend rate of change in the prices
of public sector building and construction output for the period from 2020 to
2027. We will deliver the proposed works under New Engineering Contract1.
The contracts will provide for price adjustments.
10. We estimate the annual recurrent expenditure arising from the
proposed works to be about $3.5 million.
PUBLIC CONSULTATION
11. We consulted the Ping Shan Rural Committee (PSRC) on 12 May
2015 and the Traffic and Transport Committee of the Yuen Long District
Council (YLDC) on 21 May 2015 on the proposed road scheme and WCPHD1.
On 30 October 2015, we gazetted the proposed road works under the Roads
(Works, Use and Compensation) Ordinance (Cap. 370) (RO) and the proposed
sewerage works under RO as applied by Section 26 of the Water Pollution
Control (Sewerage) Regulation (Cap. 358AL). We received 159 objections2
after the gazettal, and met with the objectors between January and April 2016 to
explain the details of the project and the compensation package under the
prevailing policy, etc. At the end, four objectors withdrew their objections
unconditionally, while the remaining 155 objectors maintained their objections.
/12. …..
1 New Engineering Contract is a suite of contracts developed by Institution of Civil Engineers,
United Kingdom. It is a contract form that emphasises cooperation, mutual trust and collaborative
risk management between contracting parties.
2 The 159 objections do not include the three objections that explicitly objected to land resumption
in accordance with the Lands Resumption Ordinance (Cap. 124).
Enclosure to FCR(2019-20)5A Page 5
12. We subsequently submitted the objections and the
correspondences with the objectors (including meeting minutes) to the Chief
Executive in Council for consideration. On 11 October 2016, the Chief
Executive in Council authorised the proposed road and sewerage works without
modification. The notice of authorisation was gazetted on 11 November 2016.
13. We consulted PSRC and the Town Planning and Development
Committee (TP&DC) of YLDC on 14 and 20 September 2017 respectively on
the proposed works. Members of the PSRC had in principle no objection to the
proposed works. Members of TP&DC generally supported the proposed works,
although some TP&DC members raised objections to the land resumption.
14. We consulted the Advisory Committee on the Appearance of
Bridges and Associated Structures3 (ACABAS) on the design of the proposed
underpass, retaining walls and footbridge on 17 October 2017. ACABAS
accepted the proposed design on 21 November 2017.
15. We consulted the Legislative Council (LegCo) Panel on Housing
on the proposed works on 6 November 2017. Members requested that the
compensation and rehousing arrangements should be discussed at a joint meeting
of Panel on Development and Panel on Housing before submitting the funding
proposal to the Public Works Subcommittee for consideration. The Government
announced the proposed enhancements to the ex-gratia compensation and
rehousing arrangements for eligible domestic occupants in squatters and business
undertakings affected by Government's development clearance exercises (New
Measures) on 10 May 2018. FC approved the New Measures on 18 July 2018,
which is also applicable to Wang Chau Project. We provided the latest
information on WCPHD1, at the LegCo Panel on Housing Subcommittee to
Follow up the Issues Related to the Wang Chau Development Project (the
Subcommittee) meeting on 25 April 2018, 30 November 2018 and 1 February
2019. We conducted a site visit with the Subcommittee on 19 June 2018. At the
joint meeting of Panel on Development and Panel on Housing on 29 June 2018,
the Panels supported the submission of the funding proposal to the Public Works
Subcommittee for consideration.
/ENVIRONMENTAL …..
3 The Advisory Committee on the Appearance of Bridges and Associated Structures, which
comprises representatives of the Hong Kong Institute of Architects, the Hong Kong Institution of
Engineers, the Hong Kong Institution of Planners, academic institutions, Architectural Services
Department, Highways Department, Housing Department and Civil Engineering and Development
Department, is responsible for vetting the design of bridges and other structures associated with
the public highway system, including noise barriers and semi-enclosures, from aesthetic and visual
impact points of view.
Enclosure to FCR(2019-20)5A Page 6
ENVIRONMENTAL IMPLICATIONS
16. The project is not a designated project under the Environmental
Impact Assessment Ordinance (Cap. 499). We have completed the Preliminary
Environmental Review (PER) for the project. The PER concluded and the
Director of Environmental Protection agreed that the project would not cause any
long-term adverse environmental impacts with implementation of mitigation
measures including proper drainage systems with silt traps and oil interceptors,
low noise road surfacing, etc.
17. We have incorporated into the works contracts the mitigation
measures recommended in the PER to control environmental impacts arising
from the construction works to within established standards and guidelines.
These measures include the use of silencers, mufflers, acoustic lining or shields
for noisy construction activities, frequent cleaning and watering of the site, and
the provision of wheel-washing facilities. We have included in the project
estimate the cost to implement the environmental mitigation measures.
18. At the planning and design stages, we have considered the
alignment, design level and construction method of the proposed works so as to
reduce generation of construction waste where possible. In addition, we will
require the contractors to reuse inert construction waste (e.g. excavated soil and
rock fill) on site or in other suitable construction sites as far as possible, in order
to minimise disposal of inert construction waste at public fill reception facilities4
(PFRF). We will encourage the contractors to maximise the use of recycled or
recyclable inert construction waste as well as the use of non-timber formworks to
further minimise generation of construction waste.
19. At the construction stage, we will ensure that the day-to-day
operations on site comply with the approved plan to be submitted by the
contractors setting out the waste management measures. We will require the
contractors to separate the inert portion from non-inert construction waste on site
for disposal at appropriate facilities. We will control the disposal of inert and
non-inert construction waste at PFRF and landfills respectively through a trip-
ticket system.
/20. …..
4 Public fill reception facilities are specified in Schedule 4 of the Waste Disposal (Charges for
Disposal of Construction Waste) Regulation (Cap. 354N). Disposal of inert construction waste in
public fill reception facilities requires a licence issued by the Director of Civil Engineering and
Development.
Enclosure to FCR(2019-20)5A Page 7
20. We estimate that the proposed works will generate in total about
400 000 tonnes of construction waste. Of these, we will reuse about
110 000 tonnes (27.5%) and 8 000 tonnes (2.0%) of inert and non-inert
construction wastes respectively on site and deliver about 254 000 tonnes
(63.5%) of inert construction waste to PFRF for subsequent reuse. In addition,
we will dispose of the remaining about 28 000 tonnes (7.0%) of non-inert
construction waste at landfills. The total cost for accommodating construction
waste at PFRF and landfill sites is estimated to be about $23.6 million for this
project (based on a unit charge rate of $71 per tonne for disposal at PFRF, and
$200 per tonne for disposal at landfills as stipulated in the Waste Disposal
(Charges for Disposal of Construction Waste) Regulation (Cap. 354N)).
HERITAGE IMPLICATIONS
21. The proposed works will not affect any heritage site, i.e. all
declared monuments, proposed monuments, graded historic sites or buildings,
sites of archaeological interest and government historic sites identified by the
Antiquities and Monuments Office.
TRAFFIC IMPLICATIONS
22. The proposed works will not cause any significant traffic impact
during the construction stage and operation stage. Temporary traffic
arrangements will be implemented to facilitate the construction works which will
require temporary partial road closures. We will display publicity boards on site
giving details of the temporary traffic arrangements, and the anticipated
completion dates of individual section of works. In addition, we will set up a
telephone hotline to respond to public enquiries or complaints.
LAND ACQUISITION
23. We posted on site and gazetted the land resumption notice on 2 and
5 May 2017 under the Lands Resumption Ordinance (Cap. 124) and RO
respectively. The land was resumed and reverted to the Government on
3 August 2017. The area resumed for the proposed works is about 34 528 square
metres (m2) and involves 79 private lots. The area of government land to be
cleared is about 33 920 m2. The estimated cost of land resumption and clearance
is about $311.1 million and will be charged to Head 701 – Land Acquisition.
A total of about 180 households, involving about 400 clearees, were registered in
the pre-clearance freezing survey. The clearance will also involve three graves
and 16 urns (Kam Taps). The breakdown of the estimate for land acquisition
cost is at Enclosure 3.
/BACKGROUND …..
Enclosure to FCR(2019-20)5A Page 8
BACKGROUND INFORMATION
24. We upgraded 780CL to Category B in September 2014.
25. We engaged consultants in March 2015 to undertake the detailed
design and site investigation for the proposed works at an estimated cost of about
$19.0 million (in MOD prices) under the block allocation Subhead B100HX
“Minor housing development related works, studies and investigations for items
in Category D of the Public Works Programme”. We have completed the
detailed design for the proposed works.
26. The proposed works will involve removal of approximately 1 057
no. of trees, including 1 032 no. of trees to be felled and 25 no. of trees to be
transplanted within the project site. Amongst them, three important trees5 will be
affected during the implementation of the project. A summary of important trees
affected is provided at Enclosure 4. We will incorporate planting proposals as
part of the proposed works, including estimated quantities of 1 057 no. of trees
and approximately 15 300 no. of shrubs.
27. We estimate that the proposed works will create 775 jobs (630 for
labourers and another 145 for professional/technical staff) providing a total
employment of 27 000 man-months.
----------------------------------------------
Transport and Housing Bureau
December 2019
5 “Important trees” refer to trees in the Register of Old and Valuable Trees, or any other trees that
meet one or more of the following criteria–
(a) trees of 100 years old or above;
(b) trees of cultural, historical or memorable significance e.g. Fung Shui tree, tree as landmark of
monastery or heritage monument, and trees in memory of an important person or event;
(c) trees of precious or rare species;
(d) trees of outstanding form (taking account of overall tree sizes, shape and any special features)
e.g. trees with curtain like aerial roots, trees growing in unusual habitat; or
(e) trees with trunk diameter equal to or exceeding 1.0 metre (m) (measured at 1.3 m above ground
level), or with height/canopy spread equal to or exceeding 25 m.
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Enclosure 1 附
件
元朗橫洲公營房屋發展之工地平整及基礎設施工程
PUBLIC HOUSING DEVELOPMENT AT WANG CHAU, YUEN LONGSITE FORMATION AND INFRASTRUCTURE WORKS FOR
PWP ITEM NO. 780CL
780CL工務計劃項目編號
工地平面圖
SITE PLAN
METRES
0 250 500 750 1000 1250
LOCATION PLAN
位置圖
METRES
0 50 100 150 200 250
擬議排水管
擬議排污管
PROPOSED BOX CULVERT
PROPOSED STORMWATER DRAINAGE PIPE
圖例 LEGEND
擬議箱形暗渠
擴闊現有箱形暗渠
WIDENING OF EXISTING BOX CULVERT
擬議重鋪路面
PROPOSED RESURFACING WORKS
SITE FORMATION WORKS
WANG CHAU DEVELOPMENT PHASE 1
之工地平整工程
橫洲發展計劃第一期
擬議行車道及行人路 PROPOSED SEWER PIPE
擬議沖廁水管
PROPOSED FRESH WATER MAIN
PROPOSED FLUSHING WATER MAIN
擬議食水管WITH FOOTPATHS
PROPOSED CARRIAGEWAY
擬議護土構築物
PROPOSED RETAINING STRUCTURES
擬議地下通道
PROPOSED UNDERPASS
擬議路緣線
PROPOSED KERB LINE
1
Enclosure 2
780CL – Site formation and infrastructure works
for public housing development at Wang Chau, Yuen Long
Breakdown of the estimates for consultants’ fees and resident site staff costs
(in September 2018 prices)
Estimated
man-
months
Average
MPS*
salary
point
Multiplier (Note 1)
Estimated
fee
($ million)
(a) Consultants’ fees for
contract
administration (Note 2)
Professional
Technical
--
--
--
--
--
--
3.8
0.6
Sub-total
4.4#
(b) Resident site staff
(RSS) costs (Note 3)
Professional
Technical
656
2 029
38
14
1.6
1.6
86.0
93.3
Comprising –
Sub-total 179.3
(i) Consultants’ fees
for management
of RSS
6.6#
(ii) Remuneration of
RSS
172.7#
Total 183.7
* MPS = Master Pay Scale
Notes
1. A multiplier of 1.6 is applied to the average MPS salary point to estimate the cost of
RSS supplied by the consultants. (As at now, MPS point 38 = $81,975 per month and
MPS point 14 = $28,725 per month).
2. The consultants’ staff cost for the contract administration is calculated in accordance
with the existing consultancy agreement for the design and construction of 780CL. The
construction phase of the assignment will only be executed subject to Finance
Committee’s approval to upgrade 780CL to Category A.
3. We will only know the actual man-months and actual costs after completion of the
construction works.
Enclosure 2 Page 2
Remarks
The figures in this Enclosure are shown in constant prices to correlate with the MPS salary
point of the same year. The figures marked with # are shown in money-of-the-day prices in
paragraph 6 of the main paper.
Enclosure 3
780CL – Site formation and infrastructure works for public housing development at Wang Chau, Yuen Long
Breakdown of land acquisition cost $ million
(I) Estimated cost for land acquisition (resumption of
private land) 258.40
(II) Estimated cost for land clearance 47.54 (a) Ex-gratia allowances (EGAs) for domestic occupiers
(e.g. EGA for permitted occupiers of licensed structures and surveyed squatters affected by clearance and domestic removal allowance, etc.)
33.50
(b) Other ex-gratia allowances (e.g. crop compensation,
disturbance allowance for cultivators, EGA for miscellaneous permanent improvements to farms, EGA for shops, workshops, godowns, slipways, schools, churches and ornamental fish breeding undertakings, EGA for open-air/ outdoor business undertakings, EGA for clearance of graves, urns (“Kam Taps”) and shrines and EGA for “Tun Fu” ceremonial fees, etc.)
14.04
(III) Interest and Contingency Payment 5.20 Total 311.14
(say $311.10)
Note
The above estimated land acquisition cost is based on the prevailing rates as at April 2017.
Enclosure 4
780CL - Site formation and infrastructure works for public housing development at Wang Chau, Yuen Long Summary of “important tree” affected
Tree ref.
no. (1)
Species Measurements Amenity
Value (3) Form
Health
condition
Structural
conditionSuitability for Transplanting (4)
Conservation
Status (5)
Recommendation Department to
Provide Expert
Advice to
LandsD
Additional Remarks
Scientific Name Chinese NameHeight
(m)
DBH (2)
(mm)
Crown
Spread
(m)
(Good / Fair / Poor)
(High /
Medium /
Low)
Remarks
(Retain/transplant/fell)
T1118 Dimocarpus
longan
龍眼 9 1250 8 Fair Poor Fair Poor Low The tree trunk is restricted
by existing structures and
is leaning.
The tree has poor form and
structural conditions.
Due to the large size of the
tree, heavy pruning would
be required to facilitate
transplant which would
lead to permanent damage
to the form, health and
structure of the tree.
As the tree is mature, its
transplant survival rate
would be low. Therefore,
the tree is not considered
suitable for transplanting.
No Fell Agriculture,
Fisheries and
Conservation
Department
It is not practical to retain the tree as it
is located at the middle of the
proposed housing site, and there is a
large ground level difference of 2.3 m
between the current level
(+14.7 mPD) and the proposed level
(+17.0 mPD).
Enclosure 4 Page 2
Tree ref.
no. (1)
Species Measurements Amenity
Value (3) Form
Health
condition
Structural
conditionSuitability for Transplanting (4)
Conservation
Status (5)
Recommendation Department to
Provide Expert
Advice to
LandsD
Additional Remarks
Scientific Name Chinese NameHeight
(m)
DBH (2)
(mm)
Crown
Spread
(m)
(Good / Fair / Poor)
(High /
Medium /
Low)
Remarks
(Retain/transplant/fell)
T1125 Celtis sinensis 朴樹 11 1350 8 Fair Poor Fair Poor Low The tree is leaning and has
cracks on the trunk. The
tree has poor form and
structural conditions.
Due to the large size of the
tree, heavy pruning would
be required to facilitate
transplant which would
lead to permanent damage
to the form, health and
structure of the tree.
As the tree is mature, its
transplant survival rate
would be low. Therefore,
the tree is not considered
suitable for transplanting.
No Fell Agriculture,
Fisheries and
Conservation
Department
It is not practical to retain the tree as it
is located at the middle of the proposed
housing site, and there is a large ground
level difference of 2.0 m between the
current level (+16.0 mPD) and the
proposed level (+14.0 mPD).
T1303 Aquilaria
sinensis
土沉香 4 130 2 Fair Poor Poor Poor Low The tree is leaning. It has
co-dominant stems (a
structural defect), and is
heavily covered by vines.
The tree has poor form,
health and structural
conditions. Therefore, the
tree is not considered
suitable for transplanting.
Precious
and rare
species
Fell Agriculture,
Fisheries and
Conservation
Department
It is not practical to retain the tree as it
is located at the middle of the proposed
carriageway, and there is a large ground
level difference of 4.1 m between the
current level (+18.1 mPD) and the
proposed level (+14.0 mPD).
_______________
(1) The three trees are not in the Register of Old and Valuable Trees.
Enclosure 4 Page 3
(2) Diameter at Breast Height (DBH) of a tree refers to its trunk diameter at breast height (i.e. measured at 1.3 metres above ground level).
(3) Amenity value of the tree is assessed by its functional values for shade, shelter, screening, reduction of pollution and noise and also its fung shui significance, and classified into the following categories.
Good: important trees which should be retained by adjusting the design layout accordingly. Fair: trees that are desirable to be retained in order to create a pleasant environment, which includes healthy specimens of lesser importance than “Good” trees. Poor: trees that are dead, dying or potentially hazardous and should be removed. (4) Assessment has taken into account conditions of the tree at the time of survey (including health, structure, age and root conditions), site conditions (including topography and accessibility), and
intrinsic characters of tree species (survival rate after transplanting).
(5) Conservation status is based on the rarity and protection status of the species under relevant ordinances in Hong Kong, such as Rare and Precious Plants of Hong Kong, the International Union for Conservation of Nature Red List of Threatened Species and the Forests and Countryside Ordinance. Tree no. T1303 is Aquilaria sinensis, a precious or rare species. The species is protected under the Protection of Endangered Species of Animals and Plants Ordinance (Cap 586).