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Note for Public Works Subcommittee of Finance Committee

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Note for Public Works Subcommittee of Finance Committee For information PWSCI(2020-21)7 NOTE FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE Annual Report on Capital Works Reserve Fund Block Allocations for the 2019-20 Financial Year We have been compiling exception reports on block allocations under the Capital Works Reserve Fund (CWRF) to account for the difference between the actual programme and the indicative one which we presented to Members for approving the funding allocation. This report covers the 2019-20 financial year. Encls. 1 to 11 Enclosures 1 to 11 provide details on each block allocation under the 11 CWRF Heads of Expenditure and include – (a) a comparison of the approved provision and actual expenditure in 2019-20 and the reasons for those items with variations greater than 15%; (b) a list of minor works projects which were implemented in 2019-20 as planned, including those which had had the works contracts awarded but had not started incurring spending1, and those which were shelved or withdrawn (as compared with the indicative list in PWSC(2018-19)352; and (c) a list of new injection items (i.e. items not shown in the indicative list in PWSC(2018-19)35) approved in 2019-20, including those which had had the works contracts awarded but had not started incurring spending. 2. In overall terms, the approved allocation for CWRF block allocations in 2019-20 totalled $ 15,240.81 million3. The actual expenditure was $12,085.54 million, which was 20.7% below the approved allocation. The approved and actual expenditures of all subheads in 2019-20 are set out in the following table – /Subhead ..... ——————————————————————————————————— 1 Owing to reasons such as change in project programme, or failure to reach agreement on the compensation claims for land compensation payments. 2 Project estimates of some items deviate from those shown on PWSC(2018-19)35. Those shown on the current report reflect the project estimates approved. 3 The Finance Committee increased the 2019-20 approved allocation of Subhead 3101GX in March 2020 by $165 million. The Government increased the 2019-20 approved allocation of Subheads 3101GX, 4100DX, 5001BX, 5101CX, 6100TX, 7017CX and 9100WX in November 2019 by $79.81 million in total and Subhead 3004GX by $15 million in March 2020 under delegated authority to meet the increased expenditure. The total approved allocation for 2019-20 was therefore increased by $259.81 million from $14,981 million to $15,240.81 million. PWSCI(2020-21)7 Page 2 Subhead Allocation Actual Expenditure 2019-20 2019-20 ($ million) ($ million) Head 701 1004CA 12.21 0.99 1100CA 3,135.99 261.34 Sub-total: 3,148.20 262.33 Head 703 3004GX 2,239.10 2,238.66 3100GX 111.91 111.59 3101GX 1,112.99 1,081.68 Sub-total: 3,464.00 3,431.93 Head 704 4100DX 591.84 591.84 Sub-total: 591.84 591.84 Head 705 5001BX 1,028.45 1,028.41 5101CX 315.00 313.40 5101DX 113.02 78.62 Sub-total: 1,456.47 1,420.43 Head 706 6100TX 750.00 746.12 6101TX 650.00 648.22 Sub-total: 1,400.00 1,394.34 Head 707 7014CX 140.00 139.84 7016CX 360.00 358.27 7017CX 0.75 0.70 7100CX 173.28 167.52 Sub-total: 674.03 666.33 Head 708 8100BX 4.20 3.28 8100EX 762.66 744.20 8100QX 809.28 806.16 8001SX 210.66 110.78 Sub-total: 1,786.80 1,664.42 Head 709 9100WX 1,455.27 1,451.17 Sub-total: 1,455.27 1,451.17 Head 710 A007GX 1,120.00 1,108.04 Sub-total: 1,120.00 1,108.04 Head 711 B100HX 144.20 94.73 Sub-total: 144.20 94.73 Total: 15,240.81 12,085.564 ------------------------- Financial Services and the Treasury Bureau November 2020 ——————————————————————————————————— 4 It does not add up to $12,085.54 million due to rounding. PWSCI(2020-21)7 Index of Enclosures and Annexes Head/Subhead Reference Page Head 701 - Land Acquisition ......................... Enclosure 1 1 Subhead 1004CA Annex 1A 2 – 3 Subhead 1100CA Annex 1B 4 – 8 Head 702 - Port and Airport Development ... Enclosure 2 9 Head 703 - Buildings ....................................... Enclosure 3 10 Subhead 3004GX Annex 3A 11 – 14 Subhead 3100GX Annex 3B 15 – 17 Subhead 3101GX Annex 3C 18 – 22 Head 704 - Drainage ....................................... Enclosure 4 23 Subhead 4100DX Annex 4 24 – 28 Head 705 - Civil Engineering ......................... Enclosure 5 29 Subhead 5001BX Annex 5A 30 – 32 Subhead 5101CX Annex 5B 33 – 37 Subhead 5101DX Annex 5C 38 – 40 Head 706 - Highways ...................................... Enclosure 6 41 Subhead 6100TX Annex 6A 42 – 46 Subhead 6101TX Annex 6B 47 – 49 Head 707 - New Towns and Urban Area Development ................................. Enclosure 7 50 Subhead 7014CX Annex 7A 51 – 55 Subhead 7016CX Annex 7B 56 – 58 Subhead 7017CX Annex 7C 59 – 60 Subhead 7100CX Annex 7D 61 – 64 Head 708 - Capital Subventions and Major Systems and Equipment .............. Enclosure 8 65 Subhead 8100BX Annex 8A 66 – 68 Subhead 8100EX Annex 8B 69 – 71 Subhead 8100QX Annex 8C 72 – 75 Subhead 8001SX Annex 8D 76 – 78 Head 709 - Waterworks .................................. Enclosure 9 79 Subhead 9100WX Annex 9 80 – 84 Head 710 - Computerisation .......................... Enclosure 10 85 Subhead A007GX Annex 10 86 – 90 Head 711 - Housing ......................................... Enclosure 11 91 Subhead B100HX Annex 11 92 – 95 Enclosure 1 to PWSCI(2020-21)7 2019-20 Actual Expenditure for the Block Allocations under Head 701 – Land Acquisition There are two block allocations under Head 701, namely, Subheads 1004CA and 1100CA. The actual expenditure was $262.33 million, 91.7% below the approved allocation of $3,148.20 million in 2019-20. 2. For Subhead 1004CA, the underspending was mainly due to failure to reach agreement on the compensation claims and land title issues of the claimants. 3. For Subhead 1100CA, the underspending was mainly due to lower cashflow requirements and slippage of a number of projects. 4. Details on the key expenditure items for each of the above subheads are set out at Annexes 1A and 1B respectively. Page 1 Annex 1A to PWSCI(2020-21)7 Capital Works Reserve Fund Head 701 Subhead 1004CA Compensation for surrenders and resumptions: miscellaneous Ambit : Payment of compensation (including ex-gratia allowances) for the acquisition, surrender and clearance of all land and property reverting to the Government, including the costs of resuming and clearing sites in connection with the implementation of statutory outline zoning plans; for projects to be undertaken by non-government or quasi-government bodies, including the Hong Kong Housing Society and the Hong Kong Housing Authority; and for projects undertaken under the Foreshore and Sea-bed (Reclamations) Ordinance and not covered by any other funding arrangements. Actual Percentage change as Controlling Allocation Expenditure compared with the Officer 2019-20 2019-20 2019-20 allocation $ million $ million Director of Lands 12.21 0.99 –91.9% Part I : On-going key items as set out in PWSC(2018-19)35 Actual Project expenditure Project description estimate 2019-20 $ million $ million 1. Hong Kong Housing Society’s Urban Improvement 994.34 — Scheme at Ma Tau Kok Road, Pak Tai Street, Pau Chung Street, San Shan Road, Sui Lun Street and Wang Cheung Street 2. Resumption of Inverness Road squatter area, Kowloon City 91.70 — 3. Redevelopment of the squatter area at Diamond Hill for 74.82 — public housing development and schools 4. West Island Line—loss of redevelopment potential arising 3.31 — from underground strata resumption 5. Resumption of land for the construction of estate road, 3.19 0.99 drains and sewers of the public housing development at Queen’s Hill, Fanling Sub-total of Part I : 0.99 Page 2 Annex 1A to PWSCI(2020-21)7 Head 701 Subhead 1004CA – Continued Part II : New items which were implemented in 2019-20 as planned Nil Part III : New items which were shelved or withdrawn in 2019-20 Nil Part IV : Injection items approved in 2019-20 Actual Project expenditure Project description estimate 2019-20 $ million $ million 1. Surrender of land of Chi Yun School Site — —1 Sub-total of Part IV : — Total for Subhead 1004CA : 0.99 ——————————————————————————————————— 1 $1 was incurred for the voluntary surrender of land of Chi Yun School site by The Lotus Association of Hong Kong. Page 3 Annex 1B to PWSCI(2020-21)7 Capital Works Reserve Fund Head 701 Subhead 1100CA Compensation and ex-gratia allowances in respect of projects in the Public Works Programme Ambit : All land acquisition costs, other than direct works costs, and all ex-gratia allowances in respect of projects in the Public Works Programme. Actual Percentage change as Controlling Allocation Expenditure compared with the Officer 2019-20 2019-20 2019-20 allocation $ million $ million Director of Lands 3,135.99 261.34 – 91.7% Part I : On-going key items as set out in PWSC(2018-19)35 Actual Project expenditure Project description estimate 2019-20 $ million $ million 1. Liantang/Heung Yuen Wai Boundary Control Point and 2,191.06 13.78 associated works (connecting road) 2. Hong Kong section of Guangzhou-Shenzhen-Hong Kong 1,731.48 8.68 Express Rail Link 3. Penny’s Bay reclamation 1,061.00 — 4. Central-Wanchai Bypass and Island Eastern Corridor Link 345.60 — 5. Resumption of land for development at Wang Chau, 214.73 22.27 Yuen Long 6. Yuen Long and Kam Tin sewerage treatment 166.84 63.74 upgrade—upgrading of San Wai sewage treatment works 7. Road works—site formation and infrastructure works for 96.41 16.38 development at Wang Chau, Yuen Long 8. Dualling of Hiram’s Highway between Clear Water Bay 56.47 0.92 Road and Marina Cove and improvement to local access to Ho Chung 9.
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