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PWSC(2015-16)61 on 16 March 2016

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PWSC(2015-16)61 on 16 March 2016 For discussion PWSC(2015-16)61 on 16 March 2016 ITEM FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE HEAD 707 – NEW TOWNS AND URBAN AREA DEVELOPMENT Civil Engineering – Land development 469CL – Kai Tak development – infrastructure at north apron area of Kai Tak Airport Members are invited to recommend to the Finance Committee – (a) the upgrading of part of 469CL, entitled “Kai Tak development – stages 3B and 5A infrastructure works at former north apron area”, to Category A at an estimated cost of $2,152.8 million in money-of-the-day prices; and (b) the retention of the remainder of 469CL in Category B. PROBLEM We need to provide essential infrastructure to serve the commercial and residential developments, comprehensive development areas, government, institution or community (G/IC) facilities, and other specified uses at the former north apron area of Kai Tak Development (KTD). /PROPOSAL ….. PWSC(2015-16)61 Page 2 PROPOSAL 2. The Director of Civil Engineering and Development, with the support of the Secretary for Development, proposes to upgrade part of 469CL to Category A at an estimated cost of $2,152.8 million in money-of-the-day (MOD) prices for the construction of stages 3B and 5A infrastructure works to serve the developments at the former north apron area of KTD. PROJECT SCOPE AND NATURE 3. The part of 469CL which we propose to upgrade to Category A (the proposed works) covers two packages of works, namely stages 3B and 5A infrastructure, at KTD. 4. Stage 3B infrastructure works comprise the following major items at the former north apron area to the east of Kai Tak River and near San Po Kong area – (a) construction of a section of dual two-lane Road L2 of about 320 metres (m) long connecting Shing Kai Road with Concorde Road, and a pair of single-lane slip roads of about 650 m long linking the eastbound Prince Edward Road East (PERE) with San Po Kong; (b) construction of an elevated landscaped walkway LW4 of about 290 m long across PERE connecting San Po Kong and KTD; (c) demolition of existing flyover K9 in San Po Kong across PERE; (d) construction of a pedestrian subway SW4 of about 180 m long across PERE, Kwun Tong Bypass and Shing Kai Road connecting Choi Hung Estate and KTD; (e) road modification works in San Po Kong area; (f) construction of associated footpaths, street lighting, traffic aids, drainage, sewerage, water mains, landscaping and ancillary works; and (g) implementation of environmental mitigation measures and related environmental monitoring and audit (EM&A) programme for the works mentioned in paragraph 4(a) to (f) above. /The ….. PWSC(2015-16)61 Page 3 The plans, cross-sections and artist’s impression showing the proposed stage 3B infrastructure works are at Sheet 1 of Enclosure 1. 5. Stage 5A infrastructure works comprise the following major items at the former north apron area to the west of Kai Tak River and near Kowloon City area – (a) construction of a single two-lane Road L7 of about 140 m long and a section of dual two-lane Road D1 of about 470 m long connecting with Concorde Road; (b) construction of a single-lane slip road S15 of about 160 m long linking the proposed Road D1 with existing flyover K72 for connection with PERE eastbound; (c) construction of a pedestrian subway SW6 of about 120 m long across PERE connecting the future preservation corridor for the Lung Tsun Stone Bridge (LTSB) remnants in KTD and Shek Ku Lung Road Playground (SKLRP); (d) construction of associated footpaths, street lighting, traffic aids, drainage including about 830 m long box culverts, sewerage, water mains, landscaping and ancillary works; and (e) implementation of environmental mitigation measures and related EM&A programme for the works mentioned in paragraph 5(a) to (d) above. The plans, cross-sections and artist impression showing the proposed stage 5A infrastructure works are at Sheet 2 of Enclosure 1. 6. Subject to funding approval of the Finance Committee (FC) by mid-2016, we plan to commence the proposed works in September 2016 for substantial completion by phases by end 2020. To meet the programme, we plan to invite tender in mid-2016, but the tender will only be awarded upon obtaining FC's funding approval. /7.….. PWSC(2015-16)61 Page 4 7. We will retain the remainder of 469CL in Category B, which mainly covers construction of the infrastructure to serve the remaining developments at the former north apron area of KTD 1. Funding for the remainder of 469CL will be made by phases to dovetail with the implementation programme of KTD. JUSTIFICATION 8. According to the approved Kai Tak Outline Zoning Plan, the former north apron area will become the city centre of KTD, at which a well-mixed residential, commercial, office and G/IC developments will be provided. The proposed works form part of the essential infrastructure to serve continued developments at the former north apron area particularly those near the Kowloon City and San Po Kong areas. 9. The proposed works will enhance both vehicular and pedestrian connectivity of KTD with adjoining areas including Kowloon City, San Po Kong and Choi Hung Estate, through an integrated network of carriageways, flyover, subways, and elevated landscaped walkway. For example, the proposed Subway SW6 across PERE will link the preservation corridor for LTSB remnants in KTD with SKLRP to promote better integration of public space in the area. The proposed subway will be partly located within SKLRP but will not affect the existing facilities of SKLRP. 10. Upon provision of a new vehicular underpass across PERE connecting KTD and San Po Kong to be completed by mid-2017 under the ongoing stage 3A infrastructure works at the former north apron area and a pair of slip roads linking the eastbound PERE under paragraph 4(a) of the proposed works, the existing flyover K9 is no longer required and will be demolished to release the land being occupied for development. FINANCIAL IMPLICATIONS 11. We estimate the cost of the proposed works to be $2,152.8 million in MOD prices (please see paragraph 13 below), broken down as follows – /$ million….. 1 The remaining developments at the former north apron area in KTD mainly include residential and commercial developments, and public facilities. PWSC(2015-16)61 Page 5 $ million (a) Road works 355.8 (b) Elevated landscaped walkway 229.8 (c) Pedestrian subways 392.5 (d) Drainage, sewerage, water 349.0 mains and ancillary works (e) Associated works including 70.0 landscaping works (f) Environmental mitigation 22.3 measures and EM&A programme (g) Consultants’ fees for 13.3 (i) contract administration 5.2 (ii) management of resident 4.1 site staff (RSS) (iii) independent 4.0 environmental checker services 2 (h) Remuneration of RSS 139.6 (i) Contingencies 157.2 Sub-total 1,729.5 (in September 2015 prices) (j) Provision for price adjustment 423.3 Total 2,152.8 (in MOD prices) 12. We have engaged consultants to carry out the detailed design of the proposed works. 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 estimate for consultants’ fees and RSS costs by man-months is at Enclosure 2. /13.….. 2 As part of the EM&A programme for the proposed works, we will commission consultants to provide independent environmental checker services to review and audit the environmental monitoring works and results for the proposed works. PWSC(2015-16)61 Page 6 13. Subject to funding approval, we will phase the expenditure as follows – Price $ million adjustment $ million Year (Sept 2015) factor (MOD) 2016 – 2017 78.9 1.05775 83.5 2017 – 2018 315.7 1.12122 354.0 2018 – 2019 409.2 1.18849 486.3 2019 – 2020 430.8 1.25980 542.7 2020 – 2021 237.5 1.33539 317.2 2021 – 2022 152.5 1.40549 214.3 2022 – 2023 104.9 1.47577 154.8 1,729.5 2,152.8 14. 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 2016 to 2023. We will deliver the proposed works under two re-measurement contracts because the quantities of works involved will vary depending on actual ground conditions. The contracts will provide for price adjustment. 15. We estimate the annual recurrent expenditure arising from the proposed works to be about $11 million. The cost arising therefrom will be taken into consideration when determining the affected fees and charges as appropriate in future. /PUBLIC ….. PWSC(2015-16)61 Page 7 PUBLIC CONSULTATION 16. For the proposed works, we consulted the Kowloon City District Council, the Wong Tai Sin District Council and the Kwun Tong District Council, with details as listed below – Proposed Council or Committee Date of Outcome infrastructure works Consulted Consultation (a) Kowloon City District Council Stage All except Housing and 16 February Generally 3B Subway SW4 Infrastructure 2012 supportive Subway SW4 Committee 23 July 2015 Stage 5A 7 November 2013 (b) Wong Tai Sin District Council Stage All except Full Council 13 March 2012 Generally 3B Subway SW4 supportive Subway SW4 Traffic and Transport 28 July 2015 Committee (T&TC) Stage 5A Full Council 5 November 2013 (c) Kwun Tong District Council Stage All except Full Council 6 March 2012 Generally 3B Subway SW4 supportive Subway SW4 Working Group on 23 July 2015 Universal Accessibility Projects under T&TC Stage 5A Full Council 12 November No 2013 (by objections circulation) received 17.
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