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Note for Public Works Subcommittee of Finance Committee

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For information PWSCI(2009-10)9 NOTE FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE Annual Report on Capital Works Reserve Fund Block Allocations for the 2008-09 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 2008-09 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 2008-09 and the reasons for those items with variations greater than 15%; (b) a list of minor works projects which were implemented in 2008-09 as planned, including those which had had the works contracts awarded but had not started incurring spending, and those which were shelved or withdrawn (as compared with the indicative list in PWSC(2007-08)61); and (c) a list of new injection items (i.e. items not shown in the indicative list in PWSC(2007-08)61) approved in 2008-09. 2. In overall terms, the approved allocation for CWRF block allocations in 2008-09 totalled $9,273.1 million. The actual expenditure was $7,769.3 million. ------------------------- Financial Services and the Treasury Bureau October 2009 PWSCI(2009-10)9 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 – 21 Head 704 - Drainage ....................................... Enclosure 4 22 Subhead 4100DX Annex 4A 23 – 27 Head 705 - Civil Engineering ......................... Enclosure 5 28 Subhead 5001BX Annex 5A 29 – 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 Head 707 - New Towns and Urban Area Development ................................. Enclosure 7 47 Subhead 7014CX Annex 7A 48 – 51 Subhead 7016CX Annex 7B 52 – 54 Subhead 7100CX Annex 7C 55 – 58 Head 708 - Capital Subventions and Major Systems and Equipment .............. Enclosure 8 59 Subhead 8100BX Annex 8A 60 – 62 Subhead 8100EX Annex 8B 63 – 66 Subhead 8100MX Annex 8C 67 – 71 Subhead 8100QX Annex 8D 72 – 75 Subhead 8001SX Annex 8E 76 – 78 Head 709 - Waterworks .................................. Enclosure 9 79 Subhead 9100WX Annex 9A 80 – 84 Head 710 - Computerisation .......................... Enclosure 10 85 Subhead A007GX Annex 10A 86 – 90 Head 711 - Housing ......................................... Enclosure 11 91 Subhead B100HX Annex 11A 92 – 94 Enclosure 1 to PWSCI(2009-10)9 2008-09 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 $539.4 million, 69.8% below the approved allocation of $1,787.1 million. 2. For Subhead 1004CA, the underspending was mainly due to land title problems of a number of claimants and therefore the compensation payments to them have been held up. 3. For Subhead 1100CA, the underspending was mainly due to failure to reach agreement on the compensation claims in relation to the Penny’s Bay Reclamation Project 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(2009-10)9 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 2008-09 2008-09 2008-09 allocation $’000 $’000 Director of Lands 16,152 3,735 – 76.9% Part I : On-going key items as set out in PWSC(2007-08)61 Actual Project expenditure Project description estimate 2008-09 $’000 $’000 1. Resumption of Inverness Road Squatter Area, Kowloon 101,053 — City 2. Hong Kong Housing Society’s Urban Improvement 990,653 — Scheme at Ma Tau Kok Road, Pak Tai Street, Pau Chung Street, San Shan Road, Sui Lun Street and Wang Cheung Street 3. Redevelopment of the squatter area at Diamond Hill for 93,800 — public housing development and schools 4. Resumption of Stonecutters Island Lot no. 1 for defence 23,565 3,735 purpose 5. Resumption of Tung Chung Area 30, public housing 573,000 — development, Tung Chung new town development, Lantau Sub-total of Part I : 3,735 Page 2 Annex 1A to PWSCI(2009-10)9 Head 701 Subhead 1004CA - Continued Part II : New items which were implemented in 2008-09 as planned Nil Part III : New items which were shelved or withdrawn in 2008-09 Nil Part IV : Injection items approved in 2008-09 Actual Project expenditure Project description estimate 2008-09 $’000 $’000 1. Surrender of land for implementation of Blue House Cluster — — Project 1 Sub-total of Part IV : — Total for Subhead 1004CA : 3,735 ——————————————————————————————————— 1 $1 was incurred for the voluntary surrender of a private lot by the Hong Kong Housing Society for implementation of the project. Page 3 Annex 1B to PWSCI(2009-10)9 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 2008-09 2008-09 2008-09 allocation $’000 $’000 Director of Lands 1,770,953 535,643 – 69.8% Part I : On-going key items as set out in PWSC(2007-08)61 Actual Project expenditure Project description estimate 2008-09 $’000 $’000 1. Penny’s Bay Reclamation 1,061,000 — 2. Resumption of land for Tai Po development—formation 127,375 89,281 and servicing of Areas 12 (part) and 39, phase 2A 3. Drainage improvement in the Northern New Territories— 87,250 56,564 package C (phase 2)—drainage improvement works at Tai Po Tin and Ping Che of Ta Kwu Ling and Man Uk Pin and Lin Ma Hang of Sha Tau Kok 4. Improvement to Island East Corridor, section between 40,100 36,480 North Point Interchange and Sai Wan Ho 5. Resumption of land for drainage improvement in Northern 83,100 19,571 New Territories package C (phase 1)—drainage improvement works at Lung Yeuk Tau, Kwan Tei, Tan Shan River and Leng Tsai, Fanling 6. Yuen Long Bypass Floodway, Yuen Long 142,691 2,220 7. Construction of roads and drains to serve the housing 62,859 — development in Area 56, Tuen Mun 8. Deep Bay Link, and widening of Yuen Long Highway 642,525 3,271 between Lam Tei and Shap Pat Heung Interchange (section between Lam Tei and Tan Kwai Tsuen) 9. Yuen Long South Eastern extension—proposed road works 231,912 26,394 in Area 14 Page 4 Annex 1B to PWSCI(2009-10)9 Head 701 Subhead 1100CA - Continued Actual Project expenditure Project description estimate 2008-09 $’000 $’000 10. Drainage improvement in Tai Po—road works ancillary to 45,000 24,105 the proposed river improvement works in Upper Lam Tsuen River, She Shan River and Upper Tai Po River 11. About 90 other items 189,820 Sub-total of Part I : 447,706 Part II : New items which were implemented in 2008-09 as planned Actual Project expenditure Project description estimate 2008-09 $’000 $’000 1. Drainage improvement in Tai Po drainage improvement 26,151 — works in Shuen Wan 2. Resumption of land for drainage improvement in Northern 22,341 15,621 New Territories, package B—drainage improvement works in Ma Tso Lung, Ying Pun and Shek Tsai Leng, Sheung Shui, New Territories 3. Drainage improvement in Northern New Territories, 14,835 9,352 package B—drainage improvement works in Ma Tso Lung, Ying Pun and Shek Tsai Leng, Sheung Shui, New Territories—ancillary road works 4. Construction of access road and car park at Chai Kek and 11,200 4,008 Wo Liu, Tai Po 5. Resumption of land for constructing two primary schools in 10,333 7,911 So Kwun Wat, Area 55, Tuen Mun, New Territories 6. Construction of access road at Chim Uk, Tai Po (stage 1) 6,000 — 7. Improvement works at Lung Ma Road and its junction with 5,980 2,605 Sha Tau Kok Road 8. Port Shelter sewerage, stage 3—Mang Kung Uk sewerage 2,905 636 9. Improvement to Lo Wu Station Road 1,815 212 Page 5 Annex 1B to PWSCI(2009-10)9 Head 701 Subhead 1100CA - Continued Actual Project expenditure Project description estimate 2008-09 $’000 $’000 10. Ping Ha Road improvement—remaining works (Ha Tsuen 245 35 section) 11. Ten other items 996 Sub-total of Part II : 41,376 Part III : New items which were shelved or withdrawn in 2008-09 Project Project description estimate $’000 1.
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