For information PWSCI(2011-12)7 NOTE FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE Annual Report on Capital Works Reserve Fund Block Allocations for the 2010-11 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 2010-11 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 2010-11 and the reasons for those items with variations greater than 15%; (b) a list of minor works projects which were implemented in 2010-11 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those which had had the works contracts awarded but had not started incurring spending, and those which were shelved or withdrawn (as compared with the indicative list in PWSC(2009-10)78); and (c) a list of new injection items (i.e. items not shown in the indicative list in PWSC(2009-10)78) approved in 2010-11, 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 2010-11 totalled $11,824.3 million. The actual expenditure was $10,343.7 million, which was 12.5% below the approved allocation. ------------------------- Financial Services and the Treasury Bureau October 2011 PWSCI(2011-12)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 – 7 Head 702 - Port and Airport Development ... Enclosure 2 8 Head 703 - Buildings ....................................... Enclosure 3 9 Subhead 3004GX Annex 3A 10 – 13 Subhead 3100GX Annex 3B 14 – 16 Subhead 3101GX Annex 3C 17 – 20 Head 704 - Drainage ....................................... Enclosure 4 21 Subhead 4100DX Annex 4A 22 – 26 Head 705 - Civil Engineering ......................... Enclosure 5 27 Subhead 5001BX Annex 5A 28 – 32 Subhead 5101CX Annex 5B 33 – 36 Subhead 5101DX Annex 5C 37 – 39 Head 706 - Highways ...................................... Enclosure 6 40 Subhead 6100TX Annex 6A 41 – 45 Head 707 - New Towns and Urban Area Development ................................. Enclosure 7 46 Subhead 7014CX Annex 7A 47 – 50 Subhead 7016CX Annex 7B 51 – 53 Subhead 7100CX Annex 7C 54 – 56 Head 708 - Capital Subventions and Major Systems and Equipment .............. Enclosure 8 57 Subhead 8100BX Annex 8A 58 – 60 Subhead 8100EX Annex 8B 61 – 64 Subhead 8100MX Annex 8C 65 – 68 Subhead 8100QX Annex 8D 69 – 71 Subhead 8001SX Annex 8E 72 – 74 Head 709 - Waterworks .................................. Enclosure 9 75 Subhead 9100WX Annex 9A 76 – 80 Head 710 - Computerisation .......................... Enclosure 10 81 Subhead A007GX Annex 10A 82 – 85 Head 711 - Housing ......................................... Enclosure 11 86 Subhead B100HX Annex 11A 87 – 88 Enclosure 1 to PWSCI(2011-12)7 2010-11 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 $1,482.7 million, 42.5% below the approved allocation of $2,577 million. 2. For Subhead 1004CA, the underspending was mainly due to failure to reach agreement on the compensation claims and 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(2011-12)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 2010-11 2010-11 2010-11 allocation $’000 $’000 Director of Lands 88,000 485 – 99.4% Part I : On-going key items as set out in PWSC(2009-10)78 Actual Project expenditure Project description estimate 2010-11 $’000 $’000 1. Resumption of Inverness Road squatter area, Kowloon City 101,000 — 2. Hong Kong Housing Society’s Urban Improvement 990,000 — 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 94,000 — public housing development and schools 4. Roads providing access to the development on Ma Wan 9,600 — Island, phase 5 stages 2 and 3 5. Resumption of Stonecutters Island lot no.1 for defence 25,000 — purposes Sub-total of Part I : — Page 2 Annex 1A to PWSCI(2011-12)7 Head 701 Subhead 1004CA – Continued Part II : New items which were implemented in 2010-11 as planned Actual Project expenditure Project description estimate 2010-11 $’000 $’000 1. West Island Line—loss of redevelopment potential arising 378,900 — from underground strata resumption Sub-total of Part II : — Part III : New items which were shelved or withdrawn in 2010-11 Nil Part IV : Injection items approved in 2010-11 Actual Project expenditure Project description estimate 2010-11 $’000 $’000 1. Resumption of Tung Chung Area 30, public housing 573,000 462 development, Tung Chung New Town Development, Lantau 2. Extension of Pok Oi Hospital phase 2, Yuen Long 52 23 Sub-total of Part IV : 485 Total for Subhead 1004CA : 485 Page 3 Annex 1B to PWSCI(2011-12)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 2010-11 2010-11 2010-11 allocation $’000 $’000 Director of Lands 2,489,000 1,482,176 – 40.5% Part I : On-going key items as set out in PWSC(2009-10)78 Actual Project expenditure Project description estimate 2010-11 $’000 $’000 1. Penny’s Bay reclamation 1,061,000 — 2. Central–Wan Chai Bypass and Island Eastern Corridor Link 253,000 — 3. Resumption of land for public housing near Tsing Lun Road 206,000 43,766 and Tsz Tin Road in Area 54, Tuen Mun 4. Castle Peak Road improvement between Sham Tseng and 54,000 — Ka Loon Tsuen, Tsuen Wan 5. Widening of Tolo Highway/Fanling Highway between 48,000 4,184 Island House Interchange and Fanling—stage 1 6. Deep Bay Link, and widening of Yuen Long Highway 642,000 2,030 between Lam Tei and Shap Pat Heung Interchange (section between Lam Tei and Tan Kwai Tsuen) 7. Resumption of land for Kau Hui development, engineering 176,000 23,321 works in Area 16, Yuen Long, phase 1A proposed road works 8. Tolo Harbour sewerage of unsewered areas stage 1 35,000 — phase 2C—village sewerage at San Tau Kok, Po Sam Pai and Lai Pek Shan San Tsuen, Tai Po (batch 3a) 9. Tolo Harbour sewerage of unsewered areas, stage I 36,000 12,044 phase 2C—village sewerage works at Tai Mei Tuk, Wong Chuk Tsuen, Lung Mei and Lo Tsz Tin, Tai Po Page 4 Annex 1B to PWSCI(2011-12)7 Head 701 Subhead 1100CA – Continued Actual Project expenditure Project description estimate 2010-11 $’000 $’000 10. Drainage improvement in Northern New Territories— 86,000 3,587 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 11. About 70 other items 92,317 Sub-total of Part I : 181,249 Part II : New items which were implemented in 2010-11 as planned Actual Project expenditure Project description estimate 2010-11 $’000 $’000 1. Hong Kong section of Guangzhou–Shenzhen–Hong Kong 1,843,500 1,197,116 Express Rail Link 2. Village removal for Chuk Yuen–Liantang/Heung Yuen Wai 88,500 5,597 boundary control point and associated road works 3. Chuk Yuen Village resite area 53,500 43,673 4. Upgrading of Tai Kong Po access road, Pat Heung, 23,000 12,545 Yuen Long 5. Cycle tracks connecting North-west New Territories with 2,000 6 North-east New Territories—section from Tuen Mun to Sheung Shui 6. Landslip preventive measures programme—Tin Ping Shan, 153 41 Fanling, slope no. 3SW-A/C62 Sub-total of Part II : 1,258,978 Page 5 Annex 1B to PWSCI(2011-12)7 Head 701 Subhead 1100CA – Continued Part III : New items which were shelved or withdrawn in 2010-11 Project Project description estimate $’000 1. Drainage improvement in Northern New Territories 88,000 package C (remaining works) 2. Widening of Tolo Highway/Fanling Highway between 84,000 Island House Interchange and Fanling—stage 2 3. Yuen Long and Kam Tin sewerage treatment upgrade— 48,000 upgrade of San Wai sewage treatment works 4.