For information PWSCI(2013-14)6 NOTE FOR PUBLIC WORKS SUBCOMMITTEE OF FINANCE COMMITTEE Annual Report on Capital Works Reserve Fund Block Allocations for the 2012-13 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 2012-13 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 2012-13 and the reasons for those items with variations greater than 15%; (b) a list of minor works projects which were implemented in 2012-13 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those which had had the works contracts awarded but had not started incurring spending, and those which were shelved or withdrawn (as compared with the indicative list in PWSC(2011-12)33); and (c) a list of new injection items (i.e. items not shown in the indicative list in PWSC(2011-12)33) approved in 2012-13, 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 2012-13 totalled $11,557.8 million1. The actual expenditure was $10,400.7 million, which was 10% below the approved allocation. ------------------------- Financial Services and the Treasury Bureau October 2013 ——————————————————————————————————— 1 The Finance Committee approved in January 2013 the creation of a new block allocation Subhead 6101TX and an allocation of $2.4 million for 2012-13. The Administration increased the 2012-13 approved allocation of Subheads 3004GX, 4100DX, 8100MX and 9100WX between November 2012 and March 2013 by $43.2 million under delegated authority to meet the increased expenditure. The total approved allocation for 2012-13 was therefore increased by $45.6 million from $11,512.2 million to $11,557.8 million. PWSCI(2013-14)6 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 – 31 Subhead 5101CX Annex 5B 32 – 36 Subhead 5101DX Annex 5C 37 – 39 Head 706 - Highways ...................................... Enclosure 6 40 Subhead 6100TX Annex 6A 41 – 45 Subhead 6101TX Annex 6B 46 – 47 Head 707 - New Towns and Urban Area Development ................................. Enclosure 7 48 Subhead 7014CX Annex 7A 49 – 52 Subhead 7016CX Annex 7B 53 – 55 Subhead 7100CX Annex 7C 56 – 59 Head 708 - Capital Subventions and Major Systems and Equipment .............. Enclosure 8 60 Subhead 8100BX Annex 8A 61 – 63 Subhead 8100EX Annex 8B 64 – 67 Subhead 8100MX Annex 8C 68 – 72 Subhead 8100QX Annex 8D 73 – 76 Subhead 8001SX Annex 8E 77 – 79 Head 709 - Waterworks .................................. Enclosure 9 80 Subhead 9100WX Annex 9A 81 – 85 Head 710 - Computerisation .......................... Enclosure 10 86 Subhead A007GX Annex 10A 87 – 91 Head 711 - Housing ......................................... Enclosure 11 92 Subhead B100HX Annex 11A 93 – 95 Enclosure 1 to PWSCI(2013-14)6 2012-13 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 $1,783.2 million, 32.3% below the approved allocation of $2,632.4 million in 2012-13. 2. For Subhead 1004CA, the underspending was mainly due to failure to reach agreement on the compensation claims in relation to the project of West Island Line – loss of redevelopment potential arising from underground strata resumption. 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. 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(2013-14)6 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 2012-13 2012-13 2012-13 allocation $’000 $’000 Director of Lands 31,500 3,255 – 89.7% Part I : On-going key items as set out in PWSC(2011-12)33 Actual Project expenditure Project description estimate 2012-13 $’000 $’000 1. Hong Kong Housing Society’s Urban Improvement Scheme 990,000 3,255 at Ma Tau Kok Road, Pak Tai Street, Pau Chung Street, San Shan Road, Sui Lun Street and Wang Cheung Street 2. West Island Line—loss of redevelopment potential arising 378,000 — from underground strata resumption Sub-total of Part I : 3,255 Part II : New items which were implemented in 2012-13 as planned Nil Part III : New items which were shelved or withdrawn in 2012-13 Nil Page 2 Annex 1A to PWSCI(2013-14)6 Head 701 Subhead 1004CA – Continued Part IV : Injection items approved in 2012-13 Actual Project expenditure Project description estimate 2012-13 $’000 $’000 1. Consideration for surrender of Short Term Tenancy no. — —1 KX1747 to facilitate land exchange proposal in connection with Ocean Terminal 2. Consideration for surrender of no. 6-28 Chai Wan Kok — —1 Street, Tsuen Wan—TWIL 29 S.B ss.2 and TWIL 34 S.A ss.2 S.B for street widening Sub-total of Part IV : — Total for Subhead 1004CA : 3,255 ——————————————————————————————————— 1 $1 was incurred being the consideration of the surrender agreement. Page 3 Annex 1B to PWSCI(2013-14)6 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 2012-13 2012-13 2012-13 allocation $’000 $’000 Director of Lands 2,600,850 1,779,941 – 31.6% Part I : On-going key items as set out in PWSC(2011-12)33 Actual Project expenditure Project description estimate 2012-13 $’000 $’000 1. Hong Kong section of Guangzhou–Shenzhen–Hong Kong 2,018,000 13,989 Express Rail Link 2. Penny’s Bay reclamation 1,061,000 — 3. Deep Bay Link, and widening of Yuen Long Highway 642,500 9 between Lam Tei and Shap Pat Heung Interchange (section between Lam Tei and Tan Kwai Tsuen) 4. Central–Wan Chai Bypass and Island Eastern Corridor Link 253,000 387 5. Village removal for Chuk Yuen–Liantang/Heung Yuen Wai 94,500 2,743 boundary control point and associated road works 6. Wan Chai development phase 2, engineering works 94,500 — 7. Improvement and extension of Kam Pok Road, Yuen Long 54,700 9,253 8. Formation, roads and drains in Area 54, Tuen Mun, phase 2 40,000 — package 1B—construction of sewage pumping station and associated rising mains 9. Construction of secondary boundary fence and new 25,900 12,766 sections of primary boundary fence and boundary patrol road—sections 3C from Pak Fu Shan to Lin Ma Hang Village 10. Lam Tsuen Valley sewerage, package 2C 21,300 8,452 Page 4 Annex 1B to PWSCI(2013-14)6 Head 701 Subhead 1100CA – Continued Actual Project expenditure Project description estimate 2012-13 $’000 $’000 11. About 60 other items 35,884 Sub-total of Part I : 83,483 Part II : New items which were implemented in 2012-13 as planned Actual Project expenditure Project description estimate 2012-13 $’000 $’000 1. Liantang/Heung Yuen Wai boundary control point and 2,087,200 766,279 associated works (connecting road) 2. Liantang/Heung Yuen Wai boundary control point and 1,367,000 506,908 associated works (site formation and civil works) 3. Regulation of Shenzhen River stage 4—ancillary road 415,200 267,270 works 4. Regulation of Shenzhen River stage 4—river channel works 105,000 49,277 5. Hong Kong–Zhuhai–Macao Bridge Hong Kong Link Road 99,630 — 6. Hong Kong–Zhuhai–Macao Bridge Hong Kong Boundary 83,220 — Crossing Facilities 7. Development of a bathing beach at Lung Mei, Tai Po 34,061 18,888 8. Resumption of land for development of a bathing beach at 15,849 1,894 Lung Mei, Tai Po 9. Improvement of Kam Pok Road (Man Yuen Chuen section) 12,217 280 10. Yuen Long and Kam Tin sewerage stage 3—village 2,707 989 sewerage at Tai Tong Tsuen, Yuen Long 11. About ten other items 221 Sub-total of Part II : 1,612,006 Page 5 Annex 1B to PWSCI(2013-14)6 Head 701 Subhead 1100CA – Continued Part III : New items which were shelved or withdrawn in 2012-13 Project Project description estimate $’000 1.