| News
Stories: |  |
Click-on these
handy "jump links" to quickly access the news item
you're looking
for. 1.
Statement on ArchSD's re-engineering 2.
LCQ10: Construction works of new school premises of
secondary and primary schools 3.
LCQ2:Road network of Sai Kung able to cope with traffic
demand 4.
$10b boost for urban renewal projects 5.
Go-ahead for Swire project 6.
Chance to salvage Tamar hope
1. Statement on ArchSD's re-engineering In
response to press enquiries on criticisms made by the staff associations of Architectural
Services Department (ArchSD) on the quality and standard of outsourced works and
their gathering held today (7 May) to protest against increased outsourcing, a
Government spokesman said: "The Government fully appreciates the professional
competency and achievements of ArchSD over the years, and understands the staff's
concerns on the quality and standard of works as a result of increased outsourcing.
The increased outsourcing is an integral part of the re-engineering and outsourcing
programme of ArchSD, under which the Department will assume the following new
strategic roles !G (a) to strengthen its professional role as Government's corporate
advisor on public building development and maintenance matters; (b) to expand
its role in working with the industry to improve the design and maintenance of
public buildings and in promoting higher standards in construction, site management
and safety; and (c) to concentrate more on the project management and supervisory
functions in delivering and maintaining public building projects. The decision
for re-engineering of the department is made after thorough consideration of the
future roles and functions of ArchSD, the needs of the community for more public
projects, the aspirations of the private sector to have more opportunities to
take part in public projects, their capacity and capability in handling government
projects, the recommendations of the management consultants etc. It is also in
line with Government's policy objective of enhancing service quality and raising
public sector productivity through increased partnership between the public and
the private sectors. There is a need for increased outsourcing of ArchSD's building
projects and maintenance activities to enable it to discharge its new strategic
roles. Further outsourcing in ArchSD will provide greater room for the private
sector to develop its pool of expertise and resources through more active participation
in government building and maintenance works. The additional work outsourced will
also encourage the private sector to further invest in emerging technologies to
the benefit of the community. This is conducive to the overall cost-effectiveness
of outsourcing in the long run. The quality of outsourced works will not be compromised
under any circumstances. ArchSD will continue to oversee and upkeep the overall
standard of works and will ensure the quality of works outsourced through appropriate
service procurement arrangements, effective supervision and project management,
as well as adoption of quality assurance measures and sound performance management.
ArchSD will work closely with the user departments to ensure the successful implementation
of the outsourcing of building and maintenance projects. Detailed implementation
plans, guidelines and codes of practices will be issued. Briefings, seminars,
training and other forms of assistance will also be arranged to equip user departments
with the necessary expertise to facilitate their interaction with consultants
and contractors. ArchSD will retain its role as the Government's corporate adviser
on building development and maintenance matters, and will continue to provide
professional advice to the user departments on professional matters in future.
The Government has abundant experience in engaging the private sector in the delivery
of various types of works projects. Other Works Departments, e.g. Territory Development
Department, Highways Department, have already outsourced their works up to 90%
of the total project value on average without compromising the standard or quality
of works while achieving cost-effectiveness. A business review on ArchSD by consultants
in 2001 had found that the costs of delivering new projects by in-house resources
or by outsourcing were broadly comparable. If the costs of ArchSD's monitoring
of consultants were included, the professional services costs were slightly higher
in those projects where some of the professional services were outsourced. The
consultants have pointed out that these average figures are contrary to the common
experience elsewhere that outsourcing will generally give rise to reduced or at
least no higher costs. The consultants concluded that the available data did not,
therefore, suggest strongly whether outsourcing or in-house provision was always
more cost-effective. The Government has undertaken that there will be no forced
redundancy as a result of this outsourcing programme. The staff should therefore
have no concern on job security. The Government has also undertaken that staff
will be consulted extensively on the re-engineering programme. Staff communication
channels have been set up to facilitate the consultation process. Suitable training,
retraining and redeployment will be offered to those staff who will be affected
by the re-engineering programme. An inter-departmental working group has been
set up, comprising relevant Heads of Grades and Departments of affected staff,
to work out the detailed staffing arrangements and related issues. The Government
will adopt a flexible and step-by-step approach and will conduct regular reviews
on the implementation of the programme. ArchSD will continue to maintain close
communications with staff and consult them on matters relating to the programme.
We look forward to the continued support and cooperation of staff in working together
with the management of ArchSD in meeting the new challenges." [Source:
Works Bureau, 7 May 2002] 2.
LCQ10: Construction works of new school premises of secondary and primary schools
Following is a question by the Hon Cheung Man-kwong and a written reply by the
Secretary for Education and Manpower, Mrs Fanny Law, in the Legislative Council
today (May 8): Question: Regarding slippage in the construction works of new school
premises of government and aided secondary and primary schools, will the Government
inform this Council: (a) of the schools whose new premises were completed in accordance
with the planning schedule and put to use in September of that year when the new
school year began, and those whose new premises failed to meet the schedule, in
each of the past five years, with a breakdown by school districts and the profile
of slippage for less than three, six, nine and 12 months or more than one year
respectively; (b) of the schools whose new premises will be completed this year
in accordance with the planning schedule and put to use in September of this year
when the new school year begins, with a breakdown by school districts; and the
schools the construction works of whose new premises are expected to be delayed,
as well as the length of slippage; (c) of all the causes of the slippage in the
construction works; (d) as delays in construction works of new school premises
have often occurred over the years and caused confusion in school operations,
such as upsetting the plans for their conversion into whole-day schooling, causing
new schools to defer their first school day or to have to use the premises of
other schools temporarily, whether the Education Department has provided any support
to the affected schools; if so, of the details; if not, the reasons for that;
and (e) of the long term measures to solve the problems of frequent slippage in
the construction works on new school premises? Reply: Madam President, To ensure
that new school premises are completed on schedule, relevant government departments
have all along been closely monitoring the progress of school building programmes.
We have set up a School Building Programme Review Committee, an inter-departmental
committee comprising representatives from the Education Department (ED), the Architectural
Services Department (ArchSD) and the Housing Department (HD), to monitor the progress
of all school projects. All possible remedial actions will be taken once slippage
is identified so that improvement could be made soonest possible. Details of new
school premises completed and put to use in the past five years are at Annex
I. As shown in Annex I, the majority of school projects were completed on
schedule. There may be occasional slippage due to the following reasons - (1)
unsatisfactory performance of contractors (such as poor management, labour dispute
and financial problems); (2) some schools located in public housing estates could
not be completed on schedule due to slippage in the housing estate projects; (3)
unforeseen technical problems (such as geotechnical and piling problems); and
(4) disruption caused by bad weather. According to our original school building
programme, 23 new schools will be completed in the 2002/03 school year. Details
are at Annex
II. Similar to past years, we have been monitoring closely the progress of
school projects. Our assessment up to late April was that there might be a slippage
in six school projects this year. It is mainly due to the persistently unsatisfactory
performance of a contractor who happens to be in charge of five of these school
projects. ArchSD immediately took remedial measures at the end of last year when
it noticed that the progress was slow. Measures taken include interviews, written
warnings, and deployment of in-house architects to station on the sites for inspection
and supervision. The contractor has also been suspended from tendering for other
public works projects pending improvement in its performance. We hope that the
above measures could urge the contractor to expedite progress so that the schools
could be completed on schedule. If the projects fail to complete on time, we will
seek compensation from the contractor in accordance with the terms and conditions
of the contracts. The remaining project is located in a public housing estate
and is delayed due to rainy weather and unforeseen technical difficulties in piling.
HD has taken follow-up actions and will closely monitor the progress. Although
there is occasional delay in school projects and the delay is only a matter of
a month or so, we consider that this situation is not satisfactory. Our target
is to ensure that all school projects could be completed before the commencement
of a new school year. To achieve this target, we have taken the following actions
- (1) enhancing communication among relevant departments and advancing procedures
related to site identification, feasibility studies, planning and funding approval
etc., so as to allow a buffer between project completion and school commencement;
(2) streamlining procedures for capital works programmes. The streamlined procedures
have applied since November 2001. For example, after the streamlining, the time
required for feasibility studies has been reduced by about two to three months;
and (3) strengthening supervision of contractors' performance. To have a deterrent
effect, contractors whose performance is poor will be suspended from tendering
for public works projects for a period of time and required to compensate under
the contracts. While we will monitor and expedite the school projects through
measures mentioned above, we will also keep schools well informed of the latest
progress so that they could plan accordingly. If the school premises could not
be completed on schedule due to project delay, ED will take the initiative to
discuss with schools concerned for contingency measures, such as identifying suitable
temporary school premises, borrowing the premises of other schools, adjusting
the plans for conversion into whole-day schooling, etc., so as to minimise the
impact on teachers and students. [Source:
Hong Kong Government, 8 May 2002] 3.
LCQ2:Road network of Sai Kung able to cope with traffic demand
Following is a question by the Hon Miriam Lau and a reply by the Acting Secretary
for Transport, Mr Paul Tang, in the Legislative Council today (May 8, 2002): Question:
Despite the widening of some sections of Hiram's Highway and Sai Sha Road to dual
two-lane standard, the carriageway between Ho Chung and Sai Kung town centre as
well as that between Sai Kung town centre and Nai Chung are still single two-lane
carriageways. Serious traffic congestion occurs on the two carriageways, thus
affecting the tourism development in Sai Kung District. In this connection, will
the Government inform this Council whether: (a) it has assessed when Hiram's Highway
and Sai Sha Road will reach their design capacity; (b) consideration will be given
to advancing the completion of the road-widening works on the carriageway between
Ho Chung and Sai Kung town centre, and widening the carriageway between Sai Kung
town centre and Nai Chung to dual two-lane standard; if so, of the details of
the plans and the implementation timetables; if not, the reasons for that; and
(c) the road systems and transport facilities in Sai Kung District will be planned
afresh so as to tie in with the tourism development of the district; if so, of
the relevant details? Reply: Madam President, According to the study of Transport
Department, the section of Hiram's Highway between Clear Water Bay Road and Ho
Chung, and that between Ho Chung and Sai Kung town, will reach their design capacity
by 2006 and 2011 respectively. We are planning to widen the section of Hiram's
Highway between Clear Water Bay Road and Ho Chung to dual two-lane standard, and
the works are expected to complete in 2006/07. As for the section between Ho Chung
and Sai Kung town which is estimated to reach its design capacity in 2011, plans
are in hand to complete the widening works by then. The carriageway between Sai
Kung town and Nai Chung consists of sections of Tai Mong Tsai Road and Sai Sha
Road. The section of Sai Sha Road between Ma On Shan and Tai Tung would be widened
to dual two-lane standard in phases and works would be completed between 2004
and 2006. For the remaining sections of Sai Sha Road and Tai Mong Tsai Road, it
is anticipated that the capacity of these roads will be sufficient to cater for
the traffic demand over the next 15 years. As such, we have no plan to widen these
road sections at the moment. We will however closely monitor the traffic situation
and consider the implementation of improvement measures if necessary. The Study
on South East New Territories Development Strategy Review conducted by the Planning
Department recommended the promotion of tourism in Sai Kung area, with a view
to developing Sai Kung town into a Gateway Centre for tourists. During the course
of the Study, a Traffic Impact Assessment (TIA) was carried out to ensure that
both the local road system and external transport network of Sai Kung would be
able to cope with tourism development in the area. The results of the TIA indicated
that strategic access roads of Sai Kung could generally meet demand and upon the
completion of the aforesaid improvement works of Hiram's Highway and Sai Sha Road,
roads in the area would be able to cope with the traffic demand during peak hours.
In addition, a number of projects are in the pipeline to improve the connection
between Sai Kung and Tseung Kwan O. These include the dualling of Hang Hau Road
and the widening of Clear Water Bay Road between Tai Po Tsai and Hang Hau Road
to dual two-lane standard. The works are targeted for completion in 2007. [Source:
Hong Kong Government, 8 May 2002] 4.
$10b boost for urban renewal projects
The Government will give the Urban Renewal Authority (URA) $10 billion to boost
the financial viability of redevelopment projects in the next five years. The
authority - which redevelops slum areas - will also be sold any government land
it requires over the same period for a nominal fee of $1,000 - costing the Government
$9.2 billion in lost revenue. The price will apply to slum areas and other sites
required to re-house tenants evicted in projects. However, officials maintained
that in the long-run, the programmes to clear urban slums would have to be self-financing.
The announcement came after an Exco meeting on Tuesday. Secretary for Planning
and Lands John Tsang Chun-wah said approval would be sought from Legco's Finance
Committee for the $10 billion before the summer recess. He said the land premium
concession would help enhance the financial viability of authority projects. "The
premium forgone will be reflected in the capital of the URA for carrying out its
projects," he said. Mr Tsang said government support for the URA was required
in its initial years. In January, the authority announced a $2.6 billion redevelopment
programme for Wan Chai, Tai Kok Tsui and Shamshuipo. They are among 42 projects
being planned for the next five years, covering 13.5 hectares of land, and providing
18,000 residential units. They will affect 16,000 tenants. Total revenue is estimated
at $53 billion, with total costs of about $30 billion. Mr Tsang said the URA had
estimated it would be able to cover the $10 billion cash injection with revenue
- after a period understood to be about 10 years. Deputy Secretary for Lands and
Works Cheung Siu-hing said the $9.2 billion premium would most likely be only
a nominal loss. "Many, or most I would say, URA projects are not likely to
be taken up by private developers . . . If nobody is going to develop it in any
case, there is no question of land premium," she said. Ms Cheung said the
Government had considered providing loans to the authority to fund projects, but
the idea was dropped because of fears the arrangement would adversely affect its
overall financial situation. She maintained the Government concessions to the
URA would not be used to benefit its commercial partners. A URA spokesman said
the granting of land sites to the authority at the nominal price would enhance
the financial viability of projects. "This shows the commitment and determination
of the Government to speed up the pace of urban renewal," he said. URA chairman
Lau Wah-sum said the authority would begin its five-year plan when Legco approved
the $10 million financing. As projects should be self-financing in the long-run,
he said: "We must strike a balance between the interests of affected people
and financial viability." The URA, formed in May last year, has a target
of clearing 225 slum areas in 20 years through redevelopment, rehabilitation,
preservation and revitalisation of old areas. [Source:
SCMP, 9 May 2002] 5.
Go-ahead for Swire project
Swire Properties will begin a HK$3 billion office redevelopment in Quarry Bay
following its success in unifying the ownership of Melbourne Industrial Building
yesterday. The company was the sole bidder for the industrial building, making
the opening offer of HK$310 million - also the reserve price - at the public auction
ordered by the Lands Tribunal. The property was ordered to be auctioned after
a failure to settle differences between Swire Properties and a few individual
owners of the building. The group, which had acquired 98 per cent of the land
titles of the building, earlier applied through the Land (Compulsory Sale for
Redevelopment) Ordinance for an auction of the whole building. Swire Properties
general manager of development and valuation Gordon Ongley said the purchase price,
an average of HK$866 per square foot, reflected the market accommodation value
for offices. The building will be redeveloped with neighbouring Aik San Factory
Building, which was bought out by Swire through private negotiations earlier.
Mr Ongley said the group had spent six years and a total of HK$1.5 billion, including
the interest expenditure, in acquiring the ownership of Melbourne Industrial Building
and Aik San Factory Building. ''We expect to invest an additional HK$1.5 billion
for the construction of the combination [of the two sites],'' he said. The two
sites, spanning about 54,800 sqft, will be redeveloped into a 40-storey grade-A
office tower with a gross floor area of about 822,000 sqft. The estimated total
investment cost of HK$3 billion represents an average development cost of more
than HK$3,600 per square foot. Mr Ongley said the detailed development plan had
yet to be finalised but the future building could be connected with other office
towers in Island East as well as with public transport. ''The redevelopment will
be finished at sometime in 2006 ... adding our leasing portfolio in Island East
to 6.8 million sqft,'' he said. A spokesman for Chesterton Petty, which conducted
the auction, said Swire Properties was the only registered buyer yesterday. ''Other
developers who had shown interest earlier did not participate in bidding. Maybe
most of the interested parties recognised there was a limited chance to outbid
the majority owner because it had acquired over 90 per cent of the land titles,''
he said. Developers, including Nan Fung Development, sent representatives to the
auction hall yesterday but they stayed only on the sidelines. Swire Pacific group
deputy chairman Keith Kerr attended the auction but declined to make any comment.
Melbourne Industrial Building was completed in 1977, with a lease grant for 999
years and unlimited use. Developers can redevelop the site into commercial use
without paying extra premium. The site was also part of the Taikoo Sugar Refinery.
The refinery area has been converted into the modern Taikoo Place business hub,
a key part of Swire's Island East portfolio. The portfolio, including eight grade-A
office towers and three ''techno centres'' converted from industrial use, amount
to 5.7 million sqft. The ninth office building, Cambridge House, due to be completed
next year, will provide 300,000 sqft. Mr Ongley said Swire had no plans for further
acquisitions in the area because supply was adequate to meet demand. ''We have
no immediate plan to redevelop Warwick House, Somerset House and Cornwall House,''
he said. The group had secured approval to build a 1.45 million sqft office tower
on the sites of Somerset House and Cornwall House. A spokeswoman for Swire Properties
said that the three older industrial buildings, categorised as techno centres,
were generating satisfactory rental yields compared with nearby grade-A offices.
Meanwhile, the group's Cityplaza Two redevelopment at the Mount Parker House site
and Cityplaza One extension has been held up by an on-going premium case with
the Government. Swire appealed in the High Court last year against a decision
that favoured the SAR Government to charge a premium for three Cityplaza office
developments. The charge, estimated at HK$4.5 billion in 2000, was payable for
Cityplaza One, Cityplaza Three and Cityplaza Four. Swire would be required to
pay extra premium for the Cityplaza Two redevelopment and Cityplaza One extension
if it lost in appeal. [Source:
SCMP, 9 May 2002] 6.
Chance to salvage Tamar hope
The Legislative Council is almost certain to give the green light to the Government's
plan to relocate its headquarters to the Tamar site. However, there are several
issues that legislators must not overlook, especially the heights of the buildings
to be erected on the Admiralty waterfront and the proposed relocation of their
own council to the same site. A lack of stringent regulations has enabled developers
to build skyscrapers along the Central waterfront blocking buildings behind them
and even the Peak as viewed from the other side of the harbour. Despite its breathtaking
view of Victoria Harbour, the Tamar site is not as conveniently located as the
current Central Government Offices in Central. From the public's point of view,
the best arrangement is to reserve the spot for recreation. It could be developed
into a garden and a promenade to complement Hong Kong Park as the city's Central
Park. This is, of course, wishful thinking. Given the Government's current deficits,
officials are in no mood to release the prime spot for leisure purposes. They
are more interested in raising the plot ratio of the site to get more office space.
If the height of the future buildings is to be kept within a reasonable limit,
there may not be enough space to accommodate so many government departments. The
former British naval site covers only 4.56 hectares. This may turn out to be a
major limitation on its future use and design. There have been talks about constructing
50-storey blocks to make up for the limited space. If this is approved, it would
be another permanent impairment to our skyline. It has been suggested that the
future Legco building should be merged with the new Government headquarters. Such
a proposal is totally unacceptable. The law-making assembly is meant to be a government
watchdog. The role of the legislature would be undermined if it shares the same
site and is physically connected to the executive branch. The legislature is supposed
to be insulated from the Judiciary and the executive to ensure checks and balances,
and their physical locations should symbolise that the three branches of government
are working separately. There is no denying that Legco now requires larger premises.
The council's ward office and the offices of the councillors are now scattered
outside the Legco building. Chief Justice Andrew Li Kwok-nang has proposed that
the Legislative Council building be used as the Court of Final Appeal after the
move to the Tamar site. However, public discussion on the topic is now focused
primarily on how to sell or redevelop the current government building sites in
Central. A broader vision must be created to guide the overall development of
the area. One option is to relocate Legco to the present government headquarters
at Lower Albert Road. Future development there could then be linked with Government
House on Upper Albert Road and the Murray Building across the road. The synergy
of these government properties would exceed the value of the individual structures
and could form an office, shopping, hotel and entertainment area much like Pacific
Place, only on a grander scale. The Government could go a step further by hooking
up the Foreign Correspondents Club, also on Lower Albert Road, and the Fringe
Club. Together with Lan Kwai Fong and Soho, the area's reputation could be further
enhanced. Not too long ago, the Swire group submitted a novel proposal to authorities
to turn 17 colonial buildings in Central, including Victoria Prison, Central Magistracy
and Central Police Station, into a new tourist attraction. The idea, modelled
on London's Covent Garden, would be to transform the area into an integrated,
fashionable arcade for culture and the arts as well as bars and shops. Central
will then really become the heart of Hong Kong. To ease traffic congestion, which
is a chronic problem in Central, parts of the area would be designated for pedestrians
only. Environmentally friendly trams and pedestrian travellators could be installed.
Meanwhile, in an apparent move to win over voters, legislator Lau Ping-cheung
has proposed that the contracts for the design and planning of the future Tamar
government headquarters be granted to a local architect. This is protectionism
at its worst. Mr Lau, who represents the architectural, surveying and planning
functional constituency, has put his sector's interests ahead of the public's.
Hong Kong is an open city where competition is based on competence rather than
nationality. Its international image of a level-playing field must not be compromised.
It will, of course, be a huge cause for celebration if a local architect outshines
others to win the contract. But it is a shame that the planning profession's representative
to the assembly has shown such narrow-mindedness. Mr Lau's stance also reflects
the lack of confidence among local professionals. In China, the designs of Beijing's
Grand Opera House and Shanghai's public library were both awarded through open
tender. The same applied to landmarks in other countries such as Berlin's parliamentary
building. The French commissioned Chinese-American architect I.M. Pei to design
the stark glass pyramid entrance to the Louvre. The French media at the time attacked
then-president Francois Mitterrand for picking an outsider to shatter the harmony
of the Louvre's courtyard with a ''glass iceberg'' that would clash with the museum's
Baroque style. Many thought the choice of Mr Pei amounted to political suicide
for Mitterrand. But when the pyramid was completed in 1989, Mr Pei's vision was
hailed as a masterpiece. The structure has now become a tourist spot in its own
right. This and other innovative structures have adorned many major metropolises.
Hong Kong should seize the opportunity that the Tamar site presents to builda
world-class architectural magnum opus of our own. A team led by British architect
Lord Norman Foster has excelled in the bid for the design of the West Kowloon
development. Rumour has it that some people are eager to scupper the arrangement
so the project could be pocketed by local companies. Should this be allowed to
happen, it will be the end of Hong Kong as we know it. Barring the best from outside
the territory from contributing is simply not the Hong Kong way. [Source:
SCMP, 9 May 2002] |  |
|
