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for. 1.
Statement by PCICB Chairman on KCRC's Investigation
Report on West Rail contracts 2.
LCQ20 : Policy on construction quality control testing 3.
Road widening at Clear Water Bay Road 4.
Public views sought on road works in Yuen Long and
Tsuen Wan 5.
Resumption of land for drainage works in Yuen Long 6.
Draft Pok Fu Lam Outline Zoning Plan amended 7.
KCRC awaits signal to begin $35b rail route 8.
Developers face defeat at North Point 9.
'Wasteful' plan for top site approved
1. Statement by PCICB Chairman on KCRC's Investigation Report on West Rail contracts The
following is a statement by Chairman of the Provisional Construction Industry
Co-ordination Board (PCICB), Honourable Henry Ying-yen Tang, on the investigation
report on West Rail contracts released by the Kowloon-Canton Railway Corporation
(KCRC) today (May 16): "As a pan-industry discussion forum, PCICB will examine
carefully the findings and observations contained in the investigation report
released by KCRC, particularly from the perspective of project supervision and
dispute resolution. Since risks and uncertainties are inherent in all projects,
the Construction Industry Review Committee (CIRC) has suggested that systematic
and effective risk management should be promoted as an effective tool to bring
about satisfactory achievement of project objectives. The major public sector
clients are driving this initiative by developing guidance notes to put in place
an integrated approach on the assessment and management of prominent construction
risks. In a highly competitive business environment, I would like to urge that
greater vigilance be exercised against the tendency of some bidders to make an
inadequate allowance to cover risks. Public sector clients should take the lead
by taking steps to accord due weight to both quality and past performance in the
tender evaluation process, and by promulgating concrete measures to screen out
exceptionally low bids. There is also an emerging consensus among industry stakeholders
on the advantages of resolving claims proactively and on the merits of adopting
a partnering approach to ensure timely project completion. Supplemental agreements
and alternative dispute resolution techniques, if administered properly, should
continue to be deployed in addition to arbitration and litigation. The PCICB will
take a close interest in developments arising from the investigation report and
will collaborate with public sector clients in pursuing the new initiatives on
risk management and dispute resolution." [Source:
Works Bureau, 16 May 2002] 2.
LCQ20 : Policy on construction quality control testing
Following is a question by the Dr Hon HO Chung-tai and a written reply by the
Secretary for Works, Mr Lee Shing-see, at the Legislative Council meeting today
(May 15) : Question: Under current practice, the main contractors of government
construction works are responsible for both construction material testing and
works acceptance tests. This may create a conflict of interest situation where
the material supplier and the testing agent have a close business relationship
and result in unsatisfactory quality control of the construction works. In this
connection, will the Government inform this Council whether: (a) it will review
the current practice; if so, of the timetable for the review; if not, the reasons
for that; (b) this practice will apply to the infrastructure projects which are
to be implemented in the next 15 years as mentioned in the Chief Executive's 2001
Policy Address; and (c) it will consider implementing the Independent Commission
Against Corruption ("ICAC")'s recommendation of employing independent
testing laboratories for material testing and works acceptance tests, as set out
in the ICAC report on Construction Quality Control Testing published in December
1999; if so, of the implementation timetable; if not, the reasons for that? Reply:
Madam President, (a) In 2000 Works Bureau had completed a review on the usage
of public works laboratories aiming at better construction quality control testing
in terms of service utilization of the public works laboratories; testing independence;
and sampling, storage and transportation. Particular reference was made to the
independence of the testing laboratories to avoid the potential conflict of interest.
We have implemented a series of measures as follows: - (i) In June 2000 Works
Bureau has issued a Technical Circular (WBTC 14/2000) setting out the policy to
tighten up the control on construction materials and works acceptance testing
for all public works projects to avoid potential conflict of interest. It requires
the works departments undertaking public works to use the Public Works Laboratories
or their term contract laboratories to carry out such acceptance testing. Should
there be any need for practical reasons to employ other laboratories, a stringent
set of requirements on sample selection, transportation, test supervision and
audits are imposed to avoid potential conflict of interest. These include the
condition that the laboratory so employed must have no affiliation as a legal
entity to the contractor and its sub-contractors. Test results must be sent directly
to the project engineer/architect in sealed envelope, without routing through
the contractor. (ii) In 2001 the General Specification for Civil Engineering Works
(GS) was revised to implement the policy promulgated in the above circular. The
General Specification for Building has also been reviewed and similar revision
will be made in its new 2002 edition. A particular specification for building
works to incorporate the necessary requirements has been issued in May 2002. (b)
Having incorporated the above measures, the new system has made improvement and
is working very well. As part of the continuous improvement, Works Bureau will
review the system from time to time to achieve a high standard of quality control
testing. The improved system will continue to apply to the upcoming infrastructure
projects. (c) The use of independent laboratories for material testing and works
acceptance tests as set out in the recommendations in the ICAC report on Construction
Quality Control Testing published in December 1999 has already been promulgated
in the above Works Bureau Technical Circular, and implemented in the specifications
used in public works. [Source:
Works Bureau, 15 May 2002] 3.
Road widening at Clear Water Bay Road
The Government will spend $109 million to widen a 600-metre long section of Clear
Water Bay Road south of its junction with University Road to enhance the traffic
situation there. A notice on the authorization of the project is given today (May
17) in Government Gazette. The works involves widening and reconstruction of about
600 metres of Clear Water Bay Road south of its junction with University Road,
construction of a footbridge across Clear Water Bay Road and ancillary works.
Construction works are scheduled to commence in early 2003 and will take about
22 months to complete. Members of the public can read the information of the plan
at the Public Enquiry Service Centre of the Central and Western District Office,
Sai Kung District Office, and Sai Kung District Lands Office. [Source:
Hong Kong Government, 17 May 2002] 4.
Public views sought on road works in Yuen Long and Tsuen Wan
Highways Department is now soliciting opinions from the public about its proposal
to construct a footbridge system at the junction of Castle Peak Road Yuen Long
Section, Ma Miu Road and Yuen Long Tai Yuk Road to replace the existing traffic
signal crossings. A notice concerning the proposed works is published in the Government
Gazette today (May 17). Members of the public can read the plan of the proposed
work at the following government offices: * Central and Western District Office,
Public Enquiry Service Centre, Ground Floor, Harbour Building, 38 Pier Road, Central,
Hong Kong; * Yuen Long District Lands Office, 9-11/F, Yuen Long Government Offices
and Tai Kiu Market, 2 Kiu Lok Square, Yuen Long, New Territories; * Yuen Long
District Office, Yuen Long District Office Building, 269 Castle Peak Road, Yuen
Long, New Territories. Meanwhile, Highways Department is also soliciting opinions
from the public about its proposal to construct a new carriageway linking Tai
Ho Road and Yuen Tun Circuit, Tsuen Wan, and to convert part of the existing carriageways
and footpaths into the open space of Tsuen Wan Town Hall. A notice concerning
the proposed works is published in the Government Gazette. Members of the public
can read the plan showing the extent of the proposed works together with a scheme
description at the following government offices: * Central and Western District
Office, Public Enquiry Service Centre, Ground Floor, Harbour Building, 38 Pier
Road, Central, Hong Kong; * District Lands Office, Tsuen Wan, 10th Floor, Tsuen
Wan Station Multi-storey Carpark Building, 174-208 Castle Peak Road, Tsuen Wan,
New Territories; and * Tsuen Wan District Office, 1st Floor, Tsuen Wan Station
Multi-storey Carpark Building, 174-208 Castle Peak Road, Tsuen Wan, New Territories
Any person who wishes to object to the above works or the use, or both, is required
to address his objection in writing to the Secretary for Transport, 16th Floor,
Murray Building, Garden Road, Central, Hong Kong so as to reach the office of
the Secretary not later than July 16, 2002, describing his interest and the manner
in which he alleges that he will be affected by the works or the use. [Source:
Hong Kong Government, 17 May 2002] 5.
Resumption of land for drainage works in Yuen Long
The Government will resume nine private agricultural lots with a total area of
about 43,630 square metres to facilitate drainage improvement works in San Tin
and Chau Tau, Yuen Long. A Resumption Notice for the works was published in the
Government Gazette today (May 17). The proposed drainage works aim to alleviate
the risk of flooding in the area. The project is implemented in three phases.
Phase 1 and Phase 2 were completed in April 1999 and June 1999 respectively. The
proposed works for Phase 3, Part I comprise the construction of an approximately
2.2 kilometre-long drainage channel, together with an inflatable dam, a low-flow
pumping station and associated drainage and water works, running from Castle Peak
Road, Chau Tau Section, to Shenzhen River. The works are scheduled to commence
in September 2002 for completion by September 2005. [Source:
Hong Kong Government, 17 May 2002] 6.
Draft Pok Fu Lam Outline Zoning Plan amended
The Town Planning Board (the Board) today (May 17) announced amendments to the
draft Pok Fu Lam Outline Zoning Plan (OZP). The amendments to the OZP mainly include
the rezoning of a site at the junction of Pok Fu Lam Road and Victoria Road from
"Open Space" to "Government, Institution or Community" for
school use to meet the demand for school in the Southern District. Another amendment
is related to the rezoning of a site at 100 Pok Fu Lam Road from "Green Belt"
to "Other Specified Uses" annotated "Petrol Filling Station"
to reflect the current use of the site. The draft Plan No. S/H10/12 incorporating
the amendments is now available for public inspection until June 7, 2002 at the
Secretariat of the Town Planning Board, 15th Floor, North Point Government Offices,
333 Java Road; the Hong Kong District Planning Office, 14th Floor, North Point
Government Offices and the Southern District Office, Ground Floor, Ocean Court,
3 Aberdeen Praya Road. Any person affected by the amendments may submit a written
statement of objection to the Secretary of the Town Planning Board on or before
June 7, 2002. Copies of the draft Plan are available for sale at the Map Publications
Centres in Yau Ma Tei and North Point. [Source:
Hong Kong Government, 17 May 2002] 7.
KCRC awaits signal to begin $35b rail route
Officals will give the green light to the Kowloon-Canton Railway Corporation (KCRC)
in the next few weeks to develop the Sha Tin to Central rail link, estimated to
cost between HK$25 billion and HK$35 billion. The railway includes a fourth harbour
crossing between Kowloon and Hong Kong Island. Political insiders confirmed that
the Transport Bureau would seek final approval from the Executive Council (Exco)
to award the KCRC the rights to develop the new rail line. Exco is set to approve
the proposal, possibly by the middle of next month, and an announcement would
be made soon after that. The move would come nearly a year after the KCRC and
the Mass Transit Railway Corporation (MTRC) submitted rival proposals on the project.
The government's decision to award the project to the KCRC follows Wednesday's
publication of the Ernst & Young report on a KCRC decision to pay an extra
HK$1.63 billion to its West Rail contractors. The probe, while criticising the
lack of adequate communication between the KCRC management and board, backed its
reasons for making the payments as financially and commercially prudent. Acting
Secretary for Transport Paul Tang had earlier confirmed in the Legislative Council,
that the government would wait until after the probe ended before announcing its
decision. Answering a question from Democratic Party legislator Andrew Cheng on
Wednesday, Tang said the report's findings would have no bearing on the government's
decision on whether to appoint the KCRC. This was because the probe into the West
Rail contracts was outside the scope of the tender exercise launched more than
18 months ago for the Sha Tin to Central railway. But he added: ``KCRC has gained
a lot of experience [on West Rail] and progress on the whole has been rather satisfactory.''
Tang said the KCRC's difficulties could be overcome by adding members with experience
of large developments to the new railway projects steering committee, which he
believed would achieve a ``better monitoring job''. The KCRC has been tipped to
win the Sha Tin to Central line for the past six months after rumours circulated
in November that Exco had approved the appointment. The rail company is believed
to have offered a better financial package by agreeing to give the government
property development rights along the 15-kilometre route. By comparison, the MTRC
would keep the development rights to offset railway construction costs. The MTRC
also offered to build two additional stations, one at Diamond Hill, the other
at Whampoa Garden, which would increase the passenger catchment by an extra 240,000
people. But under the terms of the offer these stations, which form part of alternative
proposals put forward by the MTRC, would only be built if the MTRC won the bid
according to the government specification. That idea seems to have been derailed.
The MTRC had also said it could also slash a year off the construction deadline,
opening the railway in 2007 instead of 2008. [Source:
Hong Kong iMail, 18 May 2002] 8.
Developers face defeat at North Point
Despite strong opposition from private developers, the Housing Authority has given
the go-ahead for a mixed development at North Point Estate. Under the proposal,
the developer who acquires the prime waterfront site for private housing will
be required to hand back 25 per cent of the residential floor area - around 800
flats - to the authority for public housing. Members of the authority's strategic
planning committee had ``agreed in principle'' to the plan, a source said yesterday.
The plan, first proposed when the authority decided to redevelop the estate, has
been severely criticised by developers who claim the site should be sold solely
for private residential development. New World Development senior manager of sales
and marketing Barbara Ho said the mixed development proposal would affect the
land premium because North Point Estate was a prime site. ``If the government
decides to carry out the mixed development, it would be better to separate public
and private housing flats in different blocks,'' Ho said. Henderson Land Development
marketing general manager Donald Cheung and Sun Hung Kai Properties vice-chairman
Thomas Kwok also opposed the proposal. Swire Properties managing director Keith
Kerr, also executive chairman of the Real Estate Developers' Association, said
developers wanted the site to be sold on a clear and uninhibited basis to realise
full potential. However, the source said the authority needed to consider the
interests of different social sectors when making its decision. The Housing Authority
will table the proposal for final approval by all members late next month. The
authority will sign a memorandum of understanding with the government as soon
as it approves the proposal. ``I believe it is clear that the government and the
authority's [final] decision on mixed development will not be affected by pressure,''
Wong Kwun, a member of the strategic planning committee, said yesterday. The source
described the proposal as ``a triple win'' because land usage would be optimised,
offering people improved facilities and a better traffic network in a mixed development.
He said the authority would ensure the flats for public housing would be of the
same standard as those on offer for private sale. The authority would also receive
cash payment dependent on the sale of completed flats at the North Point project.
He said earnings from the 25 per cent flat allocation and cash proceeds should
equal those of a Home Ownership Scheme. The source said the authority expected
the North Point site to be available for sale as early as 2004. The first batch
of completed new flats at the redeveloped site would be available as early as
2008. The source said the North Point Estate project would be used as blueprint
for the redevelopment of other ageing estates. [Source:
Hong Kong iMail, 18 May 2002] 9.
'Wasteful' plan for top site approved
Controversial plans to develop North Point Estate with a mix of private and public
flats were approved yesterday, in a move attacked by developers as wasting one
of the most desirable sites in recent years. Under the so-called mixed model,
developers will have to devote 25 per cent of the flats - 800 to 900 - to public
housing which would be turned over to the authority. The land is expected to sell
for at least $9 billion, and prior to approval of the mixed plan, the new development
could have been worth up to $20 billion. Critics said the scheme defied commercial
principles and the presence of public housing would drag down prices on the prime
harbourfront site. But a senior Housing Department spokesman called it a "win-win-win"
formula for the authority, the public and the Government. "Under this plan,
we would be able to get both money [from the land sale] and flats," he said.
The authority's strategic planning committee yesterday finalised the plan and
decided to submit it to a full council meeting for likely endorsement next month.
The source said the 75-25 private-public mix was arrived at after "balancing
the interests of all sectors". It is understood that the originally proposed
ratio was 50-50. The percentage of public flats was first lowered to 30 per cent,
then 25 per cent, but the spokesman denied that the reduction represented a bowing
to pressure from developers. It is understood that the site could be ready for
sale by public tender or auction by 2004. The project would be ready by 2008 at
the earliest. "The basic principle is that the authority's return from this
mixed development would not be less than from redeveloping the site ourselves,"
the source said. Under the plan, buildings on the 3.79-hectare site would be demolished
by August. Only a handful of families now remain in the estate, opened in 1957
and once home to 1,750 familes. The public flats will either be grouped into one
or two buildings or mixed among the other flats. Details will be decided later.
The source said developers would be required to keep the quality of the public
flats the same as the private ones, and dismissed fears that they would drag down
prices. But non-affiliated lawmaker Abraham Razack, who represents the real estate
and construction sector, said the plan went against commercial principles and
would be a waste of public resources. "The Government should sell the entire
site, which is set to fetch high returns. Mixing it with public flats would hurt
the market which has just picked up after the economic downturn," he said.
New World Development sales and marketing senior manager Barbara Ho said: "It
would be better to have a clear separation between subsidised housing and private
development, rather than to mix them up within a housing block." Henderson
Land's general manager of sales, Donald Cheung Ping-keung, suggested that the
Government should not finalise the North Point scheme until it had seen the sales
results of two much smaller mixed projects, one in Ap Lei Chau and one in West
Kowloon, being built under a pilot scheme. "[Mixed development] will affect
the Government's revenue, as developers will discount their offers when buying
land given the uncertainties. It will affect the sale prices of private units,"
he said. But Housing Authority member Wong Kwun said that pressure from property
interests would have no bearing on the outcome. "The decision of the Government
and the authority will not be affected by some people's comments or pressures
on the mixed development plan," he said. Frederick Fung Kin-kee, a legislator
of the Association for Democracy and People's Livelihood, and Ho Hei-wah, of the
Society for Community Organisation, said the site should be devoted to public
rental housing. [Source:
SCMP, 18 May 2002] |  |
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