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for. 1.
D of DS (designate) responds to his new appointment 2.
LCQ11 : Increases in APE for certain building projects
explained 3.
LCQ16: Land grant mechanism for housing development 4.
Legco tells KCRC to smarten up 5.
$12b fillip for Route 9 welcomed 6.
Democrat's move to censure KCRC bosses fails 7.
Security fears over foreign Tamar bids rejected 8.
KCRC chief signals empire building days are over
1. D of DS (designate) responds to his new appointment Following
is a statement by the Director of Drainage Services (designate), Mr Raymond Cheung
Tat-kwing, in response to his new appointment: "I am pleased to succeed Mr
John Collier as the Director of Drainage Services on June 9 this year. I have
served in the Drainage Services Department for over 10 years and have gained good
experience in all areas of the work of the department. As the head of the Department,
I will continue to maintain good communication with staff of different disciplines
and will promote a harmonious working relationship within the department. I also
expect to work hard with my colleagues to better serve the community. The Drainage
Services Department is tasked with the responsibilities for affording the community
a good standard of flood protection and for providing effective service in wastewater
treatment . To achieve this, we need proper planning, construction and management
of our drainage and sewerage infrastructures. I will strive to deliver high quality
service through continuous improvement of our facilities and prompt response to
the needs of the community. With the continued dedication and support of our staff,
I am sure that we can attain our goals." [Source:
Hong Kong iMail, 24 May 2002] 2.
LCQ11 : Increases in APE for certain building projects explained
Following is a question by the Hon CHAN Kwok-keung and a written reply by the
Acting Secretary for Works, Mr Keith Kwok Ka-keung, at the Legislative Council
meeting today (May 22) : Question : With regard to the public projects
in which the design and supervision work is contracted out by the Architectural
Services Department ("ASD") to private architects and the construction
work undertaken by private contractors, will the Government inform this Council
whether, over the past three years: (a) there was incidence of the costs of the
projects undertaken by such private contractors exceeding the estimated costs;
if so, of the excess amount in each project and its proportion to the estimated
cost of the project; (b) there were cases in which the contracted out projects
were completed only after the injection of Government funds as a result of shortage
of funds on the part of such private contractors; if so, of the descriptions and
costs of the projects concerned, and the amount of funds injected by the Government;
(c) ASD has instituted civil proceedings against such private contractors, terminated
their employment contracts or blacklisted them due to cost overrun, and the Government
having to inject additional funds, or unsatisfactory work progress; if so, of
the names of such private contractors and the projects undertaken by them; and
(d) upon taking over completed projects from such private contractors, ASD had
to deploy staff to follow up or rectify problems in the completed projects; if
so, of the number of such staff and their posts? Reply : Madam President,
(a) Over the past three years, Government has increased the Approved Project Estimate
(APE) for the following three projects which were contracted out to private architects
- Percentage Project Original Excess of increase Reasons Title APE amount to the
APE for increase Government $376.9M $14.9M 4% To provide Quarters additional at
Fanling flats and ancillary facilities which were permissible under the new guidelines
of the Building Regulations promulgated before completion of the project. Extension
to $72.0M $6.6M 9% To construct Hong Kong two lay-bys Chinese for schoolbuses
Women's Club and carry out Hioe Tjo associated Yoeng Primary geotechnical School,
Shau works in Kei Wan order to meet Transport Department's new safety requirements
Hong Ning $11.42M $9.5M 83% This was a Road Park project (Phase 2) carried out
by the former Provisional Urban Council. The payment was required to settle the
outstanding account. (b) As explained above, the increases in the APE for these
projects were not due to shortage of funds of the contractors involved. (c) Since
the increases of APE for the above three projects were not due to contractors'
poor performance, there were no grounds for Government to seek remedies from the
contractors. (d) Architectural Services Department did not need to deploy additional
staff resources in attending to problems in the above projects after taking over
them from the contractors on completion. [Source:
Hong Kong Government, 22 May 2002] 3.
LCQ16: Land grant mechanism for housing development
Following is a question by the Hon Emily Lau and a written reply by the Secretary
for Planning and Lands, Mr John C Tsang, in the Legislative Council today (May
22): Question: In his speech during the resumption of the Second Reading
debate on the Appropriation Bill 2002 in this Council on 17 April this year, the
Chief Secretary for Administration said that the Administration had modified the
land grant mechanism for housing development, and would continue to ensure that
there would be adequate land to meet our public housing objectives. He also gave
an assurance that there was no policy to create ghettos in our community. In this
connection, will the executive authorities inform this Council: (a) whether they
had conducted any public consultation when the land grant mechanism for housing
development was modified; (b) of the criteria and procedures specified by the
modified mechanism in respect of matters relating to land grant; (c) when they
intend to implement the modified mechanism; and (d) how to ensure that not all
the prime sites will be used for the development of private housing when the modified
mechanism is implemented? Reply: Madam President, (a) As pointed out by
the Chief Secretary for Administration at the Legco sitting on 17 April, the objective
of modifying the land grant mechanism is to apply effectively a clear and balanced
set of criteria in the allocation of land for housing development. This is not
a new policy. We simply formalize the set of criteria used in the past and assign
an existing committee to continue to apply the criteria. As the mechanism only
relates to operations within the Government, and does not involve any new policy,
no public consultation has been conducted. (b) The criteria for allocation of
land for housing development comprise a number of factors for consideration, mainly:
* Land Policy - to optimize the utilization of scarce land resources, in order
to put land to its best economic and social use. * Planning Policy - to promote
an appropriate mix of private and public housing of different densities in urban
and new town areas in order to achieve social and visual harmony and variety in
urban built form. * Effectiveness Policy - to achieve economies of scale and to
provide adequate facilities for the community. The existing procedures are basically
the same as the allocation procedures adopted in the past. After a site has been
earmarked for residential use, the committee concerned will recommend whether
the site should be used for public or private housing development by applying
the criteria. The recommendation will be submitted to another committee for decision
before implementation. (c) The modified mechanism is already in operation. (d)
Under the modified mechanism, the Government will consider a number of factors,
including the land policy, planning policy and effectiveness policy, so as to
strike the right balance in the allocation process in the best interests of the
community as a whole. The Government will also continue to ensure that there will
be adequate land to meet the public housing objectives. [Source:
Hong Kong Government, 22 May 2002] 4.
Legco tells KCRC to smarten up
Legislators have asked the Kowloon-Canton Railway Corporation (KCRC) to implement
key recommendations contained in the Ernst & Young probe into the rail company's
payment of an extra HK$1.63 billion to West Rail contractors. But lawmakers stopped
short of censuring senior management including KCRC chief executive Yeung Kai-yin
and senior director, capital works, James Blake for the problems. The payments
included an additional HK$100 million to German engineering giant Siemens for
its HK$287 million telecommunications contract. In a motion introduced by engineering
functional constituency representative Raymond Ho, legislators agreed the KCRC
should introduce Ernst & Young's suggestions and report back to the Legislative
Council's transport panel subcommittee. The recommendations included expansion
of the new railway projects steering committee to include people with a construction,
major projects or legal background and for the group to meet more frequently.
Ernst & Young also said membership of the KCRC's board should be widened to
include one or two people with specific knowledge and experience of major projects.
It also recommended a shake-up of claims payment and tendering systems so that
construction claims and payments would be vetted and independently checked by
a technical audit group. It said at least six firms always should be invited to
tender for contracts. But legislators rejected another motion by the Democratic
Party's Andrew Cheng criticising KCRC management for their handling of the problems
and urging the KCRC introduce a code of best practice for its staff. Abraham Shek
said it was clear from the accountant's report that the KCRC ``had done the right
thing'' in the way it settled construction disputes while work continued rather
than wait to the end of the West Rail project. ``We need to be fair. I don't think
you can only criticise the KCRC. I don't think you can blame Yeung and his colleagues,''
Shek said. He added that Michael Tien ``has already brought a breath of fresh
air into the KCRC management'' since taking over as chairman. ``We should look
forward rather than look for our pound of flesh,'' Shek said. Tien said the KCRC
was already working on ways to introduce many of the accountant's suggestions.
``By the end of the year we will decide on the composition of the managing board
and identify suitable candidates,'' he said. The KCRC would step up its supervision,
particularly of mechanical and electrical contractors.Blake added the KCRC was
reviewing the way it tendered projects and bundled related work into one contract. [Source:
Hong Kong iMail, 23 May 2002] 5.
$12b fillip for Route 9 welcomed
The hard-pressed construction industry is set to receive a HK$12 billion fillip
after legislators yesterday backed plans for the construction of the remaining
sections of the Route 9 highway between Tsing Yi and Sha Tin. The plans include
the landmark HK$3 billion Stonecutters bridge that will span the entrance to the
Kwai Chung container port across the Rambler Channel and two tunnels between Cheung
Sha Wan and Sha Tin. Highways Department project manager for major works Robert
Lloyd said after the meeting: ``It's good news for the industry. People here are
delighted.'' The decision by the Public Works Subcommittee follows the awarding
two weeks ago of a HK$1.53 billion contract to China Harbour Engineering for the
construction of the 2.2-kilometre Ngong Shuen Chau viaduct near Kwai Chung. Funding
for the rest of the Route 9 highway will be considered by Legco's Finance Committee
on June 19. Briefing legislators yesterday, Lloyd said the remaining work would
be carried out under 11 construction contracts split between the Tsing Yi-Cheung
Sha Wan and Cheung Sha Wan-Sha Tin sections of Route 9. He said work on the HK$1.4
billion Nam Wan tunnel and west Tsing Yi viaduct would start next February and
finish in April 2007. Construction of Stonecutters bridge would start in November
2003 for completion in December 2007. This will be followed in November 2004 with
a start on the HK$1 billion east Tsing Yi viaduct with completion also due in
December 2007. A HK$20 million lookout point and exhibition centre is also planned
on the Tsing Yi-Cheung Sha Wan section. Major works on the Cheung Sha Wan-Sha
Tin section include the HK$1.3 billion Sha Tin Heights tunnel, the HK$3 billion
Eagle's Nest tunnel, and the HK$1.1 billion Lai Chi Kok viaduct that will start
in September 2003 for completion in April 2007. [Source:
Hong Kong iMail, 23 May 2002] 6.
Democrat's move to censure KCRC bosses fails
A Democrat's motion to condemn the KCRC for not punishing its three top officials
was voted down by lawmakers yesterday. Members from the Breakfast Group of independents,
the Liberal Party and the Democratic Alliance for the Betterment of Hong Kong
said the rail operator had done a "good job" in righting the wrongs
in the Siemens scandal. They supported a milder motion that called for the Kowloon-Canton
Railway Corporation to implement improvements as suggested by an independent auditor,
which investigated the incident. Legislators had earlier called for harsher penalties
for the three top KCRC officials for their part in the scandal. The controversy
erupted after it was revealed the corporation made an extra $100 million payment
to telecommunications contractor Siemens, despite Siemens not meeting its work
schedule on the West Rail project. A report last week by the external auditor
drafted in to investigate the payout criticised the KCRC management for not alerting
the managing board sooner, and put the blame on the management's method of reporting
problems. KCRC chief executive Yeung Kai-yin, who was also board chairman during
the period in question, has apologised over the matter. Senior director of capital
projects James Blake and Ian Thoms, director of West Rail, apologised for "errors
of judgment". A special subcommittee meeting of the Legco transport panel
yesterday decided not to form a select committee to investigate the scandal. It
urged the KCRC to make progress reports on improvements in management. Lau Ping-cheung,
of the Breakfast Group, said the KCRC was a "victim" in the incident
and should not be punished. "It has done the right thing and has protected
both business and the public interest [by preventing delays]. The only wrong .
. . was the late reporting to the board," Mr Lau said. Abraham Razack, representing
the real estate and construction sector, said: "Mr Yeung has done a good
job and should be praised. We should not condemn them just because they have made
one mistake." Democrat Andrew Cheng Kar-foo moved an unsuccessful motion
to condemn the KCRC for not punishing the three officials, and called for the
creation of a code of practice to prevent officials from abusing their powers.
His colleague Albert Chan Wai-yip renewed his call for the three officials to
make donations to the Community Chest as a punishment. Mr Yeung, Mr Blake and
Mr Thoms refused the call. An amended motion moved by non-affiliated Raymond Ho
Chung-tai calling for the KCRC to implement the auditor's recommendations, which
included appointing new directors with specific knowledge and experience of major
projects to the board, was passed by six votes to three. Speaking after the meeting,
KCRC chairman Michael Tien Puk-sun said he welcomed the passing of the amendment.
"It has reflected that what we have done was suitable," he said. Mr
Tien promised to improve management processes. [Source:
SCMP, 23 May 2002] 7.
Security fears over foreign Tamar bids rejected
The design and building of the new government headquarters and Legco chamber on
the Tamar site will be open for global bidding despite security concerns. The
Government has ruled out restricting participation in the project to local architects
and contractors, legislators heard. As a member of the World Trade Organisation,
Hong Kong should not only observe the letter of WTO rules but also their spirit,
the Secretary for Lands and Works, John Tsang Chun-wah, said. He said the Government
would invite local and overseas firms to bid for the Tamar project. But Lau Ping-cheung,
of the Breakfast Group of independent legislators, said the building of the complex
might involve state secrets. He raised concerns over possible installation of
telephone tapping and other spying devices. Mr Tsang said he had not heard of
any country using such reasons to justify excluding global competitors from government
projects. "Hong Kong is a free and open city," he said. "We are
committed to upholding our international image of fairness, equity, and openness."
Mr Tsang said the $6.4 billion Tamar project could create 5,000 jobs locally.
Work is due to be completed in 2007. "The Security Bureau and concerned departments
will be invited to give professional advice and guidance on the security measures,
procedures and systems during the design and construction of the [complex],"
he said. [Source:
SCMP, 23 May 2002] 8.
KCRC chief signals empire building days are over
KCRC chairman Michael Tien Puk-sun's handling of the investigation into the $100
million payout to Siemens has signified a new management style at the government-owned
utility. The days of retired senior government officers building independent empires
in public institutions are over. Last week, all eyes were on how the new chairman
would handle the report into the fiasco. Mr Tien made clear where he stood by
denouncing what he labelled as the Kowloon-Canton Railway Corporation's ''arrogant''
culture, amounting, in effect, to a direct criticism of chief executive Yeung
Kai-yin. The management had been over-confident that it could resolve the problem
with Siemens, he said, endorsing the report's finding that a delay in notifying
the KCRC board of directors had made matters worse. The disclosure led to an independent
probe, launched in late January, into the extra payout as well as 27 other supplementary
agreements for West Rail, totalling $1.53 billion. Though the public is crying
for blood, Mr Tien has insisted an open apology from Mr Yeung was adequate. That
is indeed appropriate, and in the best interests of the public. West Rail is proceeding
well and the line, linking the northwest New Territories and Shamshuipo, is expected
to be operational next year. The KCRC simply cannot afford to change horses in
midstream. Any disruption to the works due to an untimely reshuffle at the top
could cause delays and waste taxpayers' money. Allowing Mr Yeung and others to
stay on until the project is completed is the only pragmatic option. In any case,
it would take time to find a replacement for Mr Yeung. As the investigation report
has affirmed, there was no evidence of dereliction of duty on his part. His mistake
was his failure to notify the KCRC board early enough. The report has also cleared
Secretary for the Treasury Denise Yue Chung-yee, who is also a KCRC director.
The report did, however, expose a rift between the chairman us98and KCRC management.
The issue was raised at the press conference on the report. Mr Yeung said: ''Mr
Tien is not only the chairman of my company but also my good friend. Your speculation
about bad relations between us is completely wrong.'' In a knee-jerk reaction,
Mr Tien immediately countered that Mr Yeung was mistaken. ''It is true we have
known each other for many years, but does it qualify us as good friends?'' he
asked. He added that it was important for him to remain impartial as chairman.
Mr Tien's reaction has given a glimpse into his subconscious mind, surprising
the public and leaving Mr Yeung red-faced. He created an impression that he was
eager to protect his personal image at the expense of Mr Yeung's. It also sends
a message to all top civil servants that they are no good friends of the princelings
of the new ruling elite. Actually, there is no reason why Mr Tien could not maintain
his impartiality while maintaining a good and fruitful friendship with Mr Yeung.
Mr Yeung, a former secretary for transport, has confirmed he will not seek a contract
extension when it expires next year. The names of some retired top civil servants
have been floated as possible candidates for the job but, in an interview with
the South China Morning Post, Mr Tien said he did not think it was a good idea
having a former civil servant to succeed Mr Yeung because the company had long
been criticised as being ''a clubhouse'' for retired officials. This apparent
bias against former civil servants is unjustified. They should not be ruled out
just because they have served in the bureaucracy. John Chan Cho-chak, of Kowloon
Motor Bus, and Rafael Hui Si-yan, of the Mandatory Provident Fund Scheme Authority,
are former civil servants who have proven outstanding executives. Mr Tien's eagerness
to draw a line between himself and the incumbent KCRC executives may backfire,
generating a negative effect among some KCRC staff. Incumbent managers may find
it difficult to serve under their new chairman, but future new blood at the KCRC
may simply adapt themselves to their dominating chairman by keeping quiet even
when they are supposed to speak their minds. Mr Tien cannot be blamed for not
going far enough - he is in danger of going too far. [Source:
SCMP, 23 May 2002] |  |
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