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Following is a speech by the Secretary for Works, Mr Lee Shing-see, on the motion of expediting the implementation of public works projects moved by the Hon Ng Leung-sing in the Legislative Council this afternoon (February 28) :
Madam President,
I have listened carefully to Members' remarks and appreciate the helpful suggestions that Members have made. I would like to confirm that the most important objective of our capital works programme is to provide essential public infrastructure to meet the needs of the community and to support Hong Kong's continuous development. It is of course a fact that Government's investment in such works provides many business opportunities for local enterprises and creates employment in the construction and other sectors of economy. We therefore recognize and respect the importance of the relationship between our capital works programme, the overall economy of Hong Kong and people's livelihood.
Let me assure Members that our commitment to the efficient and effective delivery of capital work projects is beyond question. We fully recognize the need to maintain a level of investment in capital works which will meet the demands for community facilities and public infrastructure to serve a growing and changing population. We therefore accord a high priority to the provision of facilities to enhance the environment, as well as educational, transport, social, cultural and sports facilities and adequate serviced land for housing development. The Government at all times monitors the need for such facilities and takes steps to implement projects in line with the changing needs of the community and our priority policy objectives.
Currently, the capital works programme consists of some 1500 projects with an estimated total value of some $300 billion. Some 300 additional projects are under active planning. We expect the total value of these to exceed $150 billion. To deliver an annual programme of such magnitude requires careful and comprehensive planning. There should be no underestimation of the magnitude of such a task or any misunderstanding that all projects under planning can be taken forward quickly. Bringing new projects to the construction stage involves a number of inter-related activities, some of which are complex and time consuming. For a major infrastructure project, the period from initial concept to commencement of construction can take 7 to 10 years. This compares to a lead time of some 5 to 7 years in the past.
There are a number of reasons for this. In recent years, members of the community and interest groups rightly demand greater participation in the planning of capital works projects, and our works departments are required to carry out wide ranging public consultation during the planning stage of such projects. This includes presentations to District Councils, to different Panels of this Council and meetings with a variety of professional organizations and individuals. A good example of this is the heightened awareness of the environmental impact of works projects. In line with the requirements of the Environmental Impact Assessment Ordinance (which took effect in 1998), we have been carrying out stringent Environmental Impact Assessments for all designated projects to ensure that the impact of our works programme is environmentally acceptable. We also carry out other kinds of impact assessments such as traffic impact assessments to ensure that a specific project will not have an adverse "spill-over" effect in relation to traffic flows. All of this takes time.
I can fully understand Members' wish to see an expedited works programme which would provide increased job opportunities and help boost the recovering economy. The Government also share the same aspirations. We constantly strive to devise and implement any measures which would help achieve this objective. For instance, we have introduced a land acquisition prioritization exercise which ensures that the timing of land acquisition is synchronized with construction programmes for works projects and allows for flexibility in resource allocation in line with changes in project programmes. Where feasible, certain pre-tender planning and administrative measures necessary to bring a project to the construction stage will be carried out as "in parallel" rather than "as sequential" activities e.g. integrated planning and engineering studies for strategic growth areas. Where appropriate, and on a selective basis, we shall also adopt accelerated procedures for the selection of consultants and the tendering of construction works in order to speed up project delivery.
So how about the projects that are due to start in the short to medium term? For the information of Members, the Government spent, on average, about $26 to $27 billion per year over the past five years in planning, designing and constructing capital works projects. We anticipate that our average expenditure in the next five years will be of a similar order but this will depend on a number of variables, such as construction tender prices (these have shown a downward trend in recent years), the pace at which new projects can be upgraded to Category A and the progress of works. Some of these factors lie outside the control of the Government.
As indicated earlier, we have some 300 projects under active planning. This, along with the outstanding commitments on on-going projects should enable us to maintain the current level of investment in capital works projects in the medium term. I feel confident, therefore, there will be ample employment opportunities created in the coming years as a result of our continuing investment in capital works projects. For example, for year 2001, we estimate that we will award more than 230 new works contracts and consultancies, creating more than 20,000 job opportunities. From 2002 onwards, we expect a number of mega infrastructure projects to proceed from the design stage to the construction stage, for example, Route 10 between North Lantau and Yuen Long, Route 9 between Tsing Yi and Shatin, the South East Kowloon Development, Central and Wanchai Development and the Rehabilitation and Replacement of Watermains Works. These projects will provide yet more employment opportunities.
I also note from some Members' speeches that they would like Government to expedite works projects identified but not funded by the former Provisional Municipal Councils. These projects became the responsibility of Government following the dissolution of the two Councils in January last year. As Members will be aware, the Secretary for Home Affairs, the Secretary for the Environment and Food, and the two departments involved, Leisure and Cultural Services Department and the Food and Environmental Hygiene Department have been actively reviewing each of the projects and, subject to the normal resource allocation mechanism, will inject them into the Government's capital works programme when the scope and technical feasibility are fully developed. I understand that a sub-committee has been formed by the LegCo to monitor the status of the projects and progress reports have been submitted to the sub-committee for examination by Members. The District Councils have also been briefed on the progress of the various projects. At as today, 10 of the outstanding projects have already been upgraded to Category A. The remaining projects are at different stages of planning and will be considered for upgrading in due course. I have to point out that many of those outstanding projects were at a very preliminary stage when they were taken over by Government and their scope and estimated costs were not fully identified. It will be some time before the various projects are ready for construction but the relevant bureaux and departments will continue to work as expeditiously as possible in completing the pre-tender planning activities.
Finally, I would like Members to take a broader view of the complexity and size of our capital works investment programme and the challenges in delivering a complex programme of this nature in a timely manner. Given the many variables which can effect the progress of a project both at the planning and construction stages and the time required to ensure quality design and construction, compliance with statutory requirements and gaining the support of end-users, the process of project implementation cannot be a summary exercise. In fact, it is my view that the delivery of public works programmes in Hong Kong is relatively efficient. I have met many friends from overseas when they visit Hong Kong. All, without exception, have expressed a deep appreciation of our achievements in infrastructure development in recent years. Nevertheless, we will not allow complacency to prevent us from striving to be even more effective in this regard.
Thank you.
End/Wednesday, February 28, 2001
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