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LCQ7: Replacement of the air traffic control system
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     Following is a question by the Hon Ronny Tong Ka-wah and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, at the Legislative Council meeting today (May 13):

Question:

     The Civil Aviation Department (CAD) is now working to replace the air traffic control (ATC) system, and the new ATC system is expected to commence operation by the end of 2012.  In this connection, will the Government inform this Council:

(a)  of CAD's specific plans for the procurement of the various components of the new ATC system, and how it ensures that the new ATC system can cope with the continuous growth in air traffic volume, and comply with the standards of the relevant systems of the airports in the Pearl River Delta Region;

(b)  given that PCCW-HKT Telephone Limited has been providing technical operation and maintenance services for the ATC system of CAD since 2006 and is highly conversant with the various specification requirements of the ATC system, what measures CAD has to ensure a level playing field for all bidders to participate in the tendering of contracts for various components of the new ATC system; and

(c)  of the expenditure incurred by CAD on software update for the ATC system in each of the past five years, as well as the relevant estimated expenditure for the coming five years; and given the current economic downturn in Hong Kong, whether CAD will reduce the expenditure on the new ATC system, including deferring certain software updating work?

Reply:

President,

(a)  The planned timetable for the tendering of various components of the new air traffic control (ATC) system of the Civil Aviation Department (CAD) is at the Annex.  It is expected that the entire new ATC system will be installed by end 2012 for testing and commissioning.  In procuring the new ATC system, CAD will ensure that the new system is on par with the most advanced systems adopted globally with much enhanced data transmission, processing and display function.  CAD will also require the new system to provide up to twice the handling capacity of the existing system, thereby meeting the air traffic growth by 2025 as forecast by the Airport Authority.

     To effectively coordinate the air traffic management in the region, CAD will specify the system interoperability requirements in the tender documents of each system component to ensure that the new ATC system will be compatible with other ATC systems in the neighbouring areas.

(b)  To ensure a level playing field for all bidders to participate in the tendering of contracts for the various components of the new ATC system, the tendering will adhere to the Government's basic procurement principles of transparency, openness and fairness.  The tender notices will be gazetted so that any interested organisation can participate in the tendering.  Other tendering procedures will also fully comply with the requirements set out in the Agreement on Government Procurement of the World Trade Organisation.  Moreover, CAD will specify the details of various requirements of the new ATC system, including system functionalities, operations, training, interoperability between system components, commissioning and maintenance etc, as well as the tender assessment criteria in the tender documents. Prospective tenderers may also request CAD to elaborate on the various requirements in writing and to arrange visits to the installation sites so that they can have a clear understanding of the specifications and requirements of the new ATC system.

(c)  The expenditure on the maintenance and updating of the software of the existing ATC system in the past five years is set out below -

  Financial Year      Expenditure on software
                      maintenance and updating
                      (million dollars)
                       
   2004 - 05                   7.9
   2005 - 06                   7.9
   2006 - 07                   7.6
   2007 - 08                   7.9
   2008 - 09                   7.8

     The expenditure is expected to remain at around $8 million a year before the commissioning of the new ATC system.  After the commissioning of the new ATC system, it is expected that the relevant expenditure will be higher than the current level due to the greater complexity of the new system.  The exact amount will depend on the tender outcome of the system components.

     Given that the ATC system adopts the most advanced technology with complex interfaces among different components, an integrated design approach covering both hardware and software is required at the early planning stage to ensure that the new system will have all the key functionalities at the start of operation.  Despite the current economic downturn in Hong Kong, to ensure that the new system can meet the future air traffic demand and support the long-term development of the aviation industry, CAD will not reduce the expenditure on the new ATC system.  As regards software maintenance and updating of the new system, the aim is to ensure that the system can continue to operate smoothly in coping with the latest air traffic flow and ATC requirements.  CAD will make appropriate arrangements in the light of the actual circumstances in the future.

Ends/Wednesday, May 13, 2009
Issued at HKT 12:30

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