Mr President,

The Works Bureau (WB) is responsible for formulating policies on public works, and for ensuring that the Public Works Programme (PWP) can be delivered effectively. The Bureau is also responsible for the overall co-ordination of the Airport Core Programme (ACP) through the New Airport Projects Co-ordination Office (NAPCO). Policies on slope safety and waterworks are also formulated by WB.

Public Works Programme

Construction of the massive ACP projects will be completed within this year. While expenditure on ACP projects has been declining, spending on non-ACP public works projects has been steadily increasing.

We will continue to invest heavily on the development of infrastructure in the next 4 to 5 years. Total capital expenditure, including investment in new railway lines, will reach $235 billion. This amount is much greater than the $155 billion we spent on the ACP projects.

These capital projects will not only improve the existing transport facilities and open up more land for housing development, but also provide ample job and business opportunities.

Expenditure of Public Works

Last year, we successfully reduced under-expenditure from 36% in 1991/92 to about 6% in 1996/97. In this financial year, we have further reduced the under-spending on PWP to around 5%. These figures exclude the purchase of properties and land acquisition.

In the next financial year, we estimate that the expenditure on public works will be maintained at a level comparable to that of last year. We budget to spend about $22.8 billion and start 93 new PWP projects.

Major Projects

We will undertake a number of major projects. These include Route 10 - North Lantau to Yuen Long; Route 9 - Tsing Yi to Cheung Sha Wan; South East Kowloon Development; Central-Wanchai Reclamation; Central-Wanchai Bypass; Island Eastern Corridor Link; Additional treatment and water transfer facilities for the metropolitan area and north-eastern New Territories.

Project Management

In order to minimise delays on new projects, we will enhance the existing mechanism to monitor more closely the progress in project planning, in particular on the preparation and submission of funding proposals. We will also strengthen the monitoring of planning activities before the construction stage and conduct detailed assessment on the risks leading to project delay.

We plan to set up a Legal Adviser's Division in the Bureau so as to retain legal professionals with experience in contractual matters to handle disputes and compensations arising from government works contracts. This would help improve the current contract terms and procedures for resolution of disputes. The Establishment Sub-committee has already given its support for the proposal.

Infrastructural Support for Housing Developments

To tie in with the long-term housing supply policy, we have taken various measures to ensure that works for the development of infrastructure related to housing supply can proceed smoothly.

The Bureau has already deployed resources to set up a task force in February 1998. This task force is responsible for the overall co-ordination of infrastructure development and in particular those infrastructure projects related to the housing development programme. It also monitors the progress of these projects.

In addition, we have introduced a system for the prioritisation of projects which require land acquisition. This will speed up the land formation works associated with the housing development programme.

Tasks of the Works Departments

The Works Departments have implemented various new PWP projects to improve the quality of life. In the last few years, the Works Departments have also made significant improvements in their management culture as well as in their monitoring mechanism.

New Airport Projects Co-ordination Office (NAPCO)

The new airport at Chek Lap Kok will start operation on 6 July 1998. The related works are scheduled for completion in April while the Airport Railway will be completed by the end of June to tie in with the opening of the new airport. NAPCO, as in the past, will continue to monitor the progress of the ACP projects to ensure their timely completion within budget.

Architectural Services Department (Arch SD)

Arch SD is responsible for carrying out the large-scale school construction projects and the complex School Improvement Programme (SIP). We expect that 72 new whole-day primary schools will be built before the commencement of the 2002/03 school year. We will implement the school expansion and improvement projects for over a thousand government and aided primary and secondary schools under eight phases of SIP. We have commenced the first 3 phases of the Programme and are currently undertaking improvement works for about 600 secondary and primary schools.

Arch SD also undertakes the construction of a number of major projects including the Sheung Shui Slaughterhouse, North District Hospital and Tseung Kwan O Hospital.

Drainage Services Department (DSD)

In order to complete the High Priority Programme projects and achieve the target of improving the water quality in the Victoria Harbour, DSD is closely monitoring the progress in the works of the Strategic Sewage Disposal Scheme Stage I and the 6 Sewerage Master Plans (SMPs). Projects under other SMPs have also been commissioned as planned in other parts of Hong Kong.

The Sewage Services Trading Fund will be closed on 31 March 1998. Starting from the next financial year, the recurrent expenditure on the provision of sewage services will be charged under "Head 39 - DSD". All income from sewage charges will go into the General Revenue Account.

Civil Engineering Department (CED)

The Geotechnical Engineering Office (GEO) of CED, which is in charge of slope safety, is implementing the "Accelerated Landslip Preventive Measures" Programme, and proceeding with full speed to deal with slopes affecting schools. GEO currently works with the Buildings Department to enforce the newly enacted "Buildings Ordinance" which requires private owners to check and maintain underground water pipes which may affect slope safety.

We have completed the registration of some 50,000 man-made slopes by end-1997. We expect that the new Catalogue of Slopes, on completion within this year, will contain data on some 60,000 slopes. We have drawn up new strategies to deal with the new Catalogue. These include implementing a new 10-year Landslip Preventive Measures Project and strengthening slope maintenance works in various Government departments.

Highways Department (HyD)

HyD will engage consultants to introduce a project management system in the department. Through the application of enhanced computer system, the progress of major road projects such as Route 9 and Route 10 will be monitored effectively.

To stabilise road side slopes of small and medium scales, HyD will, based on previous experience, adopt special engineering designs to incorporate measures for slope upgrading.

Territorial Development Department (TDD)

TDD will continue to develop new towns and to form land in urban strategic areas for the purposes of commercial and residential developments, transportation, as well as recreational and community facilities. The department is currently conducting various planning and engineering consultancy studies in strategic growth areas in order to increase additional land supply and to provide complementary infrastructural facilities for the overall development in Hong Kong. The studies include preparation of the preliminary strategic development plans for areas in North East New Territories and North West New Territories.

Water Supplies Department (WSD)

Subsequent to our discussions with the Guangdong Authorities, the latter has undertaken to introduce measures to improve the quality of raw water supplied to Hong Kong. These measures include the enforcement of legislative control on developments within the catchment areas, protection of the raw water conveying system, and the construction of sewage treatment plants. In January this year, a large scale project on the provision of biological treatment facilities in Shenzhen Reservoir commenced with the aim of reducing the nitrogen contents in raw water.

With the implementation of efficient management initiatives, WSD has succeeded in cutting expenses. In 1996/97 and 1997/98, the department has kept the growth of operating expenses and staff emoluments within inflation.

Electrical and Mechanical Services Department (EMSD)

Last year, the Electrical and Mechanical Services Trading Fund achieved a financial performance over and above the original target. The Fund will continue to aim at introducing improvement measures to cut costs and raise productivity.

Conclusion

I have briefly introduced the major responsibilities of the Works Bureau and the Works Departments. My colleagues and I will be happy to answer any questions raised by Members.