1
INVESTMENT ESTIMATE
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1
General principle
Two separate investment estimates are made in respect of the proposed Lingding Yang Bridge project : one concerns the bridge section from Zhuhai to the coast of Hong Kong; the other concerns the section within the territory of Hong Kong.
Basis for estimate
The preparation of the investment estimates is based on 7 official documents. Three of the documents were issued by the Ministry of Communications in 1985, 1987 and 1992 respectively and are applicable to the whole country. Two documents were issued by
by the Communications Department of Guangdong province in 1987 and 1991 respectively and are applicable to the whole province. The remaining two were issued by the Zhuhai municipal government in 1992 concerning construction sector information and land price matters.
Labour, materials and associated costs
The basic salary of a production labourer is 108 ¥ per month, but each labourer can also receive 3 additional allowances totalling around 64 per month.
Based on the said official documents, standard costs are set for the unit price and delivery of building materials, staff transport and supervision, equipment and tools, etc. Land resumption and crop compensation as well as removal allowance are set at 30 ¥ per sq.m.
The costs to be spent on conducting researches and experiments and on dredging a navigation channel are estimated to be 8 m V and 2 m ¥ respectively. Overseas inspection and consultancy fees and the procurement of massive engineering equipment are both estimated at a cost of 20 m ¥.
During the construction period, the loan amount will be calculated at 70% of total construction cost while the loan interest is 10% per annum.
Construction cost
The total construction cost (including loan interest) for Revised Option No. 1 and No. 2 will be 9.27 b ¥ and 9.62 b ¥ respectively. If the construction cost for the section within Hong Kong territory is also included, the respective amounts will be increased to 9.65 b ¥ and 9.91 b ¥ respectively. For the Phase 1 construction work, the total cost will be 4.26 b ¥.