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(b) whether there are other reasons for the delay in the project; if so, what those
reasons are;
(c) how much more money the project will cost;
(d) whether the accusation of conflict of interest has been investigated; and
(e) when the project is expected to be completed?
Answer:
Mr President.
The Government was aware of the marble caverns in Ma On Shan Area 90 before the commencement of the housing project. As Area 90 is a Scheduled Area under the Buildings Ordinance, detailed investigations, which covered all six phases of the project, were conducted by geological and engineering sub-consultants engaged by the Housing Department's consultants between 1989 and 1993 in consultation with the Housing Department. The dispute in question relates to the piling contract for Phase 5.
Owing to minor localised subsidence, the piling contractor for Phase 5 has made an allegation that it would be unsafe to carry on with the work. The Housing Department's consultants are firmly of the view that it is safe to continue according to the specialist design of the piling work and the detailed technical requirements specified in the contract. Foundation work was already about seven months behind schedule before the subsidence occurred. The Housing Department's consultants have ascribed the delay to the piling contractor's use of inadequate plant and machinery and insufficiently experienced workers.
It is not possible at this stage to provide an estimate of additional cost for the project since much will depend on how quickly and in what manner the piling work will resume. The contractor is liable for liquidated damages in respect of any delay.
Members of the Housing Authority are required to declare their interests at meetings, including those concerning the appointment of consultants and the award of contracts and consultancies, and to refrain from discussing such matters. requirement has been complied with in respect of this project.
This