TNAG-1415-FCO40-1896-Public-finance-in-Hong-Kong-1985 — Page 197

204.

In reply, the Director of Electrical and

Mechanical Services has stated that he has noted my suggestions which will be taken into account in managing future projects. The Director of Engineering Development has however expressed reservations as to whether the appointment of a single office as the project manager would be of much benefit because, in the case of the Kwai Chung incinerator project, this would not have affected the differences in opinion held by the different offices which caused some delays. The Director expressed the view that the solution lies in better contract documentation and regular inter-departmental meetings at both planning and construction stages, which the Director states the works departments now have. The Director also expressed the view that the question of the appointment of a 'lead' office or department is primarily a policy issue. I have accordingly referred the matter to the Secretary for Lands and Works for his comments and a reply is awaited.

205.

Head 707 New Towns and Public Housing (other than Housing Authority). Tsing Yi development. A contract in the sum of $6.2 million was awarded in March 1980 for the laying of fresh and salt water pipelines to serve major industrial and residential developments on Tsing Yi Island. The works included the laying of 600 mm diameter mild steel watermains and 375 mm diameter asbestos cement watermains along the road reserve of the second carriageway of road TY1 East and the contract was certified as complete in September 1981. In March 1982 a roadworks contract in the sum of $45.7 million was let for the construction of the second carriageway of roads TY1 East and TY3. In June 1982 the roadworks contractor found that in several locations the top of the watermains was exposed during trimming to road formation level and following a survey, it was discovered that over 1,200 metres of the new watermains had been laid without sufficient cover relative to the proposed road levels, thus not giving adequate protection to the pipes. Although it was decided to reduce the cover from the normally acceptable depth of one metre to 0.7 metre, this did not obviate the need for a considerable part of the watermains having to be re-laid to suit the second carriageway level. The re-laying was partly done by the roadworks contractor and partly by the waterworks maintenance contractor. The additional costs including the payment of disruption claims to the roadworks contractor were estimated at $9.5 million. The claims have not yet been finalized but up to mid-September 1985, a total of $6 million has been paid. Whilst the cost of the re-laying work and the claims arising therefrom has been charged to the roadworks project vote, responsibility for the failure to lay the mains to the correct levels in the first place has not yet been accepted by either the New Territories Development Department or the Water Supplies Department.