ENG-1994 — Page 335

THE AIRPORT CORE PROGRAMME

Management and Cost Control

Following the establishment of an overall strategy on the scope of the ACP, its critical programme objectives and its budget, regular reviews were conducted in 1994. The strategy is the basis for the overall programme and its project management system. Fixed-price, lump sum contracts are being used for most projects to minimise risks to the government, especially from inflation and changes in the estimation of quantities.

A cost control system has been introduced for the ACP, laying down procedures for monitoring, scrutinising and controlling costs during the design and construction of the government-funded projects. Early warnings of possible cost increases are reported to the New Airport Projects Co-ordination Office (NAPCO) and relevant department heads. Proposed design changes leading to higher costs have to be fully justified and approved before detailed design can start. This system enables upward trends, which could lead to cost increases, to be identified at an early stage. If cost increases are accepted, offsetting savings are sought in the same or other ACP projects.

Government works departments and other participants, such as the PAA, MTRC and WHTC, have full responsibility for their own project-level planning, execution, control and management. They are required to complete projects on time and within budget, and to report progress and co-ordinate their work through NAPCO.

NAPCO's job is to ensure compliance with ACP plans, programmes and budgets, and to act as a focal point for the management of project interfaces and resolution of problems. It is made-up of staff from the government and the ACP project management consultant.

In addition to the cost control systems, its highly competitive tendering system has also enabled the government to obtain value for money on the ACP contracts.

Protecting the Environment

Environmental impact assessment (EIA) studies have been undertaken for each of the ACP projects, sometimes at both the feasibility and detailed design stages, as an integral part of project planning and design. These studies have generally shown that, with suitable mitigation measures in place, the projects will be environmentally acceptable when they are built and operating. Such measures include the installation of noise barriers and enclosures and the glazing of windows to reduce noise exposure from construction sites and future highway and railway operations; and general construction site housekeeping to minimise dust. The island being formed at Chek Lap Kok for the airport platform has been designed to allow tidal water to flow between the airport and the North Lantau coastline, flushing partially-enclosed areas of water to the east. Most of the natural coastline to the west of Tung Chung will be retained. Several mitigation measures have been initiated for the loss of wildlife habitats along North Lantau and at Chek Lap Kok. These include ecological studies of local wetlands, seagrass beds and mangrove communities; the relocation of a colony of Romer's Tree Frogs from Chek Lap Kok; and the replanting of mangrove communities and woodlands.

Extensive environmental monitoring and audit programmes are being put in place by the respective project offices to ensure the acceptable environmental performance of individual projects. To supplement the efforts of the project offices, an environmental project office for the West Kowloon project area was established by the Environmental Protection Department (EPD) in 1992. A similar office was set up for the Kwai Chung and Tsing Yi

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