Author: MIL-OSI Publisher

Source: Hong Kong Government special administrative region

​Following is a question by the Hon Chan Siu-hung and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (July 2):

Question:

It is learnt that public works expenditures involving infrastructure, healthcare, education, housing, and so on account for a substantial proportion of government spending. However, there are views pointing out that the model of division of labour in which policy bureaux or government departments, as “users”, only need to specify the requirements and functions during the planning stage of a project, leaving the subsequent processes such as design and construction to be spearheaded by technical departments like the Civil Engineering and Development Department or the Architectural Services Department, is prone to result in user departments lacking awareness of project budget control and losing sight of cost-effectiveness, whereas the technical departments may need to adopt more costly building designs, methods, or materials, among others, in a bid to meet the individual requirements of user departments, hence driving up the cost of works even at the inception stage (i.e. the “upstream stage”) of the project. Therefore, various government departments should shift their mindset towards upholding an “awareness of being property owners” to take the lead in formulating a reasonable budget right at the early stage of project planning and strictly monitor its implementation. In this connection, will the Government inform this Council:

(1) whether it will consider strengthening various government departments’ awareness of being property owners, with a view to exercising stringent control over the estimates of expenditure at the upstream stage of public works projects; if so, of the details; if not, the reasons for that;

(2) of the strategies and specific measures implemented by the Project Strategy and Governance Office under the Development Bureau at various stages (including upstream, midstream and downstream) of public works to reduce project cost; whether an assessment has been conducted on the respective effectiveness of these strategies and measures; and

(3) whether it has drawn on the cost control measures adopted by the Mainland and various places in the world at the upstream stage of public works; if not, of the reasons for that; if so, the details, including whether such measures encompass a concept similar to the awareness of being property owners?

Reply:

President,

The Development Bureau (DEVB) established the Project Cost Management Office in 2016 and upgraded it to become the Project Strategy and Governance Office (PSGO) in April 2019 for formulating and implementing strategic initiatives and enhancing capabilities in cost surveillance and project governance to public works projects. On monitoring project estimates of public works, there is a set of stringent vetting mechanisms in place. While not compromising the functionality, quality and safety of works, the PSGO, as an independent third party, participates in project cost vetting from project inception stage in accordance with the “fitness-for-purpose and no frills” principle, and will follow up on project development and design optimisation and continuously monitor the performance of the projects during construction stage, and implement suitable measures for cost saving.

Our responses to the three parts of the question are as follows:

(1) At different project implementation stages, the works departments have been maintaining communication with the project proponent policy bureaux, providing advice to the project proponent policy bureaux on project planning and design, cost estimation, progress, etc. In addition, senior management of project proponent policy bureaux participated in the project management and leadership development programme under the Centre of Excellence for Major Project Leaders under​ the DEVB to reinforce and strengthen their understanding of project cost management and ensure that public funds are used properly. To further enhance capabilities in cost surveillance and project governance, the DEVB is working with the Financial Services and the Treasury Bureau to study on optimising the preparatory and conceptual work before project inception, with emphasis on strengthening the review of site selection, usage mix, scale, design, implementation programme, etc, by the project proponent policy bureaux and user departments. This will help the project proponent policy bureaux and user departments to comprehensively evaluate the cost-effectiveness of different implementation proposals with the “ownership” mindset, so as to formulate practical and cost-effective proposals. By planning ahead the overall estimates before project inception, the project cost-effectiveness can be further enhanced. We are currently formulating relevant details and guidelines, with the relevant measures planned to be implemented within this year.

(2) The PSGO vigorously scrutinises cost estimates of public works projects. During the project inception stage, we also examine the technical feasibility statement submitted by the works departments to establish the technical feasibility of the project and review the preliminary cost estimate and cash flow requirements.

During the design stage, we liaise with project proponent policy bureaux and user departments to enhance project cost-effectiveness, reduce cost and minimise risk of cost overrun through design optimisation by means of exploring different design options, construction methods and procurement models. We also carry out benchmarking with costs of other similar projects and make reference to the prevailing market situation, to ensure that the project estimates are reasonable. Furthermore, the Government adopts parallel tendering before submitting funding application of the projects to the Legislative Council so as to accurately reflect the tender prices in the approved project estimate for better financial management of the projects to reduce the risk of cost overrun.

During the construction stage, the DEVB regularly conducts high-level meetings with works departments, complemented with the established Integrated Capital Works Platform, enabling management of different departments to grasp the real-time performance of each project, closely monitor the implementation programme of projects and provide timely intervention so as to mitigate the risks of project cost overrun and delays. At the same time, the PSGO also examines major variations in projects during the construction period and provides independent advice to works departments to ensure the cost-effectiveness of the major variations.

Since its establishment, the PSGO has scrutinised more than 540 capital works projects, and successfully saved about $190 billion (about 16 per cent) in construction cost out of the original estimate of about $1,200 billion proposed by the project proponent policy bureaux.

In addition, the overall cost management performance of the Capital Works Programme has all along been well performed. In the past ten years, there were 575 Category A projects approved by the Finance Committee of the Legislative Council, and so far only 15 projects required budget increase. Besides, in the past ten years, the total expenditure of the 510 Category A projects with their final accounts settled (including expenditure of the additional funding) was about 90 per cent of the total original approved project estimates.

The DEVB has completed the strategic study on relatively high construction costs in Hong Kong. We will progressively launch the relevant cost control measures along the following four directions, which includes (i) optimising the project procurement model, (ii) reviewing the design standards and requirements, (iii) applying advanced technologies and construction methods, and (iv) streamlining the approval process, once they are ready so as to reduce the construction costs.

(3) The Government has been liaising and actively exchanging project management experience with other authorities, including the Mainland, Singapore and the United Kingdom, to enhance the project delivery capabilities and performance. For example, the DEVB signed the Letter of Intent on Strengthening Guangdong-Hong Kong Cooperation in Construction and Related Engineering Sectors with the Department of Housing and Urban-Rural Development of Guangdong Province to deepen the co-operation in construction and engineering sectors between Guangdong and Hong Kong. We also signed a Memorandum of Understanding each with the Centre for Public Project Management of the Ministry of Finance of Singapore and the Infrastructure and Projects Authority, part of the Cabinet Office and HM Treasury of the United Kingdom, in December 2022 and February 2023 respectively. The DEVB also organised the Project Cost Management Forum to allow local and overseas industry leaders to exchange views and share experiences regarding project cost control. Among them, we make reference to the process and experience of implementing projects in the Mainland, as well as their practices for optimising construction programme. In addition, we understand that the Singapore government is involved in the upstream process of project planning to review the scope, design and cost reasonableness of the projects, and enhance the cost-effectiveness of the projects by revising the scope of the projects or optimising the design. We will continue to make reference to the experience of project cost control in different places and formulate comprehensive and systematic measures to manage project costs.

Source: Hong Kong Information Services

The Transport & Logistics Bureau announced today that the Southbound Travel Scheme is targeted to be launched in November.

The automated carparks of the Airport Authority at the Hong Kong-Zhuhai-Macao Bridge (HZMB) Hong Kong Port form part of the Southbound Travel Scheme, providing “park and fly” arrangements before the Hong Kong control point, while Guangdong vehicles entering into the urban area are required to undergo vehicle inspection and other procedures.

Secretary for Transport & Logistics told reporters this afternoon that the target is to achieve simultaneous implementation of the entry of Guangdong vehicles into Hong Kong and the parking of the vehicles in the Airport Authority’s automated car park.

Ms Chan noted the simultaneous implementation of both parts of the scheme will be in November, adding that the exact timing will be subject to follow-up discussions between the Hong Kong and Guangdong authorities.

The Airport Authority’s “park and fly” carpark has 1,800 spaces and it has developed a booking system. For entry into the urban area, it will start with a 100 daily booking quota to test the system and procedural arrangements.

From now till November, the governments of Guangdong and Hong Kong will actively formulate the arrangements for the Southbound Travel Scheme in a prudent and orderly manner, including management arrangements, system interface, construction works, facilitation measures, port clearance, monitoring measures, insurance arrangements, publicity work and full-scale drills.

Source: Hong Kong Government special administrative region

​The Hong Kong Special Administrative Region Government today (July 2) announced the policy direction of Southbound Travel for Guangdong Vehicles (the Southbound Travel Scheme).

The Southbound Travel Scheme is an important measure to promote the facilitation of the flow of people and vehicles between Hong Kong and the Mainland as well as the transport and logistics development through the study and formulation of transport policies between Hong Kong, Macao and the Mainland, thereby duly implementing the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area as well as the requirements of relevant documents of the Central Government. With the agreement of Guangdong and the strong support of the Central Government, Guangdong and Hong Kong have been discussing and taking forward the policy through the task force for collaboration on Guangdong-Hong Kong transportation, and reached a consensus on expediting the implementation of the policy of the Southbound Travel Scheme. 

Source: Hong Kong Government special administrative region

Following are the remarks by the Secretary for Transport and Logistics, Ms Mable Chan, at a media session on the Southbound Travel for Guangdong Vehicles today (July 2):

Reporter: You mentioned that the initial daily quota for Guangdong cars to enter Hong Kong urban area will be 100 and will increase gradually. I wonder how you come up with that number? Will there be a cap for the quota given the capacity of car parking spaces in Hong Kong? How will the Government ensure that there are enough parking spaces for those cars? Secondly, regarding road safety, will Guangdong drivers be required to take any mandatory training or test to familiarise themselves with Hong Kong’s driving rules or regulations? Will they be penalised for any violation? Finally, you mentioned that there will be vehicle examinations in Mainland before those cars can enter Hong Kong, can you elaborate on the roles of Hong Kong authorities in those examinations and what kind of examinations will be conducted?

Secretary for Transport and Logistics: As I have mentioned just now, today’s announcement covered the entry of Guangdong vehicles to Hong Kong. It comprises two parts. The first part is regarding the parking of vehicles in the automated car park organised and arranged by the Airport Authority Hong Kong (AAHK) and the automated car park is situated at the artificial island of the Hong Kong-Macao-Zhuhai Bridge BCP (Boundary Control Point) area. That part will allow Guangdong vehicles to be parked and facilitate their visitors to transit via our Hong Kong International Airport (HKIA).

As for the part regarding the entry of Guangdong vehicles into the Hong Kong territory, we would like to advance the implementation so that we can achieve a simultaneous implementation, i.e. we will allow and facilitate the application by Guangdong vehicles for both parts, including the part for entry into the Hong Kong territory. Given that the entry of Guangdong vehicles into the Hong Kong territory will require vehicle examinations and also application for the date and time to enter the Hong Kong territory, this will inevitably involve some time for processing, so the implementation and the entry of vehicles into the automated car park organised by the AAHK will be earlier. As for application for the entry of Guangdong vehicles into the territory, due to the need for them to go through various procedures, we hope that we will advance and streamline. Hopefully before the end of this year, they will be able to enter into the Hong Kong territory. We would like to try out our system’s various procedures and make sure that the implementation is smooth and organised. We would also monitor the implementation situation, the reaction of the society, the community and also the user experience so that we will map out our roadmap for the gradual implementation and increase of the daily entry number. Although we start small, we would like to make an early head-start so that we have a firm and useful basis for us to advance quicker and on a larger scale.

As for the requirements for the vehicle inspection, basically the entry of this kind of Guangdong vehicles, they will have to follow the requirements under the Hong Kong law. The Transport Department has a series of requirements regarding the vehicle type and vehicle conditions. We will facilitate and arrange the vehicle inspection in the Guangdong Province so as to facilitate that all the vehicles, which have applied for the Scheme, will go through all the necessary requirements for vehicle inspection. As for the individuals, like the drivers of these Guangdong vehicles, they are required to hold valid driving licence in Guangdong and Mainland area. In other words, they are required to undergo very serious and robust procedures and checking as regards their capability to drive their own cars. The Transport Department will also discuss with the Guangdong authorities and map out detailed requirements and procedures so as to uphold our requirements as well as to facilitate such kind of drivers to come to Hong Kong and get the necessary driving permits in order to allow their cars to be driven into the Hong Kong territory.

Reporter: Can you please clarify whether the Government will surely launch or seek to launch the Scheme on a certain date in November and drivers from Guangdong can submit their applications? Given the Bureau has been criticised for delaying the launch quite a few times, can you give us a date? Secondly, does one quota mean one vehicle on the road for the Southbound Scheme? Given the Northbound Scheme has a daily quota of 500, but we have observed more than 500 vehicles at the road crossing border. Any difference between the two in terms of application? Have you estimated how many vehicles will be on the road daily when the Scheme is launched?

Secretary for Transport and Logistics: I would like to stress that it is our target and our aim to achieve simultaneous implementation of the entry of Guangdong vehicles into the Hong Kong territory and the parking of the vehicles in the HKIA automated car park. The simultaneous implementation of both parts of the Scheme will be implemented in November. As regards the exact timing, this will be an area subject to our detailed follow-up discussion between the Hong Kong and Guangdong authorities. As regards the number of the vehicles on the road, those vehicles parked into the HKIA automated car park as the Executive Director, Mr Yiu, just mentioned, there will be a total capacity of 1 800 car parking spaces and these car parking spaces are arranged and organised under an automated car park system which gives the efficiency and the certainty for the Guangdong drivers to park their vehicles. The actual number for admission of the parking of vehicles on a daily basis will of course be evaluated and assessed based on the average number of days of stay of these vehicles in the car park. We presume that will be reflected in their travel pattern when they take their transit arrangement in the HKIA. As regards the entry of the Guangdong vehicles into the Hong Kong territory, we will actively discuss with the Guangdong authorities in order to map out the exact number of stay and the duration of stay for these Guangdong vehicles in Hong Kong. Our current thinking is to allow them for a stay of three to a few days. This number is actually based on our assessment of our capacity and also our wish to allow these Mainland residents using Guangdong registered vehicles to stay in Hong Kong so that they can enjoy a full stay of experience in Hong Kong, they can go and visit different tourist spots, they can buy things, they can go to shopping malls and they can also participate in different conferences and activities in Hong Kong. But in any event, we will be flexible and we hope that the number of stay can enable them to have a good experience in Hong Kong.

(Please also refer to the Chinese portion of the remarks.)

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

     The Transport Department (TD) today (July 2) said that, in view of special marine transport measures and ferry service adjustments tomorrow morning (July 3), it has steered and strengthened relevant public transport services, including ferry, bus and the Tung Chung Line and Tuen Ma Line MTR services, to ease the passenger flow during peak hours. The TD urged members of the public, especially residents of outlying islands, to plan their trips in advance and allow sufficient time for commuting to work or school.
 
     From about 7.20am to 9.50am tomorrow, a total of nine outlying island ferry service routes will be suspended gradually, namely routes operating between Central and Cheung Chau, Mui Wo, Peng Chau, Yung Shue Wan, Sok Kwu Wan, Discovery Bay and Ma Wan; between Aberdeen and Yung Shue Wan via Pak Kok Tsuen; and between Aberdeen and Sok Kwu Wan (via Mo Tat).
 
(1) Individual ferry route services to be strengthened in the morning
 
     To expedite the dispersal of passengers during peak hours, ferry operators will strengthen services on individual routes tomorrow morning, including:
 

• Central – Cheung Chau: (from Cheung Chau) one additional ordinary ferry sailing at 7am, an additional fast ferry sailing at 7.15am, and advancing the sailing at 7.45am to 7.25am;
• Central – Yung Shue Wan: (from Yung Shue Wan) one additional ferry sailing at 7.10am;
• Central – Peng Chau: (from Peng Chau) one additional ferry sailing at 7.10am;
• Mui Wo – Discovery Bay (via Peng Chau): two additional ferry sailings from Peng Chau to Discovery Bay at 7.30am and 8am;
• Aberdeen – Sok Kwu Wan (via Mo Tat): (from Sok Kwu Wan) advancing the scheduled sailings to 5.40am and 6.50am; and
• Ma Wan – Central: (from Ma Wan) advancing the sailing at 8am to 7.50am.

 
(2) Free of charge special outlying island ferry services
 
     In addition, the operators will provide the following free special outlying island ferry service routes tomorrow morning, comprising eight round trips. Passengers can transfer to the MTR Tuen Ma Line or other road-based transport mode at Tsuen Wan West Station, or transfer to Residents’ Services at Discovery Bay to Tung Chung or Sunny Bay and other destinations:
 

• Cheung Chau – Tsuen Wan West: departing from Cheung Chau at 7.40am and departing from Tsuen Wan West (Tsuen Wan Ferry Pier) at 8.40am;
• Cheung Chau – Discovery Bay: departing from Cheung Chau at 8.15am and departing from Discovery Bay Ferry Pier at 8.55am;
• Peng Chau – Tsuen Wan West: departing from Peng Chau at 8.40am and departing from Tsuen Wan West (Tsuen Wan Ferry Pier) at 9.20am;
• Yung Shue Wan – Tsuen Wan West: departing from Yung Shue Wan at 8.40am and departing from Tsuen Wan West (Tsuen Wan Ferry Pier) at 9.30am;
• Yung Shue Wan – Discovery Bay: departing from Yung Shue Wan at 8.30am and departing from Discovery Bay Ferry Pier at 9.10am;
• Ma Wan – Tsuen Wan West: departing from Ma Wan at 8.10am and departing from Tsuen Wan West (Tsuen Wan Ferry Pier) at 8.30am; and
• Discovery Bay – Tsuen Wan West: departing from Discovery Bay at 7.45am and 8.15am; and departing from Tsuen Wan West (Tsuen Wan Ferry Pier) at 8.20am and 8.50am.

 
(3) Bus services to be enhanced
 
     At the same time, operators will enhance bus services in Mui Wo, Ma Wan and Discovery Bay to ease the passenger flow, including:
 

• Enhancing service between Mui Wo Pier and Tung Chung Station (New Lantao Bus route No. 3M);
• Enhancing service between Ma Wan (Tung Wan Bus Terminus) and Tsing Yi Station (Residents’ Service route No. NR330);
• Operating free bus service from Ma Wan to Central Ferry Pier No. 2;
• Strengthening service between Discovery Bay/Discovery Bay North and Sunny Bay (Residents’ Service route No. DB03R/DB03RP);
• Operating special service from Discovery Bay Kaito Ferry Pier (Nim Shue Wan Landing Steps) to Sunny Bay (Residents’ Service route No. DB03R special service);
• Operating free bus service from Discovery Bay Kaito Ferry Pier (Nim Shue Wan Landing Steps) to Central Ferry Pier No. 3 to pick up kaito passengers from Peng Chau to Discovery Bay for urban areas; and
• Operating free bus service from Discovery Bay to Central Ferry Pier No. 3 and Kowloon Station.

 
(4) MTR services to be enhanced
 
     The MTR Corporation Limited (MTRCL) will strengthen services on the Tung Chung Line and Tuen Ma Line tomorrow. For the Tung Chung Line, special short-haul services will operate from Sunny Bay Station to Hong Kong Station around 8am during morning peak hours. Services between Hong Kong Station and Tsing Yi Station will be strengthened from around 8.30am to 9am. As for the Tuen Ma Line, spare trains will be on standby during morning peak hours, for taking passengers from Tsuen Wan West Station to Hong Kong Station via Nam Cheong Station of the Tung Chung Line if needed. The MTRCL will also deploy additional staff to busier stations to facilitate passenger flow and assist passengers.
 
     Details of the outlying island ferry service adjustments and special public transport service arrangements (including free special ferry services) are set out in the Annex.
 
     The TD has collaborated with the Islands District Office, the Tsuen Wan District Office, relevant District Services and Community Care Teams of Islands District and Tsuen Wan District, as well as ferry and road-based public transport operators over the past few days to enhance information dissemination through websites, mobile applications, notices at piers and onboard as well as district networks to inform passenger on the above arrangements.
 
     The TD’s Emergency Transport Co-ordination Centre will operate round the clock to closely monitor the traffic conditions and public transport services across the territory including districts concerned. Members of the public, especially residents of outlying islands, are urged to pay heed to the latest traffic news through radio and television broadcasts, the TD’s website (www.td.gov.hk) and the HKeMobility mobile application.

Source: Hong Kong Information Services

The Government today announced that Chief Executive John Lee has appointed Dr Cecilia Fan as Under Secretary for Health to succeed Dr Libby Lee. Dr Lee has tendered her resignation and will leave her post on July 14, while Dr Fan will assume the post of Under Secretary for Health on the same day.

Secretary for Health Prof Lo Chung-mau welcomed Dr Fan to the Health Bureau, saying he looked forward to jointly promoting healthcare reform and innovation in Hong Kong as well as improving and protecting public health with her.

He said: “Dr Fan has extensive experience in public health management, and participated in the co-ordination of anti-epidemic and disaster relief efforts on multiple occasions, receiving commendations from the Chief Executive and the National Health Commission and demonstrating the leadership and adaptability skills necessary to promote reform.”

Dr Lee will join the Hospital Authority to assume the post of Chief Executive on August 1.

Prof Lo thanked Dr Lee, noting she has served as Under Secretary for almost three years and has showcased her excellent leadership, presentation and interpersonal skills.

“She also has a thorough understanding of the challenges faced by the healthcare system and the strategies on a macro level and will surely lead, in her new capacity, the Hospital Authority to drive reform and innovation, enhancing public healthcare services.”

Incumbent Hospital Authority Chairman Henry Fan has also been reappointed for a term of one year with effect from December 1.

Prof Lo added: “I trust that the Hospital Authority, under the leadership of Mr Fan and Dr Lee, will further take forward the relevant work in the future to ensure that the public healthcare system will provide the public with healthcare services of higher quality, safety and effectiveness.”

Source: Hong Kong Information Services

The value of total retail sales in May, provisionally estimated at $31.3 billion, was up 2.4% compared with the same month in 2024, the Census & Statistics Department announced today.

After netting out the effect of price changes over the same period, the provisional estimate for the month was 1.9% higher year-on-year.

Of the total retail sales figure for the month, online sales accounted for 8.3%. Provisionally estimated at $2.6 billion, the value of online retail sales increased 0.3% compared with a year earlier.

Meanwhile, the value of sales of “other consumer goods not elsewhere classified” increased by 8.9%.

There were also increases in the value of sales in the following categories: commodities in supermarkets (+1.3%); apparel (+0.4%); food, alcoholic drinks and tobacco (+2.8%); commodities in department stores (+6.3%); medicines and cosmetics (+8.7%); electrical goods and other consumer durable goods not elsewhere classified (+0.9%); motor vehicles and parts (+2.7%); books, newspapers, stationery and gifts (+1.6%); and optical items (+1.4%).

By contrast, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 3.2% for the period. Also down were sales of fuels (-6.9%); footwear, allied products and other clothing accessories (-0.1%); furniture and fixtures (-12%); and Chinese drugs and herbs (-2.2%).

The Government said that retail sales performance saw improvement in May. While the retail sector continues to adapt to the changes in consumption patterns, the Government’s proactive efforts in promoting tourism and mega events, in tandem with the increase in employment earnings and sustained steady growth of the Mainland economy, will help bolster consumption sentiment and support the consumption market.

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Edward Leung and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (July 2):

Question: