Hong Kong's Infrastructure Development - CSE419 Presentation Slides PDF

17/10/2024 Preamble The Hong Kong Polytechnic University Housing, Water Supply, and Transportation are among the important...

17/10/2024 Preamble The Hong Kong Polytechnic University Housing, Water Supply, and Transportation are among the important hardware to support daily living in the city. Likewise, health, education CSE419 - Engineers in Society and social welfare systems will need to be in place to provide the citizens with necessary and quality services. Proper planning, implementation, and effective operation of these systems are the keys to the sustainable Seminar on Representative Engineering Projects: development of the city. Civil Engineers Protect and Transform Lives Visitors to Hong Kong are often amazed by the City’s built environment – small land area that holds large population, efficient transportation Part 1: The Hong Kong Story – rock yields no water system that keeps the city moving, dazzling high density development that stand amidst a well-preserved landscape. From the humble origin of a “barren rock” with only a handful of villagers, Hong Kong has evolved Professor C K MAK into a vibrant metropolitan and a world city. BSc (Eng.) MSc (Urb. Plan.) FICE FCILT FHKIE FHKIHT FHKEng Reviewing Hong Kong's urbanization process would provide useful hints [email protected] to see how engineering projects Have supported the city’s evolution. 17 October 2024 The central question here is the continuous and quality development of our city, and how to over come the development challenges. 1 2 1 2 Seminar Outline In this Seminar, we shall first briefly review the administration of public 1. The Hong Kong story – rock yields no water sector projects. We will then trace the historical and conceptual base of  Engineering Solutions for the Built Environment – Homes for a Million, sustainable development (SD) and will look at the latest situation Water for a Barren Rock, Flood Prevention & HATS, Keeping Our City globally. With reference to a local case (the Lok Ma Chau Spur Line), the moving, ACP, … conflict and debate arising from a cross-boundary railway project is used  Project planning and delivery, NPV Analysis and Illustrations to illustrate the challenges and issues in making appropriate decisions to  Fiscal Policy and Notion of “Affordability” satisfy different preferences and values. 2. Sustainable Development- the Road from Stockholm to Finally, two rather unique engineering projects are presented, which will hopefully enable a deeper appreciation of the role of engineers in Johannesburg society.  1972 Only One Earth, 1987 Our Common Future, 1992 Agenda 21, 2002 WSSD At the Bicentennial Celebration of the Institution of Civil Engineers, ICE  2012 Rio+20, 2000 UN MDGs, 2015 UN SDGs reminded her members, and the engineering profession worldwide, that  Development vs Conservation – the Case of the Lok Ma Chau Spur Line “Civil Engineers protect and transform lives”. This fitting reminder to the engineering community affirmed that civil engineers place the public 3. Representative Engineering Projects – two more cases at heart, and create the environment that enables them to live their lives  Reconstruction in the way they want.  “A Bridge too Far”, or “A Bridge NOT too Far” 3 4 3 4 Public Sector Projects – the Hong Kong Story References R1 – A, B, C and D (Policy Address of 1989, 2007, 2018 & 2022) WS00 - Project Stages & Planning WS01 - Infrastructure Development- the HK Story WS02 - DCF and NPV examples 1. What are these? These are ____________________ 1 5 6 5 6 1  17/10/2024 3. And what about this? This is ________________________________________ 2. What and where were these? These were ______________________________ 2 3 7 8 7 8 1841 HK had a population of about 7,500. “A barren rock with hardly a house upon it”. 4. And what were they working at? Lord Palmerston They were ….. British Foreign Secretary, 1841 4 9 10 http://en.wikipedia.org/wiki/Image:Old_hong_kong.jpg 9 10 Population Growth of Hong Kong (1872 – 1971) Year Total Population Annual Growth Rate (%) 1872 121,985 - 1881 160,402 3.1 1891 221,441 3.3 1901 Note the increase from 7,500 to 121,985 in2.5 368,987 30 years (1841 to 1872) 1911 456,739 2.2 1921 625,166 3.1 1931 840,473 3.0 On Christmas Day 1953, the fire broke out that swept the Shek Kip Mei 1941 1,640,000 Between 1941 and 1956 (WWII), there Squatter Area raged for six hours, burnt 7,000 plus cottages and made 1945 600,000 were only estimated population figures 53,000 people homeless overnight. 1949 1,800,000 1956 2,500,000 The Government (Governor Alexander Grantham) directed the Public Woks Department to construct shelter homes immediately to rehouse the 1961 3,129,648 4.5 victims. It further decided to set aside HKD16 Million to build Resettlement 1971 3,936,630 2.3 House for the people on the 45 acres land previously occupied by the Note also the post war rapid growth in the early 1950’s (1945 to 1956) squatters. (CICNRD), 1974 11 Fan Shuk Ching, The Population of HK, The Committee fro International Coordination of National Research in Demography 12 11 12 2  17/10/2024 Hong Kong’s Post-war Development - the last 70 years 1950’s Public Housing 1960’s 1970’s The Resettlement Program – the Mark I, H-shape 6-storey 1980’s buildings, each had 64 units per floor @120 sq.ft (12 sq.m). Each unit would house 5 people at a monthly rental of HK$14. 1990’s Some 10,000 units were built. (Each adult occupied an average of 2.2 sq.m) 2000’s Between 1954 and 1964, the Government constructed more than 140 Mark I blocks. 2010’s 13 14 13 14 Water shortage in Hong Kong, 1950’s, 1960’s … The East Coffer Dam Site of the High Island Reservoir 15 16 15 16 Water Supply 1963 1968 Water shortage Plover Cove Reservoir 1978 2002 1 Some 7,000 concrete dolosse (dolos, sing.), each 25 tonnes, were cast to become the wave stopper at the protective coffer dam of the High Island 17 High Island Reservoir Water from Dongjiang 18 Reservoir – opened in 1978, with a capacity of 274 million cubic metres 17 18 3  17/10/2024 The Construction of Reservoirs Hong Kong’s Post-war Development - the last 70 years 1950’s Public Housing Dongjiang Water New Resources 1960’s Water Supply, and more Housing The future Total Water Management Sustainable Use of Water 19 20 19 20 Housing Supply  New Town Development Shatin Homes for a Million 1st generation new towns – ST, TW, TM 2nd generation new towns – TP, FL, YL 3rd generation new towns – TKO, TSW, TC White Paper on Public Housing Policy Tseung Kwan O The Government introduced the resettlement program in the early 1950s. By the early 1960s, the number of people living in the resettlement estates totalled 500,000, but more than 600,000 people still lived in squatter huts. In 1972, Governor MacLehose spearheaded the 10-year Housing Program -- the impetus for HK’s New Town Development. The Hong Kong Housing Authority was established to coordinate the program. 21 Tung Chung 22 21 22 Former Industrial Activities in TKO New Town - High-density Residential 2 Development in Tseung Kwan O 23 24 23 24 4  17/10/2024 Tseung Kwan O New Town Cross Harbour Tunnel – launching immersed tube unit 1977 1988 2001 2024 3 25 26 25 26 Cross Harbour Tunnel – launching Cross Harbour Tunnel – opened Aug 1972 immersed tube unit Ir Joseph Lo, Maunsell AECOM 2008 27 28 27 28 Construction of the MTR under the busy public roads in the City’s crowded built environment 4 29 30 29 30 5  17/10/2024 The Hong Kong MTR 1967 - HK MTR Study 1970 – HK MTR Further Study 1973 – Decision to build MTR Initial System (20 km) 1975 - Modified Initial System (MIS)  The Kwun Tong Line (KTL) - 15.6 km - 12 underground stations - 3 elevated stations - HK$ 5.8 Billion - 30 Sep 1979 Opening 35 years later, HKU Station opened in Dec 2014, South Island Line (SIL) in 2016, and SCL in 2022 …. 31 31 32 Shenzhen LOW Lo Wu Keeping Hong Kong Moving -- Railway Development SHENZHEN SHENZHEN LMC Lok Ma Chau Sheung Shui SPECIAL Shekou SHS LO WU ECONOMIC ZONE LO WU FAN SHEUNG SHUI to LOK MA CHAU SPUR LINE Tai Po TIS Yuen Long LOP YUL KSR TWO TAP Between 1994 and 2007, HK completed WEST RAIL (PHASE I) MOS LEO 5 new railway lines as recommended in the Railway Development Strategy. HEO SIH UNI New Territories CHG Ma On HONG LANTAU HONG Shan LANTAU KONG ISLAND KONG FOT ISLAND The railway programme has greatly strengthened HK’s TUM Tuen Mun Sha Tin RAC SHM Tsuen Wan SHT CIO mass transportation1970s network ~ 1980senabling TSW SKS TWH TAW MA ON SHAN to 1913 ~ 1970s STT TWW TAW KWH TAI WAI RAIL LINK the citizens to enjoy very convenient and TSY KWF SHENZHEN SHENZHEN LAK WTS DIH SPECIAL SPECIAL MEF KOT LOF LCK CSW ECONOMIC ZONE LO WU ECONOMIC ZONE LO WU Tseung speedy means of access to different parts of the city. SKM CHH YAO Kwan O SSP NAC PRE MKK KOB POA MTR CLK PEB OLY MOK NTK HAH TSEUNG KWAN O KWT YMT Kowloon LAT TIK EXTENSION KOW JOR HUH TKO YAT WKPT The network continues to expand with new lines and ETS TST TKS FOH HOK NOP QUB TUC SHW SWH TAK CEN TIH Tung Chung CAB HFC extensions of existing lines ADM WAC SKW PENNY'S BAY RAIL LINK TSIM SHA TSUI Lantau Island Hong Kong Island CHW EXTENSION LANTAU HONG LANTAU HONG ISLAND KONG ISLAND KONG 33 RDS 1994 - NEW RAILWAY ROUTE MAP 1989 ~ 1998 2002 ~ 2007 34 33 34 “ … We have a clear vision of (6) BUILDING FOR THE FUTURE: PHYSICAL INFRASTRUCTURE what we are trying to achieve. 78. In the next few years, we will also need to put a great It is a vision that I hope will sustain Hong Kong during the present period deal of effort into building up the physical infrastructure of uncertainty and give us needed for a modern city which is not only home to about all confidence in our ability to overcome 6 million people but also an important regional and whatever problems confront us.” international centre. In doing this, we will take account both of the requirements of Hong Kong itself and of those areas of southern China with which we now have such close economic links. Sir David Wilson, KCMG, Opening Address of the 1989/90 Session of the Legislative Council 11 October 1989 http://www.legco.gov.hk/yr89-90/english/lc_sitg/hansard/h891011.pdf http://www.legco.gov.hk/yr89-90/english/lc_sitg/hansard/h891011.pdf 35 36 35 36 6  17/10/2024 (a) The Airport 79. … Port and Airport 80. After an exhaustive study of the various options, the Government has Development Strategy PADS decided to build a new Hong Kong International Airport at Chek Lap Kok. It will be a two-runway airport built to the most exacting modern standards and able to operate 24 hours a day. When completed, it will be able to handle 80 million passengers a year – over three times the maximum capacity of Kai Tak. Our aim will be to open the first of the two runways by the early part of 1997. http://www.legco.gov.hk/yr89-90/english/lc_sitg/hansard/h891011.pdf 37 38 37 38 The Airport Core Projects (ACP) (1989-1998) Total project cost = HK$155 billions 39 40 39 40 Opening of the Tsing Ma Bridge in May 1997 Between 1989 and 1998, HK completed 10 major infrastructure projects – the Airport Core Programme. These facilities have laid the foundation for HK to move ahead into the 21st Century. 41 42 41 42 7  17/10/2024 Hong Kong’s Post-war Development “Infrastructure development can - the last 70 years bring about huge economic benefits. Both employment 1950’s Public Housing opportunities and wages will increase during the construction 1960’s Water Supply and more Housing stage, and, upon completion, the infrastructure projects will boost 1970’s New Towns; Landslide and Remedies economic activities and improve the living environment.” 1980’s Transportation: Highways and Railways - A New Direction for Hong Kong 1990’s New Airport (ACP); 2007 Policy Address 43 44 43 44 Progressive Development B. Undertaking 10 Major Infrastructure 10. I advocate the concept of “Progressive Projects for Economic Growth Development” … 20… Transport Infrastructure 11.“Progressive Development” is envisioned to (1) South Island Line be realized by: (2) The Sha Tin to Central Link (1) Promoting economic development (3) The Tuen Mun Western Bypass and through infrastructure projects … The large- Tuen Mun - Chek Lap Kok Link scale infrastructure projects implemented in the 1970s and 1990s provided the impetus for rapid Cross-boundary Infrastructure Projects growth. … (4) The Guangzhou-Shenzhen-Hong Kong … higher employment, wage increases and Express Rail Link real economic benefits. As we embark upon the (5) Hong Kong-Zhuhai-Macao Bridge 21st century, we will push ahead with 10 major (6) Hong Kong-Shenzhen Airport Co- infrastructure projects … operation (7) Hong Kong-Shenzhen Joint (2) …. Development of the Lok Ma Chau Loop 45 46 45 46 B. Undertaking 10 Major Infrastructure Hong Kong’s Post-war Development Projects for Economic Growth - the last 70 years 20. … 1950’s Public Housing New Urban Development Areas 1960’s Water Supply and more Housing (8) West Kowloon Cultural District 1970’s New Towns; Landslide and Remedies (9) Kai Tak Development Plan (10) New Development Areas (NDAs) 1980’s Transportation: Highways and Railways 1990’s New Airport; Environmental Protection & Natural Conservation 2000’s More Infrastructure and Cross Border Links (HZMB, ERL,…) 2010 onwards … 47 48 47 48 8  17/10/2024 Rapid Population Growth Land Use : Built up area takes up only ¼ of Hong Kong’s 1,100 km2 24% 66.6% Built up Area Woodland / Shrubland / Grassland / Wetland (46% are country parks Millio 10n and special areas under statutory control) 0.7% Barren Land 8 8.3 7.7 2.6% 7.1 Water Bodies 6 6.7 5.8 6.1% 5.1 Agricultural Land 4 4.0 3.1 2 2.1 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 46% are country parks and special areas under statutory 49 control for public enjoyment 50 49 50 Planning & Construction for Development Project Development & Project Planning - from Concept to Reality - the Main Stages of a Project 51 52 51 52 PLANNING & ADMINISTRATION OF INFRASTRUCTURE DEVELOPMENT PLANNING & ADMINISTRATION OF INFRASTRUCTURE DEVELOPMENT Conceptualization and strategic planning Conceptualization and strategic planning Planning Project definition and detailed planning Project definition and detailed planning Project initiation, funding and authorization Project initiation, funding and authorization Implementation Design, construction and commissioning Design, construction and commissioning Operation, management and maintenance Operation Operation, management and maintenance 53 54 53 54 9  17/10/2024 Physical Infrastructure Development Ability to influence a project Physical Infrastructure Planning & development Systems Conceptualization Port&& Port Water Waste & Housing Housing Highway Railway Airport Airport Drainage Project Definition Project Initiation Authorization Interface Coordination 56 55 56 Purpose of Project Purpose of Project Territorial Territorial planning planning Planning Objectives requirements requirements Data input Data input Planning objectives Design parameters Design parameters Appraisal Planning studies Planning Studies Evaluation : Economic and Financial Transport Study System Planning Engineering Study Transport Transport Study Engineering Environmental (EIA) Generation of Options Evaluation : System Planning Economic and Financial Transport Engineering Study Recommendations Engineering Environmental (EIA) Appraisal Generate options Recommendations Planning of a New Project (say a transport project) 57 Planning of a New Project 58 57 58 Transport Studies Engineering Studies Assumptions A Road Scheme The Forecast Demands Possible Options A Bridge Scheme If population grows or decreases A Tunnel Scheme If GDP grows or Bridge-cum-tunnel declines Other options … If … The Different Scenarios The Building Blocks 59 60 59 60 10  17/10/2024 Transport Engineering Demands Options Scenarios Building Blocks The forecast Demands Possible Options Most Critical Different Schemes The Different Scenarios The Building Blocks Matching demand with best option(s) Common elements, practicability, triggers, The Most Critical Sections Different Schemes timing, cost effectiveness, other considerations Matching the demand with the best scheme(s) An Infrastructure Development Strategy 61 62 61 62 1) Conceptualization and strategic planning 2) Project definition and detailed planning Full Project 3) Project initiation, funding and authorization Full Project Life Management Life Management 4) Design, construction and commissioning PPP – Public Private Partnering BOT – Build, Operate, Transfer BOO – Build, Operate, Own 5) Operation, management and maintenance PROJECT MANAGEMENT PROCESS 63 PROJECT MANAGEMENT PROCESS 64 63 64 Five Build-Operate-Transfer (BOT) Tunnel Projects Location of 5 BOT Tunnel Projects in HK Route 3 Country Park Section R3CPS TING EHC KAU Tate’s Cain Tunnel CHT Western Harbour Crossing Eastern TCT WHC Harbour Cross Harbour 65 crossing Tunnel 66 65 66 11  17/10/2024 Hong Kong BOT Tunnel Projects Base Year Value Money of the Day (MOD) Present Value Projects Work Time for Actual Operation Franchise Expiry of commenced completion time start period franchise A n = P0 (1 + r%) n-1 (month) (years) O Cross Harbour 9-1969 47 36 8-1972 30 9-1999 O Tunnel O O P0 = An / (1 + r%) n-1 Eastern Cross O 8-1986 42 37.5 9-1989 30 8-2016 Harbour Tunnel Tate’s Cairn Tunnel 7-1988 37 34 6-1991 30 7-2018 A 4 = P0 (1 + r%)3 Western Harbour 8-1993 48 44 4-1997 30 8-2023 A 3 = P0 (1 + r%)2 Crossing A 2 = P0 (1 + r%)1 Route 3 (Country Park 5-1995 38 36 5-1998 30 5-2025 Section) P0 A 1 = P0 Present Value 67 68 67 68 Discounted Cash Flow Analysis n NPV =  Ri – Ci More Public Projects & Fiscal Policy – i=1 (1+r) i-1 Public Sector Spending & Annual Budget th Ri = income in the i year th Ci = expenditure in the i year r = discount rate n = project life (years) Try work sheet When NPV = 0, r is the FIRR Ex. 1 & 2 69 70 69 70 The Airport Core Projects (1989-1998) Harbour Area Treatment Scheme (HATS) Total project cost = HK$155 billions Phase 1 HK$8.1 billions (1994-2001) Phase 2 HK$17 billions (2009-2014) 71 72 71 72 12  17/10/2024 Shenzhen LOW Lo Wu Capital Costs for Major Railway Projects LMC Lok Ma Chau Sheung Shui SHS Shekou Construction Period FAN Capital Cost Project SHEUNG SHUI to ($B) LOK MA CHAU SPUR LINE Tai Po Start Complete Yuen Long TIS LOP TWO Airport Railway 35.1 11/1994 7/1998 YUL TAP KSR WEST RAIL (PHASE I) LEO MOS HEO SIH UNI New Territories Tseung Kwan O Line 16.0 11/1998 8/2002 Ma On CHG Shan FOT TUM Tuen Mun Sha Tin RAC SHM Tsuen Wan SHT CIO TWW TSW TWH TAW TAW STT SKS MA ON SHAN to West Rail Line 46.4 9/1998 12/2003 KWH TAI WAI RAIL LINK East Rail Extensions TSY KWF LAK WTS MEF KOT LOF DIH LCK Ma On Shan Line 11/2000 12/2004 CSW SKM CHH Tseung YAO Kwan O SSP PRE MKK KOB POA MTR Tsim Sha Tsui Extension 26.7 3/2001 10/2004 NAC CLK PEB OLY MOK NTK HAH TSEUNG KWAN O KWT YMT Kowloon LAT TIK EXTENSION KOW JOR HUH TKO YAT Sheung Shui to Lok Ma WKPT ETS 10/2002 mid 2007 TST TKS FOH HOK NOP QUB TUC Tung Chung SHW CEN ADM WAC CAB TIH TAK SWH SKW HFC Chau Spur Line PENNY'S BAY RAIL LINK TSIM SHA TSUI Lantau Island Hong Kong Island CHW EXTENSION Disneyland Resort Line 2.0 7/2002 9/2005 Kowloon Southern Link 8.3 8/2005 end 2009 Total 134.5 73 RDS 1994 - NEW RAILWAY ROUTE MAP 74 73 74 2015 Budget Highlights (Expenditure) 2015 Budget Highlights (Revenue) Public Sector Spending ( $440.8B ) Health 70.6 (16%) Expenditure 440.8B Education 79.3 (18%) Revenue 477.6B Social Welfare 67.7 (15%) Infrastructure 76.1 (17%) Total 293.7 (66%) 75 76 75 76 Expenditure of the Capital Works Programme (1991/92 to 2007/08) The Government will press on with projects that yield economic and social benefits to Hong Kong. HK$ 29Bn ----------------------------------------- The average annual provision earmarked for infrastructure works is about $29 billion over the next five years, similar to that for the past few years. --the Budget 2003-04 77 78 77 78