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Author Archives: hksar gov

LCQ17: Public works projects on public hospitals

     Following is a question by Dr the Hon Kwok Ka-ki and a written reply by the Secretary for Food and Health, Professor Sophia Chan, in the Legislative Council today (October 24):
 
Question:
 
     Regarding public works projects for the construction, expansion and redevelopment of public hospitals, will the Government inform this Council of:
 
(1) the following information on each of the projects completed in the past five years (set out in a table according to the date on which funding approval was granted by the Finance Committee (“FC”) of this Council):
(i)  the name of the project,
(ii)  the date on which funding approval was granted,
(iii) the amount of approved funding for the advance works,
(iv)  the consultancy fees for conducting advance works study,
(v)  the name(s) of the consultant(s) responsible for carrying out the advance works study,
(vi)  the commencement date of the works,
(vii) the completion date of the works,
(viii) the name(s) of the works consultant(s),
(ix)  the name(s) of the works contractor(s),
(x)  the initial cost estimate, and
(xi)  the actual cost;
 
(2) the following information on each of the projects intended to be submitted to FC in the coming year (set out in a table according to the date on which funding application is intended to be submitted):
(i)  the name of the project,
(ii)  the date on which funding application is intended to be submitted,
(iii) the amount of funding to be sought for the advance works,
(iv)  the name(s) of the consultant(s) responsible for carrying out the advance works study,
(v)  the anticipated commencement date of the works,
(vi)  the anticipated completion date of the works, and
(vii) the cost estimate; and

(3) the tendering procedures for such type of works projects; the specific criteria adopted for selecting consultants and contractors, and whether such criteria include the past performance of the relevant companies (e.g. whether the projects in which they participated experienced cost overruns or delay); whether it will consider drawing up a blacklist of consultants and contractors or setting up a demerit point system in this respect; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     My reply to the various parts of the question raised by Dr the Hon Kwok Ka-ki is as follows:
 
(1) Projects with construction works completed from the financial years of 2013-14 to 2017-18 are listed in the Annex.
       
(2) The hospital works projects, which are anticipated to be submitted to the Finance Committee (FC) of the Legislative Council (LegCo) for approval in the 2018-19 LegCo session include the redevelopment of Kwai Chung Hospital (phases 2 & 3), the preparatory works for the expansion of Lai King Building in Princess Margaret Hospital, the preparatory works for the expansion of North District Hospital and the demolition and foundation works for the redevelopment of Prince of Wales Hospital, phase 2 (stage 1). These projects are still under planning. Upon completion of the planning work, we will submit the funding applications for the works projects to the Panel on Health Services, Public Works Subcommittee and the FC of LegCo and provide the anticipated commencement and completion dates, as well as the cost estimates of the works projects to the LegCo members.
 
(3) The Hospital Authority (HA) and Architectural Services Department (ArchSD) select consultants and contractors for their works projects based on the Government’s procurement mechanism for public works projects and in accordance with the principles of openness, fairness and impartiality, conforming to the Agreement on Government Procurement of the World Trade Organization and the procurement regulations promulgated by the Government.
 
     For consultancy agreements, the HA and ArchSD publish tender notices on their websites and invite relevant consultants in the market to make expression of interest submissions. After a shortlisting process, suitable consultants will be invited to submit detailed proposals to bid for consultancy agreements. In the process of assessment, the HA and ArchSD will consider their technical approach, expertise, manpower input, past performance and bid prices for the contracts to ensure that the most cost-effective tender is selected.
 
     For works contracts, the HA and ArchSD normally only invite contractors who are on the List of Approved Contractors for Public Works or the List of Approved Suppliers of Materials and Specialist Contractors for Public Works to submit tenders, and publish tender notices on their websites.
 
     To select the best value-for-money tender, the HA and ArchSD adopt the Development Bureau (DEVB)’s “Formula Approach” or “Marking Scheme” in tender evaluation. The tender evaluation takes into account the tender prices, returned tender proposals and the past performance of the tenderers in the works contracts to calculate an overall score for each tender according to the established criteria.
 
     Normally, the tender with the highest overall score will be recommended for acceptance. However, the tenderer is subject to financial checking to ensure that the tenderer is financially capable of fulfilling the contract requirements. Besides, tenders with unreasonably low prices will not be recommended.
 
     After tender evaluation, the HA and ArchSD will submit a tender report to the relevant tender board for consideration of acceptance of tenders.
 
     For details of the procedures for tender invitation and evaluation for works contracts and consultancy agreements, please refer to the following documents which have been uploaded to the websites of DEVB and the relevant government departments:
 
(1) Development Bureau Technical Circular (Works) No. 4/2014 and 4/2014A “Tender Evaluation Methods for Works Contracts”;
(2) Engineering and Associated Consultants Selection Board Handbook; and
(3) Architectural and Associated Consultants Selection Board Handbook.
 
     The HA and ArchSD will monitor and evaluate the contractors’ performance throughout the construction period. The performance reports cover various aspects, including works progress and whether there are works delays or claims from the contractors. Should the contractor perform unsatisfactorily, regulating actions (such as mandatory suspension from tendering, downgrading or even removal of the contractor from the relevant Approved Lists) may be considered. In addition, the ratings given to a contractor in his performance report will affect his performance rating, and directly affect his chance of securing tenders in future.
 
     As for consultancy agreements, the HA will evaluate the performance of consultants at quarterly intervals, having regard to considerations including whether the agreements concerned have involved additional expenditures and whether the consultants have failed to meet target completion dates. Under the current system, a consultant’s past performance is also a selection criteria. read more

Fourth Plenary Session of the Hong Kong/Beijing Co-operation Conference held in Beijing

     The Chief Executive, Mrs Carrie Lam, and the Mayor of Beijing, Mr Chen Jining, each joined by their respective delegation, convened the Fourth Plenary Session of the Hong Kong/Beijing Co-operation Conference in Beijing today (October 24).

     Mrs Lam said, “Hong Kong and Beijing are core cities of the country, each with their most distinctive positions and functions. Both cities are playing important roles in the deepening of economic reform and the modernisation of the country. Since the establishment of the co-operation mechanism between Hong Kong and Beijing, in the spirit of mutual benefit, the two places have broadened and deepened co-operation from where we started, with economic and trade-related co-operation to other areas of livelihood and community matters. The Plenary Session today marks a new milestone and a new chapter in Hong Kong-Beijing co-operation.”

     At the meeting, Hong Kong and Beijing reached consensus on the following eight co-operation areas:

The Belt and Road Initiative, Economic and Trade Co-operation
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     Both sides would make full use of collaboration platforms such as the Belt and Road Summit and the seminar on “Strategies and Opportunities under the Belt and Road Initiative – Leveraging Hong Kong’s Advantages”, to strengthen communication and exchanges, as well as practical co-operation between key enterprises of the two places in legal, finance, accountancy, construction and other areas. Both sides would also facilitate project matching, and encourage enterprises of the two places to jointly explore international business opportunities and open up markets along the Belt and Road.

Services Industries
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     Hong Kong and Beijing would enhance co-operation in financial technologies (Fintech) by encouraging exchanges amongst Fintech enterprises on projects and technical skills, and sharing of innovation experience.

     Representatives from Beijing would attend the Asian Financial Forum held in Hong Kong to leverage Hong Kong’s advantages in the financial services industry and discuss the latest developments in Asian financial markets, with a view to enhancing co-operation between the two places in finance, innovation and entrepreneurship, and facilitating matching for project investment and financing.

     The Hong Kong Trade Development Council would form a Hong Kong delegation of services industries to attend the China Beijing International Fair for Trade in Services in Beijing and explore co-operation in services sectors. Both sides would jointly organise the Beijing-Hong Kong Economic Cooperation Symposium and support deeper co-operation through their economic and trade activities.

Innovation and Technology
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     Both sides would continue to encourage universities and research institutes to enhance innovation and technology co-operation according to each other’s research strengths.

     Top-notch technology enterprises in Beijing would be encouraged to establish a presence at the two research clusters in Science Park on healthcare technologies and artificial intelligence/robotics technologies to be set up in Hong Kong.

Cultural and Creative Industries
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     The two places would continue to initiate cultural exchange and co-operation. Thematic activities for the cultural industries of Hong Kong and Beijing would be held through different channels, such as the Beijing-Hong Kong Economic Cooperation Symposium.

     The two places would enhance exchanges between arts groups. Beijing Tianqiao Performing Arts Center and the West Kowloon Cultural District of Hong Kong would enhance co-operation with a view to promoting cultural performances and exchanges of talents.

Education and Training of Civil Servants
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     The two places would continue to strengthen co-operation in the joint operation of education programmes, the establishment of a platform for sister schools and exchanges of teachers and students.

     The Beijing-Hong Kong University Alliance would organise exchange activities for higher education institutions of the two places during the annual Beijing-Hong Kong Economic Cooperation Symposium to promote high-level exchanges and co-operation between the higher education sectors of the two places.

     The two places would continue to implement the Agreement on Civil Service Exchange Programme between Beijing and Hong Kong (2017-2019) and other related arrangements.

City Management and Public Services
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     On flood prevention experiences, the two places would continue to take forward the staff exchange training programme and the sharing of technical research findings.

     The two places would jointly study the challenges, measures and co-operation opportunities in environmental pollution management; organise business-to-business networking sessions for environmental think tanks and enterprises; enhance urban governance; and promote the sustainable development of the two cities.

     The two places would share experience in the regulation, prevention and control of risks, as well as the public monitoring of food and drug safety, with a view to enhancing the standard of food and drug safety in Hong Kong and Beijing.

     The two places would share experience relating to healthcare services, enhance co-operation in the Chinese medicine industry and take forward health-related activities such as policy analysis and experience sharing by experts.

     The two sides would encourage the MTR Corporation Limited and relevant enterprises in Beijing to explore enhanced co-operation in transport-oriented development, railway operation and maintenance and professional training.

Youth Development
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     The two places would continue to implement dedicated youth exchange programmes between Hong Kong and Beijing and would support Hong Kong youths to provide volunteer services for the Olympic and Paralympic Winter Games Beijing 2022.

Facilitation Measures for Hong Kong People in the Mainland
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     The People’s Government of the Beijing Municipality would ensure that policies and measures introduced by the relevant Central authorities to facilitate the career development of Hong Kong people in the Mainland would be fully implemented at the local level, so that Hong Kong people in Beijing could enjoy facilitation in the areas of education, employment, setting up business, daily living and so on. The People’s Government of the Beijing Municipality would also roll out an advisory services portal to serve Hong Kong people in Beijing.

     The memorandum of the Fourth Plenary Session of the Hong Kong/Beijing Co-operation Conference signed by both sides (Chinese only) is in the annex.

     The Fourth Plenary Session of the Hong Kong/Beijing Co-operation Conference was co-chaired by the Chief Executive, Mrs Carrie Lam, and the Mayor of Beijing, Mr Chen Jining. Officials of the Hong Kong Special Administrative Region (HKSAR) Government attending the meeting included the Financial Secretary, Mr Paul Chan; the Secretary for Constitutional and Mainland Affairs, Mr Patrick Nip; the Secretary for Commerce and Economic Development, Mr Edward Yau; the Director of Chief Executive’s Office, Mr Chan Kwok-ki, and other representatives of the relevant bureaux and departments.

     The Deputy Director of the Hong Kong and Macao Affairs Office of the State Council, Mr Song Zhe, and the Deputy Director of the Liaison Office of the Central People’s Government in the HKSAR, Ms Qiu Hong, also attended the meeting. read more