CONTRACT NO. HAB/WSC/01DESIGN, CONSTRUCTION AND OPERATION OF

A WATER SPORTS COMPLEX AT THE EX SHEK O QUARRY

Tender Briefing Session24 August 2021

Home Affairs BureauPolicy Innovation and Co-ordination Office

DISCLAIMER1. No information presented, either visually or orally, in this

briefing session should be taken as varying the information in the tender documents unless subsequently confirmed in writing;

2. If there are any discrepancies between information presented in this briefing session and information in the tender documents, the information specified in the tender documents shall prevail;

3. Information presented in this briefing session is not exhaustive, and the HKSAR Government owes no duty of care nor is liable to any body in respect of any errors, omissions, discrepancies or deficiencies relating to information presented in this briefing session;

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DISCLAIMER

4. Clarifications of contractual relevance should be put to the Government (PICO) in writing in accordance with the Conditions of Tender;

5. No notes or minutes of this meeting will be provided, and no photo or any form of voice or video recording is permitted;

6. No information presented in this briefing session shall be used without written permission of the Government; and

7. Participants, who remain in the meeting, are deemed to have agreed to the above conditions.

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Contents

1. The Rehabilitated Ex Shek O Quarry Site

2. The Project

3. Design and Construction Requirements4. Operation Requirements

5. Tender Submission

6. Tender Assessment7. Financial Capability Assessment

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1. The Rehabilitated Shek O Quarry Site

“Exploring the development of a water sports centre at the rehabilitated Shek O Quarry site under public-private partnership”

2020 Policy Address

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Promote sports in the community

Support elite sports

Major international sports events

LEGENDSITE BOUNDARY

LAND AREA (~24 HA)

RELATVELY FLAT LAND AREA (~5.5 HA)

SMALL LAND AREA

WATER AREA (~11 HA)

11 ha

24 ha

5.5 ha

• The area zoned “U” includes both land and water area

• Access road from Shek O Road to the Site

• Small land areas

Project AreaLocation

• On the west coast of D’Aguilar Peninsula

• Next to the Shek O Country Park

• Overlooking the scenic Tai Tam Bay

GFA/Height Restriction

• Maximum GFA: 55 000 m2• Maximum non-sports

related commercial GFA (20%)

• While no building height restriction is stipulated for the Site, tenderers shall propose low-rise development

• Mainly zoned “Undetermined (U)”

• Planning application to Town Planning Board is required

• The development should NOT cause adverse impact on surrounding areas zoned “GB”, “CP” (incl. SSSI)

Zoning

Site Parameters

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2.1 Public-Private-Partnership

Design Construction Operation

Contract Period: 25 years

The Government The Contracted Party

• Funding the design, construction, operation, management and maintenance of the WSC

• Share revenue with the Government during the operation phase

No funding contribution

Operate

Up to 10 years extension subject to conditions

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2. The Project

2.2 Tender Exercise

Two-envelope approach

Technical Envelope

Financial Envelope

30 July2021

Start Tendering

24 August 2021

Briefing

Feb to Mar2022

Tender Assessment

Q1 2022

Award the Tender

20 January2022

Close of Tender

20%80%

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2.3 Project Facilities

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2 Provision of Facilities in Support of Sailing Training and Events

Windsurfing Training Centre

Mandatory Sports Facilities

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2.4 Windsurfing Training Centre (WTC)

The Contracted Party is required to design, build and fit out at its own costs a WTC exclusively for the Hong Kong Sports Institute (HKSI) to replace its existing windsurfing training base in Stanley. (Detailed specifications in Clause 2.1 of Government’s Requirements)

Upon confirmation by the Contracted Party’s appointed Authorised Person (AP) that the WTC is fully in compliance with the requirements of the Contract, the Buildings Ordinance and all other ordinances, bye-laws and regulations in force in HK, and the issuance of an Occupation Permit (OP) by the Building Authority, the Contracted Party shall hand over the fitted out WTC to the Government.

During the Contract Period, the Contracted Party shall be responsible for the maintenance of the WTC, whereas HKSI will be responsible for the day-to-day management of the WTC.

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2.5 Provision of Facilities in Support of Sailing Training and Events

Contracted Party shall also provide facilities with an objective to promoting sailing activities and to hosting sailing competitions and events in Hong Kong.

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3. Design and Construction RequirementsThe Design shall be completed no later than the date committed by the Contracted Party in the Tender which in any case shall not be later than 3 years from the Contract Commencement Date.

The Construction shall be completed no later than the date committed by the Contracted Party in the Tender which in any case shall not be later than 5 yearsfrom the Contract Commencement Date.

For every one day of delay in the completion of the Design or Construction, the Government will be entitled to call upon the Bond for a sum equal to 0.5% of the Required Amount (ref: Clause 63 of Conditions of Contract)

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The Site shall be dedicated for water sports-themed development. Tenderers are free to propose, the kinds and mix of water sports to be provided, the allocation of land and water areas for sports facilities and other

permissible uses, andthe business model and pricing strategy.

To align with the water sports theme, × hotel/resort-themed proposals will NOT be considered,× residential, industrial and office uses will NOT be permitted

3.1 Permitted uses

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3.2 Standards, Statutory and Other Approval Requirements (1)

The Design and Construction of the Project shall comply with all relevant statutory regulations and requirements, planning parameters and conditions for using and occupying the Site; (detailed in Clause 3.4.2 and 3.4.3 of Government’s Requirement)

The Contracted Party shall directly approach and obtain all necessary approvals, licences, permits or consents from relevant authorities; and

Acceptance of the Tender by the Government shall NOT imply in any sense that any such necessary approval, licence, permit or consent from the relevant authorities would be granted to the proposals in the Tender.

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3.3 Standards, Statutory and Other Approval Requirements (2)

The Contracted Party shall appoint Design Checkers who are independent of the Contracted Party and of the Contracted Party’s appointed Authorised Person to check the Design prepared by the Contracted Party’s Authorised Person/Designer.

The Contracted Party is required to particularly observe and comply with the statutory requirements of the following Ordinances:

Buildings Ordinance (Cap. 123)

Foreshore and Sea bed (Reclamations) Ordinance (Cap. 127)

Town Planning Ordinance (Cap. 131)

Environmental Impact Assessment Ordinance (Cap. 499)

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3.4 Traffic Requirement

Tenderers shall prepare an Access and Transport Management Plan (Annex A of the Tender Assessment Framework) to assess traffic impact and recommend mitigation measures to be implemented by the Contracted Party.

Upon the award of Contract the Contracted Party shall conduct a Traffic Impact Assessment (TIA) for TD’s approval.

The Access and Transport Management Plan submitted in the Tender may form the basis of the TIA.

Shek O Road (two-lane carriageway of 7.3m wide)

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4. Operation Requirements

4.1 Full Operation of the WSC

The Contracted Party shall commence the Operation of the Project in full no later than one month after the Construction Completion Date or such extended time as may be granted or such revised time as may be agreed by the Government in writing.

For every one day of delay in the commencement of full Operation of the Project, the Government will be entitled to call upon the Bond for a sum equal to 0.5% of the Required Amount. (Clause 63 of Conditions of Contract)

Subject to the written agreement of the Government’s Representative, the Contracted Party may commence the Operation of the Project in phases.

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4.2 Bonds and Securities (1)

Bonds The Contracted Party shall, within 21 days of Contract

Commencement, provide to the Government a Bond of a bank for the due performance of the Contract.

The amount of the Bond shall be 5% of the estimated total Project Investment of the Project proposed in the Tender or $40,000,000.00, whichever is larger (“Required Amount”).

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4.3 Bonds and Securities (2)

Undertaking and Guarantee The Contracted Party shall within 21 days of the Contract

Commencement Date provide to the Government a guarantee(s) in the amount and form as set out in Appendix D or E of Conditions of Contract to guarantee the due performance and observance of all the obligations in the Contract.

The Contracted Party shall within 21 days of the Contract Commencement Date provide to the Government an undertaking(s) in the form as set out in Appendix F of the Conditions of Contract.

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4.4 Key Performance Indicators (KPIs)

The priority booking system for EOBs and hosting of sports events and competitions, as well as additional KPIs which may be imposed by the Government to monitor the Contracted Party’s compliance with its commitments in the Tender, will constitute the KPIs for the Project.

The Contracted Party shall make available at least one-third of the water sports facilities and land-based sports facilities (by capacity) for EOBs’ use during EOB block booking periods (i.e. from the opening hour in the a.m. session to 1:00 p.m. on weekdays and Saturdays, excluding public holidays).

The Contracted Party shall make available a minimum of 13 days per annum for hosting of water and land-based sports events and competitions.

Delivery of such KPIs are binding obligations on the Contracted Party under the Contract.

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4.5 Fixed Payment and Gross Income Share (1)

The Contracted Party is required to pay Fixed Payment and Gross Income Share quoted in the Financial Proposal of the Tender for each Contract Year to the Government on a quarterly basis.

The details and payment mechanism are stipulated in Clause 35 of the Conditions of Contract.

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1. Fixed Payment – per Appendix C to the Form of Tender• No Fixed Payment for the first five Contract Years• Contract Year: 1 April – 31 March, except first and last year

2. Gross Income Share – Gross Income (per Financial Plan or budget) x Variable Income Sharing Percentage (per Appendix D to the Form of Tender)

3. Fixed Payment & Gross Income Share both payable in equal quarterly installments on 30 June, 30 September, 31 December and 31 March

4.6 Fixed Payment and Gross Income Share (2)

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4. Audited Annual Income Calculation and Reconciliation Reportto the Government within 4 months after each Contract Year

5. Over- or under-payment of Gross Income Share – settled within 30 days of the Report date with no interest

4.7 Fixed Payment and Gross Income Share (3)

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5.1 Submission of Tender

Tenderer shall submit its tender containing (i) a Technical Proposal; and (ii) a Financial Proposal concurrently but by two separate sealed envelopes.

Essential documents

Technical Envelope

Financial Proposal Technical Proposal Pro forma 5 of CoT Pro forma 6 of CoT

Financial Envelope

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5. Tender Submission

5.2 Technical Proposal Submission Requirement

Maximum limit for Technical Proposal (excluding “Other information” in Part A and “Supporting information” in Part B is of 300 pages in A3 size);

In respect of each page that exceeds the maximum page limit, 0.5 mark will be deducted from the total technical mark, subject to the deduction ceiling of eight (8) marks; and

Detail requirements of the Technical Proposal are set out in Clause 4.1.3.1 of the Conditions of Tender.

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5.3 Financial Proposal Submission Requirement

Information required Reference1. A covering page setting out the contents

of the Financial ProposalN.A.

2. Form of Tender, duly completed andsigned by the tenderer in hard copy format

Form of Tender

3. Proposed Fixed Payment Appendix C of Form ofTender

4. Proposed Gross Income Share Appendix D of Form ofTender

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6. Tender Assessment

I. Completeness Check

II. ER Compliance

III. Technical Assessment

IV. Financial Assessment

V. Calculation of Combined Score

Technical Proposal Financial Proposal Pro forma 5 of

Conditions of Tender

Pro forma 6 of Conditions of Tender

Essential Requirements in Clause 1.3.2 of the TAF: at least 8 years’

experience of operating water sports facilities in or outside HK in the past 15 years; and

full compliance with development parameters.

Total marks: 120 Four assessment criteria

set out in the marking scheme in Clause 3.1 of the TAF.

Only tenders attaining the passing marks for both Criteria 1 (12 marks) and Criterion 2 (26 marks) will be allowed to proceed to Stage IV Assessment.

Total marks: 30 Fixed Payment

(15 marks) Income Share

(15 marks)

Technical and Financial Scores to be added to give the combined score.

The tenderer with the highest score will be recommended for tender award, subject to it being able to pass the financial vetting.

6.1 Five-stage assessment procedures

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6.2 Marking Scheme - For Technical Assessment

I. Project Vision and Positioning (30)

II. DBO Arrangement (65)

III. Stakeholder Engagement (10)IV. Tenderer’s Technical Capability (15)

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2

4

6

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1. FurtherGovernment's

Sports Objectives(8)

2. Accessibilityand Affordability

(8)

3. DevelopmentMix (4)

4. Opportunity forHong Kong (4)

5. InnovativeSuggestions (6)

Site Planning and Project Design (20)

Construction and Commissioning (10)

Operation(35)

Overall design concept (5) Buildability (2) Management plan (15)

User-centric and inclusiveness (3)

Construction programme (6)

Including innovative suggestions (3)

Traffic arrangement (4) Innovative suggestions (2) Financial plan (20)

Take into account of other infrastructural constraints (4)

Including innovative suggestions (4)

Innovative suggestions (4)

Local community

SportsSector

How good the stakeholders are engaged to secure their support, co-create and add value to the project as well as smoothen the approval and implementation process.

Ability to tackle critical issues with practicable proposals (4)

Take into account the sports landscape and development trend (4)

Technical experience and capability in D-B-O the WSC (5)

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2

3

Innovative suggestions (2)4

Passing marks: 12

Passing marks: 26

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6.3 Financial Plan(Pro Forma 16 to Conditions of Tender)

1. To evaluate the financial viability of the Project2. Yearly financial projections for 25 years3. Monthly cash flows projections for the first 6 years4. Checked by a recognized financial model auditor

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7. Financial Capability Assessment

Tenderers should demonstrate, through the information submitted as required in Appendix B to the Conditions of Tender, that they have the financial capability to fulfill its financial obligations / commitments and operating needs as well as meeting the funding requirements arising from the design, construction and operation of the proposed Water Sports Complex.

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Site Visit Arrangement

A site visit will be organised by the Government in September.

• All tenderers are invited to attend the site visit

• The Government will announce the details of the site visit on http://www.pico.gov.hk

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Thank You

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