1 Introduction

1.2 Project History

1.2.1 In 1989, the Port and Airport Development Strategy Study (PADS) recommended that the majority of Hong Kong future port facilities be developed at the northeast of Lantau Island. This was reaffirmed by the Lantau Port and Western Harbour Development (LAPH) Studies conducted in 1993.

1.2.2 Penny’s Bay Reclamation was originally earmarked for container terminals (CT10 and CT11) under the LAPH Studies. A number of EIA Studies have confirmed the feasibility of the reclamation and devised mitigation measures. The EIA reports that have been previously endorsed by Environmental Pollution Advisory Committee (EPCOM) and Advisory Council on the Environment (ACE) are as follows:

a) Lantau Port and Western Harbour Development (LAPH) Studies (1993) Final Report, Volume III, EIA Report, CED, (EIA-021/BC) endorsed by the EPCOM on 7 June 1993;

b) Lantau Port Development Stage 1 - Container Terminals 10 and 11 Ancillary Works (Design) EIA Final Report, CED, 1994 (EIA-049BC) endorsed by the ACE with conditions on 20 February 1995;

c) Lantau Port Development Stage 1 - Container Terminals 10 and 11 Preliminary Design, Final Report, Volume 2, Container Terminal EIA, CED 1995 (EIA-057BC) endorsed by ACE with conditions on 20 February 1995; and

d) Lantau Port Development Stage 1 - Design of Reclamation and Edge Structures for Container Terminals 10 and 11 and Back-up Areas, EIA Final Report, CED, 1995 (EIA-073/BC) endorsed by ACE with conditions on 18 December 1995.

1.2.3 The subsequent LAPH studies confirmed the feasibility of North-East Lantau for port development as recommended in PADS. The proposed port facilities including container terminals, container back-up areas, boatyard and marine services support area have been incorporated into the North-East Lantau Port Outline Zoning Plan gazetted under the Town Planning Ordinance in March 1995 with subsequent minor amendments carried out in 1996 and 1998 (North-East Lantau Port OZP), as shown in Figure 1.2a. Facilities proposed to be located on Northshore Lantau included river trade cargo terminal and floating docks onshore facilities.

1.2.4 The 1997/98 Port Cargo Forecast indicated that there was a general slowdown of the growth rate of cargo throughput in Hong Kong. On the basis of such findings, the planned development programme for port facilities had been subsequently reviewed.

1.2.5 The 1995 Visitor and Tourism Study commissioned by the Hong Kong Tourist Association in conjunction with the Planning Department identified the potential for a tourism corridor along the northshore of Lantau Island. The 1998 Territorial Development Strategy Review (TDSR) also identified the area as having potential for a range of other land uses, such as tourism/recreation, housing, business estate and major transport interchange.

1.2.6 As a follow up to the TDSR, the NLDFS was commissioned by the CED in June 1998 to review the land use potential of the area. Based on assessment of alternative development options, the NLDFS has recommended that the land use proposals for North-East Lantau should be based on a tourism and recreation development theme with scope for international standard tourism facilities, while the sites for container terminals near Kau Yi Chau in the far south are retained for long term port development, pending further studies on the alternative location for port development.

1.2.7 In March 1999, the Committee on Planning and Land Development (CPLD), after considering initial findings of the NLDFS, agreed that the land use proposals for North-East Lantau should be drawn up on the basis of the tourism/ recreation development theme, with an intention to translate North-East Lantau into a “Tourist Paradise” comprising a world-class theme park and a range of other compatible tourist attractions. The meeting also decided that Container Terminals 10 and 11 were no longer required to be located at Penny's Bay, making way for an International Theme Park.

1.2.8 The preliminary findings of NLDFS and a preliminary outline development plan (PODP) were presented to the Town Planning Board and it was agreed at the meeting in July 1999 that the development thrust of North-East Lantau should in the future be for tourism and recreation purposes and the PODP was a suitable basis for the revision of the previous North-East Lantau Port OZP (S/I-NELP/4). The Draft North-East Lantau OZP (S/I-NEL/5) was gazetted under the Town Planning Ordinance in August 1999.

1.3 Relevant Studies

1.3.1 A review of the following approved studies and EIAs reports has been undertaken and relevant findings have been taken into account in this EIA.

· Port and Airport Development Strategy (PADS) (1989);

· Lantau Port and Western Harbour Development (LAPH) Studies, CED (1993);

· Lantau Port Development, Stage 1: Container Terminals No. 10 and 11, Ancillary Works (Design), CED (1994);

· Lantau Port Development Stage 1 Container Terminals 10 and 11, Preliminary Design Study, CED (1995);

· Lantau Port Development Stage 1, Design of Reclamation and Edge Structures for Container Terminals 10 and 11 and Back-up Areas, CED (1995);

· Lantau Port Development Stage 1 Marine Mammal Survey, Final Report, CED, (1996);

· Lantau Port Development Stage 1 Fish Fry Survey, CED (1997);

· Lantau Port Development Stage 1 Fisheries Resources Survey, CED (1997);

· EIA of Gas Turbine Plant at Penny's Bay, CLP (1990);

· Dolphins (Sousa chinensis) in East Lantau Waters of Hong Kong: Assessment of Potential Effects of Port Development, CED (1997);

· Population Biology of Indo-Pacific Hump-backed Dolphin (Sousa chinensis Osbeck, 1975) in Hong Kong Waters, Final Report, AFD (1998);

· Fisheries Resources and Fishing Operations in Hong Kong Waters, AFD (1998);

· Port Survey 96/97 by Capture Fisheries Division of AFD (1998);

· East Lamma Channel Borrow Area - Scoped Environmental Assessment, Final Report, CED (1993);

· Backfilling of South Tsing Yi and North of Lantau Marine Borrow Areas: Final Environmental Impact Assessment Report, CED (1995);

· Environmental Impact Assessment of Backfilling Marine Borrow Areas at East Tung Lung Chau - Final Report, CED (1998);

· Tang Lung Chau Dangerous Goods Anchorage EIA, TDD (1999);

· South-East Tsing Yi Port Development Planning and Engineering Feasibility Study for Container Terminal No. 9 - Final Report and Appendices, (1991);

· North Lantau Expressway - Yam O and Tai Ho Sections EIA, HyD (1991);

· Lantau and Airport Railway : Environmental Impact Study, MTRC (1994);

· North Lantau Refuse Transfer Station Consultancy Study, EPD (1995);

· Potentially Hazardous Installation - Siu Ho Wan Water Treatment Works, Steering Group Report on Hazard Assessment, Planning Study and Action Plan, PlanD, (1992);

· Route 10 - North Lantau to Yuen Long Highway, Investigation and Preliminary Design, EIA Final Assessment Report, HyD (1999);

· Outlying Islands Sewerage Master Plan Stage 1 Phase I, DSD (1997); and

· Outlying Islands Sewerage Master Plan Stage 2 Review, EPD (on-going).

1.4 Purpose and Objectives of the EIA

EIA Purpose

1.4.1 This EIA will provide information to contribute to decisions by the Director of Environmental Protection on:

· The overall acceptability of any adverse environmental consequences that are likely to arise as a result of the preferred development scheme proposed in the Draft RODP;

· The conditions and requirements for the detailed design, construction and operation of CKWLR to mitigate against adverse environmental consequences wherever practicable; and

· The acceptability of residual impacts after the proposed mitigation measures are implemented.

NLDFS Objectives

1.4.2 The objectives of the NLDFS, as stated in Clause 3 of the Project Consultancy Brief, are summarised as follows :

· to review, with strategic perspectives, the need, requirements and scope for the development of port and port-related facilities, business/ industrial, residential, tourism/ recreation and major G/IC uses in the Northshore Lantau area;

· to formulate preferred development schemes for the Study Area for implementation by and beyond 2016 together with the production of RODPs and ROZPs;

· to establish the feasibility of the preferred development schemes with reference to engineering, traffic and transport, hydraulics, environment and marine impact and financial viability with a view to the production of detailed layout plans; and

· to recommend a detailed programme of implementation and contract/ lease packaging with due regard to cost/ revenue benefits and various constraints including planning, landscaping, traffic, hydraulics, engineering, marine and environmental impacts identified during the course of this Study.

NLDFS EIA Objectives

1.4.3 The objectives of the NLDFS EIA, as stated in Clause 1.4.3 of the Study Brief, comprise the following :

· to identify and describe the elements of the community and environmental likely to be affected by the proposed Development and the required infrastructure, and/or likely to cause adverse impacts upon the proposed development, including both the natural and man-made environmental;

· to identify and quantify emission sources and determine the significance of impacts on sensitive receivers and potential affected uses;

· to identify and quantify any potential losses or damage to flora, fauna and natural habitats;

· to propose the provision of infrastructure or mitigation measures so as to minimise pollution, environmental disturbance and nuisance during construction, operation of the development;

· to identify, predict and evaluate the residual (i.e. after practicable mitigation) environmental impacts and cumulative effects expected to arise during the construction, operation phases of the development in relation to the sensitive receivers and potential affected uses;

· to identify, assess and specify methods, measures and standards, to be reflected on the Recommended Outline Development Plans (RODPs) and the Recommended Outline Zoning Plans (ROZPs) where appropriate and to be included in the detailed design, construction, operation of the development which are necessary to mitigate these impacts and these impacts and reduce them to acceptable levels;

· to investigate the extent of side-effects of proposed mitigation measures that may lead to other forms of impacts;

· to identify constraints associated with the mitigation measures recommended in the study; and

· to identify any additional studies necessary to fulfil the objectives to the requirements of this Environmental Impact Assessment Study.

CKWLR Objectives

1.4.4 The objectives of the CKWLR Study, as stated in Clause 3.9 of the Project Consultancy Brief, comprises :

· to recommend a preferred alignment, configuration and layout for the CKWLR, taking into consideration the land use proposals as recommended in the Study Area, and establish its overall feasibility;

· to produce a sound and cost-effective preliminary design for the road, with sufficient details for further development into a detailed design at a later stage; and

· to produce detailed project scope definition, realistic cost estimate and implementation programme.

CKWLR EIA Objectives

1.4.5 The objectives of the EIA on preliminary design of CKWLR, as stated in Clause 1.4.5 of the Study Brief, comprise the follows :

· to describe the proposed project and associated works together with the requirements for carrying out the proposed project;

· to identify and describe the elements of the community and environment likely to be affected by the proposed project, and/or likely to cause adverse impacts upon the proposed project, including both the natural and man-made environment;

· to identify and quantify emission sources and determine the severity of impacts on sensitive receivers and potential affected uses;

· to identify and quantify any potential losses or damage to flora, fauna and natural habitats;

· to identify existing landscape & visual quality in the "study area" for the purpose of evaluating the landscape & visual impact of the proposed project.

· to propose the provision of infrastructure or mitigation measures so as to minimise pollution, environmental disturbance and nuisance during construction, operation of the proposed project;

· to identify, predict and evaluate the residual (i.e. after practicable mitigation) environmental impacts and cumulative effects expected to arise during the construction, operation phases of the proposed project in relation to the sensitive receivers and potential affected uses;

· to identify, assess and specify methods, measures and standards, to be included in the detailed design, construction, operation of the proposed project which are necessary to mitigation these impacts and reduce them to established levels;

· to design and specify the environmental monitoring and audit requirements necessary to ensure the implementation and the effectiveness of the environmental protection and pollution control measures adopted;

· to investigate the extent of side-effects of proposed mitigation measures particularly construction impacts of mitigation measures that may lead to other forms of impacts;

· to identify constraints associated with the mitigation measures recommended in the study; and

· to identify any additional studies necessary to fulfil the objectives to the requirements of this Environmental Impact Assessment Study.

1.5 Key Environmental Issues and Study Approach

1.5.1 Key environmental issues and concerns identified that have been evaluated in this EIA Study include the follows.

· Air Quality - emissions from Theme Park operation, Penny's Bay Gas Turbine Plant (GTP), road traffic including the existing North Lantau Highway (NLH), and the proposed new roads (CKWLR, Route 10 - NLYLH, Road P1, Road P2 and Resort Roads), and construction activities.

· Noise - emissions from the Theme Park operation, tourism and recreational developments operation, road traffic, MTR Tung Chung Line and Lantau Airport Railway, Penny's Bay Rail Link, aircraft, helicopter, Penny's Bay GTP, future Container Terminal development (previously CT 12 and 13), and construction activities.

· Water Quality - hydrodynamic impacts due to proposed reclamations at Siu Ho Wan, Northshore (Yam O to To Kau Wan), Tsing Chau Tsai East, Penny's Bay, and the future Container Terminal development; and water quality impacts due to construction discharges, stormwater runoff, and sewage discharge from sewage treatment works outfalls.

· Solid Wastes Management - solid wastes arising from the construction and operation of the proposed development, including marine sediments to be dredged and disposed.

· Terrestrial Ecology - potential impacts on flora and fauna due to construction and operation of the proposed developments.

· Marine Ecology - potential impacts on coastal, inter-tidal and sub-tidal aquatic ecological resources due to construction and operation of the proposed developments.

· Fisheries - potential impacts on loss of fishing zones and fish fry areas due to the proposed reclamations, and temporal impacts during the construction phase.

· Hazard - potential impact on risk levels associated with the change in landuse and population within the consultation zone of the Siu Ho Wan Water Treatment Works (WTW), the proposed Tang Lung Chau Dangerous Goods Anchorage, dangerous goods transportation along the Kap Shui Mun Fairway, and fireworks and dangerous goods storage and handling at the Theme Park.

· Historical, Archaeological and Cultural Heritage - potential impacts on the heritage buildings and archaeological sites.

· Land Contamination - potential soil and groundwater contamination at various industrial undertakings, in particular the operation of Cheoy Lee Shipyard.

· Biogas - potential methane gas generation and migration associated with the marine sediment left in place under the proposed reclamations.

· Landscape and Visual - potential impacts on landscape and visual due to the proposed developments due to construction and operation of the proposed developments.

Cumulative Considerations

1.5.2 One of the main tasks of this EIA of NLDFS and CKWLR is to demonstrate the environmental feasibility of the cumulative environmental impacts during construction and operation of the existing, committed and planned developments within the Project Area.

1.6 Inter-Relationship with Other EIA Studies

1.6.1 A number of previous and ongoing EIAs, feasibility and engineering studies have been prepared or are being prepared that are within the Project Area. This EIA Study has taken account of the following relevant findings.

1.6.2 An EIA Study for the Construction of An International Theme Park in Penny's Bay of North Lantau and Its Essential Associated Infrastructures (Study Brief : ESB 043/1999) is now being undertaken under Schedule 2 of the EIAO by CED (hereinafter the Theme Park EIA). The Theme Park EIA will address in detail the environmental impacts arising from the construction and operation of 9 EIAO Designated Projects as described in Section 2. One of the Designated Projects the Theme Park EIA has covered is the Penny's Bay Rail Link, which comprises a new rail line of 3.6 km from Yam O to the Theme Park at Penny's Bay.

1.6.3 CED commissioned a Penny's Bay Reclamation - Design and Construction (Agreement No. CE18/98) consultancy in August 1998 for the repackaging and construction of Penny's Bay Reclamation. An Environmental Review Report was prepared and concluded that as the extent of reclamation works for the Theme Park and its associated developments in Penny’s Bay would be less than that for the port (Container Terminals 10 and 11) development at the same location, less environmental impacts were anticipated when compared with the previously endorsed EIA reports. The findings were presented to the Advisory Council on the Environment (ACE) on 27 September 1999 and the members welcomed that the project proponent had undertaken to work out a strategy for accommodating public fill in the contract works.

1.6.4 Highways Department has recently completed the preliminary design of Route 10 - North Lantau to Yuen Long Highway (R10-NLYLH) under the R10-NLYLH Investigation and Preliminary Design Assignment. The southern section of R10-NLYLH (North Lantau to So Kwun Wat) is proposed as a dual 3-lane carriageway for the southern section between Lantau Island and So Kwun Wat. According to the current programme, R10-NLYLH is scheduled to open in late 2007. The proposed toll plaza of R10-NLYLH will be tied in with the Pa Tau Kwu Interchange connected to CKWLR and the long term proposal of Route 10 - Hong Kong Lantau Link (R10-HKLL) subject to further studies.

1.7 Structure of the EIA

1.7.1 Following this introductory Section, this EIA includes the following Sections:

· Section 2 provides an overview of the NLDFS Draft RODP and CKWLR outlining key elements, location, design, construction and operation as well as a description of the planning and engineering components within the Project Area and the perceived benefits and disbenefits of the Project;

· Section 3 presents an assessment of potential impacts on air quality to satisfy Clause 3.3.5 for NLDFS and Clauses 4.5.1.2 and 4.5.2.2 for construction and operation of CKWLR, respectively, of the Study Brief;

· Section 4 presents an assessment of potential noise impacts to satisfy Clause 3.3.4 for NLDFS and Clauses 4.5.1.1 and 4.5.2.1 for construction and operation of CKWLR, respectively, of the Study Brief;

· Section 5 presents the results of the water quality, wastewater and non-point pollution sources and dredging, filling and dumping impact assessment to satisfy Clause 3.3.6 for NLDFS and Clauses 4.5.1.1 and 4.5.2.4 for construction and operation of CKWLR, respectively, of the Study Brief;

· Section 6 presents an assessment of waste management issues including the construction and demolition wastes impact to satisfy Clauses 3.3.9 and 3.3.10 for NLDFS and Clause 4.5.1.4 for construction of CKWLR of the Study Brief;

· Section 7 details the results of the terrestrial ecological impact assessment to satisfy Clauses 3.3.7 and 4.5.1.5 of the Study Brief for NLDFS and construction of CKWLR, respectively;

· Section 8 presents the results of the marine ecological impact assessment to satisfy Clause 3.3.7 of the Study Brief for NLDFS; impacts from CKWLR are also assessed;

· Section 9 presents the results of the fisheries impact assessment to satisfy Clause 3.3.8 of the Study Brief for NLDFS; impacts from CKWLR are also assessed;

· Section 10 presents the results of the risk assessment to satisfy Clause 3.3.11 of the Study Brief for NLDFS;

· Section 11 details the results of the historical, archaeological and cultural heritage impact assessment to satisfy Clause 3.3.12 of the Study Brief for NLDFS; impacts from CKWLR are also assessed;

· Section 12 details the land contamination assessment to satisfy Clause 3.3.13 of the Study Brief for NLDFS;

· Section 13 presents a summary of the landscape and visual impact assessment (provided in full as Annex K) to satisfy Clause 4.5.2.3 of the Study Brief for operation of CKWLR; impacts from NLDFS are also assessed;

· Section 14 provides a summary of the Environmental Monitoring and Auditing (EM&A) requirements during NLDFS and CKWLR construction and operational phases to satisfy Clause 4.5.3 of the Study Brief;

· Section 15 presents the tabulated Project Implementation Schedule for CKWLR; and

· Section 16 summarises the key conclusions and recommendations of the EIA study.

1.7.2 In addition, detailed supplementary information associated with the various EIA Study elements is presented in the following Annexes:

· Annex A presents information on the construction programme and phasing of the reclamations;

· Annex B presents supporting information for the air quality impact assessment;

· Annex C presents supporting information for the noise impact assessment;

· Annex D presents supporting information for the water quality impact assessment;

· Annex E presents supporting information for the terrestrial ecology impact assessment;

· Annex F presents supporting information for the marine ecology impact assessment;

· Annex G presents supporting information for the fisheries impact assessment;

· Annex H presents supporting information for the cultural heritage impact assessment;

· Annex I presents supporting information for the land contamination assessment;

· Annex J presents in full the landscape and visual impact assessment for NLDFS and CKWLR to satisfy Clause 4.5.2.3 of the Study Brief for CKWLR;

· Annex K presents the EIA Study Brief (SB-044/BC); and

· Annex L comprises the EM&A Manual.