A plan to merge the Civil Engineering Department and the Territory Development Department in 2004 is expected to save about $52 million a year, the Environment, Transport & Works Bureau says.

The details of the plan are being developed with a view to implementing the amalgamation next year.

The bureau said the first two generations of new town development programmes are substantially completed.

Having reviewed the duties, functions and workload of the departments and the pattern of the development of Hong Kong in the coming years, the Government considers it appropriate to merge the two departments into one.

The bureau stressed that the Government fully appreciates the professional competency and achievements of the two departments over the years.

The total savings arising from the proposed amalgamation is estimated to be about $52 million a year.

Meanwhile, a total of 66 posts could be deleted as a result of the merger. About 62 of the posts would be deleted immediately upon the establishment of the new department and the remaining four within three years.

The surplus staff will be fully absorbed through natural wastage, the Second Voluntary Retirement Scheme and redeployment within the Government.

The bureau added that staff will benefit from a larger pool of resources available which open up opportunities for training and professional development in a merged and larger department.

They will also be fully consulted on the staff arrangements and other issues of concern to them.