Author Archives: hksar gov

     Following is a question by the Hon Kenneth Leung and a written reply by the Secretary for the Environment, Mr Wong Kam-sing, in the Legislative Council today (November 7):
 
Question:
 
     It has been reported that as some of its pipes and secondary treatment facilities were damaged during the time when super typhoon Mangkhut hit Hong Kong in September this year, the Sai Kung Sewage Treatment Works has since then been discharging into the sea effluent which was primary treated only. In this connection, will the Government inform this Council:
 
(1) of the details (including timetable, progress and expenditure incurred) of the inspections and repair works carried out by the authorities in respect of the damaged facilities of the aforesaid plant;
 
(2) whether it has assessed the impact on the quality of the water bodies in the areas in Sai Kung brought about by the plant’s discharge of effluent which has not been fully treated; if so, of the outcome; given that the effluent treated by the plant will be discharged into the Port Shelter via a submarine outfall, of the current compliance rates of the water bodies there on the key marine Water Quality Objectives parameters (total inorganic nitrogen, unionized ammonia and E. coli, etc.);
 
(3) whether it has assessed if the interim measures taken by the authorities during the period when the facilities concerned remained damaged can effectively alleviate the impact on the water quality brought about by the plant’s discharge of effluent which has not been fully treated; and
 
(4) whether it will comprehensively review the resilience of various sewage treatment facilities against strong wind and storm surges, and implement the necessary strengthening measures; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Our reply to the question raised by the Hon Kenneth Leung is as follows:
 
(1) After super typhoon Mangkhut hit Hong Kong in September this year, under safe conditions, staff of the Drainage Services Department (DSD) immediately inspected the damage caused to various sewage treatment facilities on September 17 and found that over 50 metres of seawall and many treatment units of the Sai Kung Sewage Treatment Works (SKSTW) were severely damaged. These included the ultraviolet (UV) disinfection system, equipment for secondary sewage treatment such as air blowers, electrical installations and sludge pumps and some pipework. As a result, only primary treatment could be maintained at that time, with partially treated effluent discharged nearshore. The DSD immediately activated a contingency plan to remove some of the boulders and debris and pump out the seawater in order to assess the damage of the mechanical facilities and arrange emergency repair. To reduce the impact to the environment, the DSD has immediately implemented an additional procedure to disinfect the effluent that was treated to primary level. On September 24, the DSD completed the restoration of some major pipework and diverted the partially treated effluent back to the original submarine outfall for dispersed discharge at a location some 400 meters from SKSTW in Port Shelter. On October 12, the DSD installed some temporary facilities to further upgrade the treatment capability to chemically enhanced primary treatment (CEPT) (Note). Initial restoration works for the damaged seawall was completed on October 3 with the assistance of the Civil Engineering and Development Department (CEDD). At present, the DSD is expediting the installation temporary facilities such as power distribution units, blowers, auxiliary pipes, sludge pumps and UV disinfection systems, with a view to resuming secondary level sewage treatment by December. However, the full repair of all treatment facilities may take some more months.
 
     The DSD’s preliminary cost estimate of the above emergency repair and temporary facilities is about $25 million. However, the full cost of all the repair and modification works is yet to be evaluated.
 
(2) and (3) In respect of the incident, the DSD and the Environmental Protection Department (EPD) commenced seawater sampling and testing near SKSTW and at three nearby beaches (i.e. Kiu Tsui Beach, Trio Beach, and Hap Mun Bay Beach) on September 21 for close monitoring of the water quality and started to release the results on the DSD’s website on September 24. The monitoring results showed that there has been no obvious sign of deterioration of water quality near SKSTW, and the effect of the incident on the three beaches has also been minimal, with the E.coli level of water samples largely remained within the normal ranges of fluctuation. As regards the water quality of the Port Shelter Water Control Zone, the monitoring data up to October 2018 (including those obtained after the incident at SKSTW) shows that the levels of E. coli, dissolved oxygen, total inorganic nitrogen and non-ionised ammonia nitrogen have fully (100 per cent) met the Water Quality Objectives. Therefore, the EPD considers that the emergency measures adopted by the DSD have been effective in mitigating the potential impact to water quality due to the typhoon damage of SKSTW.
 
(4) In order to strengthen the resilience of the seawall against extreme waves, the CEDD has taken into account the impact of climate change in the design of seawall strengthening works in accordance with the latest requirements of the Port Works Design Manual – Corrigendum No.1/2018 and adopted the most critical loading condition (i.e. 100 years extreme wave plus 10 years extreme water level). In addition, in order to counteract the long-term effect of climate change, the DSD commenced the “Climate Change Impact Study on Sewerage Facilities in Hong Kong” in 2015. The study will assess the impact of climate change on sewerage facilities in Hong Kong; and develop corresponding mitigation and adaptation measures for the planning, design, construction and maintenance of sewerage facilities and a framework plan for the continual monitoring and mitigation of climate change impact to Hong Kong’s sewerage facilities. The study is expected to complete in 2019.
 
Note: About 75 per cent of the sewage in Hong Kong is currently treated by CEPT process. read more

     Following is a question by the Hon Chan Chun-ying and a written reply by the Secretary for Financial Services and the Treasury, Mr James Lau, in the Legislative Council today (November 7):

Question:

     It is learnt that there were 16 cases of local green bond issuance in the first half of this year, raising funds of US$6.8 billion in total, which was three times the amount for the whole of last year. Some analyses have pointed out that the green industries on the Mainland will have a capital demand of about RMB3 trillion to RMB4 trillion per year during the period covered by the country’s 13th Five-Year Plan for the National Economic and Social Development, and the infrastructure projects in the countries along the Belt and Road will have a capital demand of US$1.5 trillion per year between 2016 and 2030, as estimated by the Organization for Economic Co-operation and Development. Such situations have presented opportunities for Hong Kong to develop green finance. In this connection, will the Government inform this Council:

(1) as there are views that there is a need for the Government to set up a green financial system framework comprising clear green standards, specific development guidelines and comprehensive regulations, and at present some 20 countries and regions across the globe have rolled out a green finance development roadmap, whether the Government has considered developing (i) a green financial system framework, and (ii) a green finance development roadmap; if so, of the details; if not, the reasons for that;

(2) as some analyses have pointed out that private capital participation is crucial to the development of green finance, whether the Government has considered, by making reference to the approach of the United Kingdom (UK), financing the establishment of an independent green investment bank to mobilise private capital to invest in green projects; if so, of the details; if not, the reasons for that; and

(3) whether it has considered, by making reference to the experience of countries such as the UK and Germany, boosting the development of green finance through fiscal policies, such as introducing tax concessions, offering profit tax exemption to funds investing in green finance products, as well as granting interest subsidies to green lending products; if so, of the details; if not, the reason for that?

Reply:

President,

     Our replies to the three parts of the question are as follow:

(1) and (3) Green finance is a new but rapidly expanding area of financial activities that seeks to bring a positive impact on the environment through emphasis on social responsibility and sustainable development. Riding on the increasing global demand for green financial products, Hong Kong, as an international financial centre and the global Renminbi business hub, is well-equipped to develop green finance, in particular serving as a premier financing platform for international and Mainland green enterprises/projects in raising funds through issuing bonds and initial public offerings.

     The Government is making progress on various fronts to develop and firmly establish Hong Kong as a leading hub for green finance in the region, with focus on the Mainland of China and economies along the Belt and Road. The Government would facilitate and provide the necessary infrastructure and catalyst for jump-starting market developments. We will at the same time build up our international profile on green finance with increased international visibility and proactive promotion targeting audience overseas.

     On promoting local certification for green finance products, the Hong Kong Quality Assurance Agency (HKQAA) established a Green Finance Certification Scheme (GFCS) early this year to provide third-party conformity assessments for issuers on their green financial instruments by making reference to a number of international and national standards. Representatives of the Financial Services and the Treasury Bureau and the Environment Bureau attended meetings of the HKQAA’s Technical Committee as observers upon their deliberation on the technical details of GFCS. We will continue to support GFCS’s implementation and encourage local, Mainland and overseas enterprises to make use of the Scheme and our capital markets for financing their green projects.

     Many local, Mainland and international organisations, such as the Asian Development Bank, the World Bank and the European Investment Bank, have made use of Hong Kong to issue green bonds. This attests to the strengths of our competitive capital markets. To attract more green bond issuance and promote market development in Hong Kong, the Government has launched the Green Bond Grant Scheme to subsidise eligible green bond issuers in obtaining certification under the GFCS, as well as the Pilot Bond Grant Scheme to provide grant to eligible enterprises issuing bonds (including green bonds) in Hong Kong for the first time. We have also enhanced the Qualifying Debt Instrument Scheme to provide tax concession for bond investment in Hong Kong. We hope that the Legislative Council would authorise the Government to implement the Government Green Bond Programme as soon as possible by making the proposed resolution under the Loans Ordinance to facilitate the inaugural government green bond issuance, with a view to setting a good example for the green finance market in Hong Kong and attracting more local, Mainland and international investors and financiers to participate therein. Moreover, we are reviewing the tax arrangements applicable to funds and we plan to introduce a legislation by the end of the year, so that different types of both onshore and offshore funds operated in Hong Kong, subject to certain eligibility requirements, can enjoy profits tax exemption for transactions in qualifying assets including securities, futures and shares of private companies, etc. This tax arrangement would be applicable for funds investing in green finance products which can be classified as such qualifying assets.

     We would strengthen efforts to publicise Hong Kong’s competitive capital markets, highlight our edge in developing green financial products and raise green finance awareness at regional and international forums including the Asian Financial Forum organised in Hong Kong. The Hong Kong Monetary Authority hosted the International Capital Markets Association’s Green and Social Bond Principles Annual General Meeting and Conference and a seminar with the People’s Bank of China on Mainland-Hong Kong green finance opportunities this June, which altogether attracted some 1 300 market participants.

     Furthermore, the Hong Kong Exchanges and Clearing Limited (HKEX) became a Partner of the United Nations Sustainable Stock Exchange Initiative this June, committing to further promotion of sustainable and transparent capital markets. The Securities and Futures Commission published its Strategic Framework for Green Finance this September and looks forward to fostering cross-agency and public-private collaboration to develop green finance, on which it has started discussions with the HKEX, other financial authorities, key stakeholders along the investment chain and the wider financial community.

(2) Most of the large-scale green infrastructure projects in Hong Kong, such as sewage treatment, waste management and district cooling systems, etc., are carried out by the Government. Investors who are interested in financing green projects of the Government can participate in our Government Green Bond Programme. In addition, private organisations can make use of our capital markets to issue green financial instruments. Thus, the market effect of and actual demand for a green investment bank in Hong Kong are limited at the moment.

     Moreover, the Government has various initiatives in place to support local environmental and recycling industries and attract private capital to invest in different green projects. For instance, the $1 billion Recycling Fund was launched in October 2015 to provide funding support for the local recycling industry in general or in specific sectors in enhancing their operational standards and productivity. On promoting the development of renewable energy (RE), the Government and the two power companies have introduced Feed-in Tariff Scheme under the post-2018 Scheme of Control Agreements to provide economic incentives for individuals and non-government bodies to invest in RE. read more

     Following is a question by Hon Alice Mak and a written reply by the Secretary for Transport and Housing, Mr Frank Chan Fan, in the Legislative Council today (November 17):
 
Question:
 
     I have received complaints from a number of tenants of public rental housing (PRH) alleging that quite a number of PRH units have been broken into and burgled by thieves because the metal gates of such unites had security vulnerabilities. However, the Housing Department has not actively arranged improvement works for the metal gates. In this connection, will the Government inform this Council:
 
(1) of the number of burglaries of PRH units in various PRH estates in the past three years;
 
(2) of (i) the number of complaints received by the authorities about metal gates of PRH units having security vulnerabilities, and (ii) the number of metal gates of PRH units for which improvement works were carried out by the authorities, in the past three years (with a breakdown by estates);
 
(3) of the types of metal gates installed for new PRH units by the authorities in the past three years and, among them, the respective types of metal gates (i) with complaints received about their having security vulnerabilities and (ii) the units to which they were fitted experienced a higher incidence of burglary;
 
(4) as the authorities announced in 2014 that old-type see-through collapsible gates of more than 170 000 PRH units would be replaced in the five years starting 2015-2016, of the progress of the work; whether the authorities have regularly reviewed the security level of the metal gates (including the new-type metal gates) of all PRH units in Hong Kong and carried out improvement works for the metal gates with security vulnerabilities; if so, of the time of the last review, as well as its outcome and the follow-up work; and
 
(5) whether the authorities will carry out improvement works for the metal gates with security vulnerabilities which have been provided for PRH units and for units which were sold under the Tenants Purchase Scheme, and bear the relevant repair and maintenance costs in future; if not, of the reasons for that?
 
Reply:
 
President,
 
     My consolidated reply to various parts of the question raised by the Hon Alice Mak is as follows.
 
     The Hong Kong Housing Authority (HA) has all along been attaching great importance to the security of Public Rental Housing (PRH) estates. The HA has put in place a number of security facilities, such as installing security gates with password locks at the entrances of ground floor lobbies and fire escape staircases of buildings, and providing 24-hour guard services, CCTV and telecom systems inside the lifts and at the main entrance of the buildings which are monitored by the tower guards stationed at the ground floor lobbies.
 
     The HA also places great emphasis on the training of guards. Guards are required to carry out visitors’ registration at the entrances of ground floor lobbies at PRH buildings. Guard control rooms also arrange for guards and building supervisors to patrol the buildings and provide them with necessary support. Furthermore, the HA collects feedback from tenants and disseminates messages about anti-theft through the Estate Management Advisory Committees. When necessary, assistance from Police will be sought.
 
     Tenants’ co-operation is crucial for achieving good security. In this regard, the HA periodically reminds tenants to close their main doors when leaving their flats, not to disclose the passwords of the entrance gates of ground floor lobbies to outsiders other than their family members, etc. Under safe condition, tenants are advised to notify the estate management office (EMO) or the guards immediately whenever suspicious or unknown persons are found loitering in the building premises.

     Upon receiving reports on burglary, staff of the EMO will provide appropriate assistance to the tenant. However, the HA has not maintained consolidated statistics on burglary cases concerning PRH units.
 
     In light of the problem that the old-type see-through collapsible gates require frequent maintenance due to ageing, the HA has launched a programme to replace such gates in about 170 000 PRH units from 2015-16 onwards. This five-year programme is expected to be completed in 2019-20. Up to October 2018, the HA has replaced the metal gates of about 70 per cent of such PRH units (about 120 000 units) under the programme.
 
     Other types of metal gates in PRH estates have been performing well in general. Hence, the HA has no plan to replace them. New PRH units completed in the past three years are installed with sliding metal gates.
 
     Tenants of PRH estates (including HA tenants in Tenants Purchase Scheme (TPS) estates) may contact the EMO in case they have any problem relating to the maintenance of the metal gates of their units. The EMO will deploy staff for on-site checking and follow-up. The HA will take up the maintenance costs of the metal gates, arising from normal wear and tear. Flat owners are responsible for the maintenance cost of the metal gates of sold flats in TPS estates.
 
     The HA has not maintained statistics on complaint cases about metal gates of PRH units. read more

     Following is a question by the Dr Hon Helena Wong and a written reply by the Secretary for Security, Mr John Lee, in the Legislative Council today (November 7): Question:      Last month, the Canadian authoritie… read more

The following is issued on behalf of the Office of The Ombudsman:      The Ombudsman, Ms Connie Lau, today (November 7) announced a direct investigation to examine the effectiveness of the Joint Office for Investigation of Water Seepa… read more