Operation Efficiency

Annual Sewage Treatment Volume

The operation of our Department is funded by the General Revenue Account and the Capital Works Reserve Fund. Our Department's operating expenditure is met directly from the General Revenue Account which is the Government's main account and acts as the central funding device, while the Capital Works Reserve Fund was set up to finance public works programmes, acquisition of land, capital subventions and major systems and equipment items. To optimise the use of public funds, we always enhance our sewerage and stormwater drainage services in a cost-effective and environmentally responsible manner.

Operating Expenditure in 2012-13

Summary of DSD Operating Expenditure for the Past Five Years	2008-09	2009-10	2010-11	2011-12	2012-13
	($M)
Operating Expenditure (Total)	1,657.2	1,736.9	1,776.8	1,838.6	1,910.7
Recurrent Expenditure - Personal Emoluments	699.5	693.0	685.9	727.4	769.3
Recurrent Expenditure - Departmental Expenses (including Mandatory Provident Fund & Civil Service Provident Fund)	957.3	1,035.9	1,083.8	1,111.2	1,141.4
Non-recurrent Expenditure	0.4	8.0	7.1	0.0	0.0

Operating Expenditure (Total) is $1,910.7M, $769.3M (40.3%) of Recurrent Expenditure - Personal Emoluments , $1,141.4M (59.7%) of Recurrent Expenditure - Departmental Expenses(including Mandatory Provident Fund & Civil Service Provident Fund)

Value and Number of Drainage and Sewerage Projects under Planning, Design and Construction

	Unit	2008-09	2009-10	2010-11	2011-12	2012-13
Value of drainage projects under planning,design and construction	million of HK$	13,330	13,373	12,707	14,323	11,288
Value of sewerage projects under planning, design and construction	million of HK$	33,288	36,635	39,875	41,200	49,872
No. of drainage projects under planning, design and construction	No.	34	29	24	22	20
No. of sewerage projects under planning, design and construction	No.	55	58	70	70	77

Sewage Services Operating Cost Recovery Rates

The "Sewage Services Charging Scheme" was introduced on 1 April 1995 according to the "Polluter Pays" Principle. All premises connected to public sewers are required to pay the sewage services charges. The charges were set to recover only the operating and maintenance costs of the public sewage facilities, while the capital costs of building these facilities will continue to be borne by the Government.

The sewage services operating cost recovery rates for 2011-12 and 2012-13 are as follows:

	Total
	2011-12	2012-13
Revenue of Sewage Charge and Trade Effluent Surcharge ($M)	907	983
Expenditure (excluding depreciation) of Sewage Charge and Trade Effluent Surcharge ($M)	1,443	1,498
Operating Cost Recovery Rate (%)	62.9	65.6

Notes :

"Miscellaneous services" are excluded from the above calculation.
Depreciation is at present not recovered through the Sewage Charge and Trade Effluent Surcharge.
The 2012-13 revenue and expenditure are only provisional and are subject to endorsement by the Sewage Services Accounts Committee.

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Director's Statement

About the Report

The Year's Highlights

Governance Approach

Our Core Responsibilities

Managing the Environment

Engaging the Community

Collaboration with Working Partners

Operation Efficiency

Caring Our Staff