Application of the polluter-pays principle in the provision of
Transcript of Application of the polluter-pays principle in the provision of
Application of the polluter-pays principle in the provision of sewage
services
December 2006
Before Harbour Area Treatment Scheme (HATS) …
• 1.8 million tonnes of untreated sewage discharged into the Harbour every day
• Causing health risk and threat to marine life
With HATS Stage 1 (Dec 2001)
• Sewage from Kowloon and Eastern Hong Kong collected• conveyed through deep tunnels• central treatment at the Stonecutters Island Sewage Treatment
Works
Improvements achieved through HATS Stage 1
• Dissolved oxygen in harbour water increased by about 10% overall
• Ammonia declined by about 24%• Overall E.coli level, an indicator of disease
causing microorganisms, reduced by some 50% overall
WQO
VM12
VM2
VM1
Overall WQO compliancein the Victoria Harbour WCZ
VM14
VM4
Tathong Channel
Rambler
Channel
Lei Yue Mun
VM6VM7VM5
VM15
Map showing the percentage of WQO compliance (DO, TIN and NH3) at each monitoring station in the Victoria Harbour Water Control Zone in 2001 and 2005, before and after the commissioning of HATS Stage 1
Ma Wan Channel
WQO compliance rate in 2005 WQO compliance rate in 2001
67%33%
67%67%
67%100%
67%33%
67%33%
100%33% 100%
33%
100%33%
100%67%
100%67%
2005 = 83%2001 = 50%
VM8
After HATS Stage 1
D OTathong Channel
Rambler
Channel
Lei Yue Mun
Ma Wan Channel
Jan 02 – D ec 03 m eanJan 00 – D ec 01 m ean
5 .65 .5
5 .65 .5
6 .25 .8
5.85.2
5.34.9
5.85.8
5.85.7
5.54.9
5.54.9
5 .34 .6 5 .5
4 .6
5 .54 .7
5.74.7
5 .75 .0
6.35.5
6.15.4
6.25.5
Water Quality Improvement Achieved by Stage 1 for Dissolved Oxygen
Dissolved Oxygen (mg/L)Dissolved Oxygen (mg/L)
E. coliTathong Channel
Rambler
Channel
Lei Yue Mun
Ma Wan Channel
1400440
37001500
39460
16002700
45005100
860410
48002000
18002100
52004300
38004300 4600
6900
30005400
110011000
3808100
96450
1101700
100830
Jan 02 – Dec 03 m eanJan 00 – Dec 01 m ean
E. coli (Count /100 mL)
Water Quality Improvement Achieved by Stage 1 for E. coli
After HATS Stage 1
LegCo’s View
• Public Accounts’ Committee Report No.42 (03/04): recommended advancing the disinfection facilities for HATS Stage 2A
• LegCo Motion Debate in December 2004:support applying polluter-pays principle in reviewing sewage services
HARBOUR AREA TREATMENT SCHEME HARBOUR AREA TREATMENT SCHEME STAGE 2ASTAGE 2A
Stage 1
Stage 2A
HONG KONG ISLAND
KOWLOON
LAMMA ISLAND
TSING YIExpansion of Stonecutters Island STW
Capital and Operating Costs for HATS Stage 2 (Updated))
Capital Cost($billion)
Annual Operating Costs
($million)Stage 2Amain worksadvance disinfectionsub-total for Stage 2A
7.870.077.94
33388
421
Stage 2Bmain worksnutrient removalsub-total for Stage 2B
8.91.910.8
430270700
Stage 2 Total 18.74 1,121
Cost estimate of HATS Stage 2
Examples of Future Major Projects other than HATS
25.2886Tai Po Sewage Treatment Works Stage 5
76.11,168Upgrade of San Wai sewage treatment works
10.8230Sai Kung sewage treatment works phase 2 upgrading
53.6834Upgrading of Pillar Point sewage treatment works
4.1271Expansion to Shek Wu HuiSewage Treatment Works
Recurrent Cost ($m)Capital Cost ($m)Future Projects
Taxpayer's subsidy if no fee adjustments(sewage services as a whole)
0
500
1,000
1,500
2,000
2,500
3,000
05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17
$M
Expenditure Subsidy
Average Sewage Charges in Major Cities
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
Edinb
urgh
Sydney
Boston
Mel
bourn
e
Londo
nN
ew Y
ork
Los A
ngele
s
Tokyo
Singa
pore
Van
couve
r
Hon
g Kong
(by
2016/
17)
Taipe
i
Hon
g Kong
(Pres
ent)
Shang
hai
Gua
ngzh
ou
Aver
age
Sew
age
Cha
rge
(HK$
/mon
th)
Projected SC fees and cost recovery rate
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17
$/m3
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Recovery rate
SC unit rate SC cost recovery rate
Modest impact on households
75.6%18.3%22>24-37>10-15
100.0%12.7%>29>49>20
87.3%11.7%29>37-49>15-20
57.3%20.9%14>12-24>5-10
36.4%20.8%7>0-12>0-5
15.6%15.6%000
Cumulative % of accounts
% of accounts
Max. Increase
SC after 10 years ($/month)
SC currently paying($/month)
Households monthly SC payment (Current)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
No need to pay >$0 to $ 5 >$5 to$10 >$10 to$15 >$15 to$20 >$20
Households monthly SC payment (projected 2016/17)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
No need to pay >$ 0 to $ 12.2 >$ 12.2 to $ 24.3 >$ 24.3 to $ 36.5 >$ 36.5 to $ 48.7 >$ 48.7
Modest impact on restaurantsCumulative % of accounts
% of accountsMax. Increase($)
SC after 10 years
($/month)
SC currently paying
($/month)
100.0%8.6%> 1 433.3> 2 433.3>1 000
91.4%8.3%1 433.3>1 216.7-2 433.3
>500-1 000
83.1%21.3%716.7>486.7-1 216.7
>200-500
61.8%19.2%286.7>243.3-486.7
>100-200
42.6%42.6%143.3<243.3<100
Restaurants monthly SC payment (Current)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
< $ 100 >$ 100 to $ 200 >$ 200 to $ 500 >$ 500 to $ 1000 >$ 1,000
Restaurants monthly SC payment (projected 2016/17)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
< $ 243 >$ 243 to $ 487 >$ 487 to $ 1,217 >$ 1,217 to $ 2,433 >$ 2,433