*********************************************

    Following is a question by the Hon Patrick Lau Sau-shing and an oral reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, in the Legislative Council meeting today (May 25) :

Question:

    Regarding the treatment of waste oil in Hong Kong, will the Government inform this Council:

(a)  of the quantity of waste oil treated in Hong Kong and the expenses incurred in each of the past five years, as well as the respective percentage shares of such expenses borne by the authorities and the waste oil producers;

(b)  of the name of the operator commissioned to handle waste oil treatment currently, as well as the commencement and expiry dates of the contract awarded to the operator; and

(c)  whether it has drawn up any plans for the arrangements upon the expiry of the above contract; if not, the reasons for that?

Reply:

Madam President,

(a)  During the 5-year period between 2000 and 2004, the quantity of waste oil, including land-based waste oil and waste oil from ocean going vessels, collected by the Chemical Waste Treatment Centre (CWTC) at Tsing Yi were 30,500 tonnes , 44,000 tonnes, 35,000 tonnes, 30,400 tonnes and 25,200 tonnes respectively.  Over the same period, the corresponding variable costs of treating the waste oil at the CWTC were $116 million, $149 million, $118 million, $99 million and $83 million respectively.

    The CWTC is a government facility and the Government pays the operating cost in accordance with the contract.  In the past 5 years, the average charge paid by chemical waste producers was only about 34% to 41% of the variable operating cost.  That is, the Government has been providing a subsidy to chemical waste producers, which was about 59% to 66% of the variable operating cost.

(b)  The CWTC was commissioned in April 1993.  It is now operated by the Enviropace Ltd. under a Government contract and the contract will expire in April 2008.

   In addition to the CWTC, there are three private chemical waste disposal facilities that are licensed to treat waste oil in Hong Kong.  The largest of these facilities which collects waste lubrication oil are from local public transport companies, government fleet as well as machinery and vehicle maintenance workshops etc for recycling into recycled lubrication oil.

(c)  As the contract of CWTC will expire in 2008, the Environmental Protection Department is now conducting a study on the future of the CWTC.  The main objectives of the study are to review chemical waste arisings in Hong Kong and the scope and extent of services that need to be provided by the future CWTC and to prepare a conceptual design for any modifications or new facilities provisions that may be required.  It is anticipated that this work would be completed by 2006.

Ends/Wednesday, May 25, 2005

NNNN