Jeremy Mark SPARROW - Drainage Services Department

SCA 2018 Construction Manager - Excellent Award

Practices

The HATS Stage 2A project expands Drainage Services Department’s facilities for treatment of 70% of the HKSAR’s sewage. The works include upgrading of Stonecutters Island Sewage Treatment Works (SCISTW) and Preliminary Treatment Works (PTWs) in the northern and southwestern parts of Hong Kong Island, and construction of the related Sewage Conveyance System. SCISTW is one of the world’s largest chemically enhanced primary treatment facilities. Its treatment capacity is 2.45 million cubic metres per day, and serves up to 5.7million people. The full commissioning of the HATS project greatly improves water quality in Victoria Harbour and surrounding near-shore areas, and enables the sustainable development of the harbour area.

Main Pumping Station No. 2 (MPS2) at SCISTW is one of the World’s largest underground sewage pumping stations. MPS2 is circular on plan, with an internal diameter of 55m and depth of 40m.

8 sets of sewage pumps have been installed inside MPS2, each with a capacity of 4m³/s. The combined capacity can fill up a standard swimming pool less than 1 minute.

An interconnection tunnel links the two main pumping stations. This enhances operational flexibility and system robustness.

The interconnection tunnel was constructed using a tunnel boring machine. Artificial ground freezing techniques with brine were adopted to stabilize the surrounding soil mass for key interface areas. This is the first time that such methods have been adopted in Hong Kong.

Marine Vessels (Clean Harbour 1&2) deliver all sludge from SCISTW to the Sludge Treatment Facility to minimize the traffic and environmental impacts compared with land transportation.

The vessels adopt “Diesel-electric propulsion”, with onshore power supply when berthed. No combustion of fuel is required during berthing, and therefore zero emissions can be achieved.

About the Model

The HKSAR Chief Executive had announced in the 2017 Policy Address to position Hong Kong as an Asia’s green finance hub for raising green capital. In view of the substantial GDP contributed by the construction sector annually, the construction industry has a high potential to meet the trend of green finance. Thus, there is a need to well define the green standard and system to facilitate the application of green finance in construction industry.

The Model aims to act as an interactive guide on environmental practices and advanced technologies for construction projects which is compatible with international green bond/loan principle. Green finance can mobilise capital for green and low carbon investments in the construction industry. Public owners, developers, contractors and suppliers could issue green financial instruments for funding their projects with reference to the guideline of this model.

Interactive guide to classify construction practices based on green finance principle

Interactive guide to classify construction practices based on green finance principles

User-friendly model for set up its own checklist and sustainability KPIs

User-friendly model for set up its own checklist and sustainability KPIs

Sustainable hub to share latest local and intentional solutions

Sustainable hub to share latest local and international solutions

Why the Industry Needs Green Finance?

  • Green finance providing benefits for assisting the transition from the ‘brown’ to the ‘green’ construction.
  • Green finance can mobilise capital for green and low carbon investments in the construction industry
  • Stakeholders can seek opportunities for long pay back initiatives and low interest rates when adopting advanced and innovative measures.
  • To encourage investors from the Mainland along the Belt and Road as well as international investors to arrange green financing through Hong Kong construction capital markets.

Components of Green Bond/Loan Principles

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Green bond/ loan proceeds are to be applied for environmental (or “green”) projects with an indicative list of eligible project categories. See the figure below for the 10 eligible Green Project Categories.

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Recommends issuers/ borrowers to disclose their overall green objectives, the process used to determine eligibility of green projects, and the process to manage environmental and social risks of these projects.

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The net proceeds of the Green Bond/ Loan, or an amount equal to these net proceeds, should be credited to a sub-account, moved to a sub-portfolio or otherwise tracked by the issuer/ borrower in an appropriate manner, and attested to by the issuer/ borrower in a formal internal process linked to the issuer’s/ borrower’s lending and investment operations for green projects.

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Recommends annual reporting of the amounts allocated and results of the eligible green projects.

Green Project Categories

Key Features

no. of sustainability measures compatible with international green bond and green loan principle
41
no. of sustainability measures compatible with international green bond and green loan principles
no. of stakeholders and green finance experts engaged
162
no. of stakeholders and green finance experts engaged
no. of pilot projects
30
no. of pilot projects

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