## Engineering
### Civil Engineering
2.30
Expenditure incurred by the Civil Engineering Office during the year under review amounted to $49,341,503 as compared with $33,098,082 in 1973-74. The increase was mainly due to (a) the settlement of a claim for loss and damage as a result of the alleged breach of a sand contract, (b) increased rate of compensation payable to the Chinese Authorities for the collection of sand and (c) a general increase in the production costs of sand and quarried stone.
### Highways
2.31
In the year under review, recurrent expenditure by the Highways Office amounted to $41,467,178 compared with the 1973-74 figure of $52,195,234. The decrease was entirely due to the fact that expenditure on rainstorm damages decreased substantially. However, expenditure on street lighting and private works increased because of increased fuel costs and additional work undertaken by the Office for private developers.
### Electrical and Mechanical
2.32
Expenditure incurred by the Electrical and Mechanical Office during 1974-75 amounted to $19,838,983 compared with $15,039,434 in the previous year. Furthermore, expenditure arising from the Office's responsibilities under the Defence Costs Agreement amounted to $3,206,685 excluding personal emoluments and works carried out by the Department of the Environment on a reimbursable basis. The increase in expenditure included general rises in maintenance contract rates, labour and material and increased activities, which were anticipated when the estimates for 1974-75 were prepared.
### Waterworks
2.33 Expenditure incurred during the year by the Waterworks Office on the operation and maintenance of the water supply system amounted to $84,199,570 as compared with $61,483,830 in 1973-74. This significant increase in expenditure was due to rising costs in the operation of the pumping system where costs of electricity and fuel oil increased substantially as a result of the oil crisis. Another factor was an increase in the contract price for the supply of chemicals to the desalting and water treatment plants.
## Heads 70-73 - Public Works Non-Recurrent
2.34
As a result of financial stringency, the value of contracts awarded in 1974-75 showed a remarkable decrease and stood at $657,117,000 compared with $1,064,112,000 recorded in 1973-74. Actual expenditure on projects under the four Heads (Headquarters, Buildings, Engineering and Waterworks), however, continued its upward trend and amounted to $1,518 million or 32.23% above that for the previous financial year. Apart from the significant increase in the value of the Public Works Programme, the effect of inflation both in terms of higher building costs in tenders for new works and in the operation of the wages and materials fluctuation clauses also accounted for the very substantial increase in capital works expenditure during the financial year under review.