Highways
2.28
In the year under review, recurrent expenditure by the Highways Office amounted to $50,734,678 compared with the 1974-75 figure of $41,467,178. The increase was mainly due to (a) an increase in electricity charges and fuel costs for street lighting, (b) additional maintenance work on roads and bridges as a result of exceptionally high rainfall in the summer and (c) a sum of about $1 million spent on a contract for Mass Transit Railway traffic diversions.
Electrical and Mechanical
2.29 Expenditure incurred by the Electrical and Mechanical Office during 1975-76 amounted to $16,585,824 compared with $19,838,983 in the previous year. Furthermore, expenditure arising from the Office's responsibilities under the Defence Costs Agreement amounted to $3,285,399 excluding personal emoluments and works carried out by the Department of the Environment on a reimbursable basis. The decrease was mainly due to reductions in fuel oil usage at the Lai Chi Kok and Kennedy Town incinerators, the non-delivery of stores and the deferment in the purchase of spare parts during the year.
Waterworks
2.30
Expenditure incurred during the year by the Waterworks Office on the operation and maintenance of the water supply system amounted to $107,334,344 as compared with $84,199,570 in 1974-75. This significant increase in expenditure was mainly due to the operating costs of the desalting plant which amounted to $24.94M as compared with $2.81M in 1974-75. It should be noted here that expenditure would have been much higher had the period of tests on completion for No.2 to No.6 Units not been curtailed from the specified 180 days to 30 days and had there been no delays in the commissioning of No.3 to No.6 Units as a result of shortage of acid supply.
Heads 70
2.31
74 - Public Works Non-Recurrent
The value of contracts awarded in 1975-76 showed only a marginal increase of $8,908,000 compared with $657,117,000 recorded in 1974-75. However, actual expenditure on projects under the five Heads (Headquarters, Buildings, Engineering, New Towns and Public Housing (other than Housing Authority and Waterworks) reversed its upward trend and a total sum of $1,146,789,268 only was spent during the year, representing a decrease of $371,266,938 or 24.46% as compared with the previous financial year. The main reason for this decrease was a substantial reduction in contract prices, largely because of greater competition in tendering and a decline in the cost of labour and materials throughout 1975. Other reasons were as follows:-
(a) Work on new projects included in the estimates for the first time could not be commenced until the Appropriation Ordinance, 1975 became law in May, 1975. This situation has been rectified in 1976-77 so that contracts can be signed and a
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