Ministry of Economic Affairs Releases the 2024 National Electricity Supply and Demand Report

Source: Republic of China Taiwan

On September 26, the Ministry of Economic Affairs (MOEA) released the “2024 National Electricity Supply and Demand Report,” outlining Taiwan’s electricity demand forecast and power development plans for the next decade (2025-2034). Taking into account the impacts of the AI technology development, semiconductor industry expansion, the implementation of reciprocal tariffs by the United States, and reflecting the anticipated results of deep energy-saving measures, the report projects an average annual electricity demand growth rate of approximately 1.7%. Taiwan will continue to promote a variety of renewables and gas-fired power plants, ensuring a stable supply of electricity.

According to the MOEA, global demand for AI and emerging technology applications remains strong in 2025; however, production in some industries has slowed down as a result of the U.S. reciprocal tariffs. Under these opposing forces balanced out, the economy grew by 6.75% in the first half of the year (January-June), while electricity consumption declined by 1.1% compared to the same period last year. The MOEA further explained that projections of future electricity demand have already taken into consideration factors such as the adjustment to meet the expansion schedules of semiconductor plants and investment developments in major AI and emerging industries. The Report also reflects energy-saving effects of the Deep Energy-Saving Initiative, estimating an average annual electricity demand growth rate of about 1.7% from 2025 to 2034, which is similar to the electricity consumption trends of major industrial competitors such as Japan and South Korea.

In terms of electricity supply, the MOEA noted that Taipower is still performing safety inspections related to the natural gas pipeline leak at Xingda Power Plant on September 9 this year. Since construction work was affected by the incident, the commissioning of Xingda’s new No. 2 gas-fired unit is expected to be delayed until May 2026. The Report provides a pragmatic assessment of the progress in constructing new gas-fired generation units at Taipower’s Taichung, Tongxiao, and Dalin power plants. The report also includes the latest Independent Power Producers (IPP) gas-fired power projects such as Kuo Kuang Power and Mai Liao Power. The report projects gas-fired power generation to add a net 12.2GW of capacity over the 2025-2034 period, which meets long-term power demand growth, while maintaining stable electricity supply for the evening hours.

Regarding the expansion of renewable energy installations, the MOEA stated that it will continue to promote renewable energy sources such as solar photovoltaics, offshore wind, geothermal, and small hydropower, in accordance with President Lai’s Second Energy Transition policy, so to achieve the targets of 20% renewables by November 2026 and 30% by 2030. At the same time, the MOEA is taking a pragmatic approach in reviewing the current status of the power system. When solar electricity is abundant during the day, and electricity supply pressure shifts to evening peak hours, high-efficiency gas-fired power units will serve as the main source of night time power, with energy storage systems and hydropower dispatched as needed.

Lastly, the MOEA emphasized that, in light of the rapidly changing international trade situation, the government must conduct annual reviews on a rolling basis, taking all electricity demand into account and assessing both industrial and residential electricity needs. Under the Energy Transition policy and the Net-Zero pathway, the government is proactively promoting various power programs to foster a low-carbon environment while ensuring a stable electricity supply.

Spokesperson: Deputy Director General, Chih-Wei Wu
Energy Administration, Ministry of Economic Affairs
Phone: +886-2-2775-7750 / +886-922-339-410
Email: cwwu@moeaea.gov.tw

Business Contact: Director, Yu-Chuan Hsia
Energy Administration, Ministry of Economic Affairs
Phone: +886-2-2775-7753 / +886-910-668-295
Email: yhhsia@moeaea.gov.tw

Speech by STL at IATA World Sustainability Symposium

Source: Hong Kong Government special administrative region

Following is the speech by the Secretary for Transport and Logistics, Ms Mable Chan, at the IATA World Sustainability Symposium today (October 21):

Mr Walsh (Director General of the International Air Transport Association (IATA), Mr Willie Walsh), Patrick (Chair of Cathay Group, Mr Patrick Healy), Ronald (Chief Executive Officer of Cathay Group, Mr Ronald Lam), distinguished guests, ladies and gentlemen,

A warm welcome and good morning to you all. For friends from afar, welcome to Hong Kong. It is my great honour to address this esteemed gathering this morning at the World Sustainability Symposium. I stand before you today with a deep sense of purpose, as we come together to chart a path toward a more sustainable future for the aviation industry globally and for Hong Kong.

First and foremost, I would like to express my heartfelt gratitude to IATA and the Cathay Group for inviting me to speak at this prestigious occasion, which is one of IATA’s signature events of the year. It is a fitting choice for you to host the third edition of the symposium here in Hong Kong – a city that we all love and has emerged as a leading player in sustainable aviation in the region. I have heard that this year’s edition has brought together nearly 500 participants from all over the world, including senior executives, professional experts, and thought leaders in the field of green aviation. I warmly welcome all of you to Hong Kong and sincerely hope you take some time to explore and enjoy the vibrancy and warmth in Hong Kong. This hotel is well-situated, where you can have a good perspective of our harbour.

My bureau oversees not only aviation but also land transport, maritime and logistics. Not only are we charting a path towards green aviation, we have also promulgated a series of action plans and blueprints to promote green transport and green shipping.

Our presence here today underscores a shared commitment to achieving a sustainable future for aviation. With so many distinguished experts in the room, I need not reiterate the critical importance of sustainability and decarbonisation in the aviation sector. This symposium provides a unique platform for leaders from around the world to exchange perspectives and provide solutions on green aviation. As we embark on this dialogue, I would like to begin by sharing Hong Kong’s achievements and our forward-looking blueprint for building a sustainable aviation ecosystem.

When we speak of sustainability in aviation, our recent focus must be on sustainable aviation fuel, or SAF. This is indeed a complex and multifaceted challenge that demands co-operation and collaboration amongst a wide array of stakeholders, including governments, airlines, fuel suppliers, industry partners, and the traveling public. In Hong Kong, we are taking decisive steps to develop a SAF industry and promote the use of it at Hong Kong International Airport (HKIA). In our view, it is of utmost importance that we join hands to scale up the production of SAF, as we all know that it is currently the only practical means for international aviation to decarbonise.

The HKSAR (Hong Kong Special Administrative Region) Government is dedicated to fostering a robust SAF supply and its supply chain in collaboration with Mainland authorities and local enterprises, from upstream raw material collection to the establishment of production plants and large-scale production and supply. Given Hong Kong’s close proximity to the Chinese Mainland, which has the largest supply of used cooking oil, we are leveraging this advantage to create a significant SAF supply for Hong Kong. Moreover, as 100 per cent neat SAF cannot be uplifted to aircraft at this moment, we are actively exploring the construction of a SAF blending facility right here in Hong Kong. This facility aims to support the provision of competitively priced SAF-blended jet fuel in the long run, hence raising the competitiveness of Hong Kong’s SAF industry. By doing so, we also aim to strengthen the bargaining power of airlines operating from HKIA, ultimately fostering HKIA’s competitiveness as an international aviation hub.

On this floor, I know that Cathay Pacific Group has been leading and is very dedicated in pushing forward the use of SAF. Of course, we would work closely with Cathay as our close partner. We are also mindful of the pragmatic and practical considerations faced by different airlines in Hong Kong. In a way, we hope to create a critical mass and to achieve and secure a reasonably priced SAF supply and production to enable us to create a robust supply chain for SAF in Hong Kong. With the above measures in place and subject to regional SAF industry development, we adopt a vision to achieve a SAF consumption ratio of 1 per cent to 2 per cent for flights departing from HKIA by 2030 as a starting point to drive momentum.

     “The Chief Executive’s Policy Address” announced just last month includes quite some paragraphs on how we would strive ourselves to achieve the SAF consumption target. We, in a recent briefing for our legislature, disclosed the target that I mentioned just now. I received a lot of feedback asking whether Hong Kong could set a more aggressive target. Replying to the stakeholders and the legislative councillors was that we want to be pragmatic and realistic. We want to put it into action. So, we set a target which we hope to achieve. That is a starting point, and this should not preclude or hinder us from setting an even more aggressive target along the way.

Apart from the industry and aviation partners, I think public education is also very important. As we take people along from places to places, the travelling public need to raise their awareness for green aviation. It helps build a collective understanding of the role SAF plays in reducing aviation’s carbon footprint. The Airport Authority Hong Kong (AAHK) will, for instance, launch targeted publicity and promotional campaigns to raise awareness among the public and corporations about the importance of SAF, and the need for everyone to do their part. By engaging communities and businesses, we aim to create a culture of sustainability that supports long-term environmental goals. I think this culture of sustainability is the basic, core element and spirit that IATA has also been promoting around the globe.

Speaking of AAHK, I am proud to highlight their unwavering commitment to sustainability. Apart from SAF that I spoke of a lot, together with key aviation-related business partners, AAHK is dedicated to achieving Net Zero Carbon by 2050, a bold step making HKIA the world’s greenest airport. Their efforts to embed sustainability into new developments at HKIA, integrate environmental best interests and practices, and address climate change and resilience given the airport’s coastal location have all gained significant momentum. Initiatives such as trialing renewable diesel, expanding the use of electric and autonomous vehicles on the Airport Island, as well as continuously upgrading its equipment by incorporating more energy-efficient installation and technologies reflect a holistic approach to sustainable development at HKIA.

We are all acutely aware that the journey to a sustainable future in the aviation sector is not a solo mission. It is a global challenge and mission that requires collaboration across borders, industries, and sectors. The HKSAR Government is committed to playing a pivotal role by leading, offering policy support, driving innovation and technology, and most importantly, cultivating an enabling environment for sustainable aviation. Our door is always open. We will maintain close communication with international organisations, airlines, the airport community, fuel suppliers and industry stakeholders to tackle pressing challenges and difficulties. As Dr Thomsen (Senior Vice President Sustainability and Chief Economist of IATA, Dr Marie Owens Thomsen) just mentioned, it is not just saying when there is a will, there is a way. We have to create ways so as to make our will works. It is the time not for words, but for action.

Last but not least, international collaboration is paramount in this endeavor. No single city, country, or organisation can achieve net zero alone. We must share knowledge, pool resources and align our strategies to create a unified global response to the climate crisis. We have been facing very frequent super typhoons over the past weeks and months in Hong Kong, which is quite unprecedented. Our airport and aviation community have been making our best efforts to respond, recover and resurrect, but nothing is more important than tackling this issue at the heart of the problem and do it with passion and determination. And that, ladies and gentlemen, is precisely why gatherings like this symposium are vital for fostering such partnerships.

I truly look forward to the rich discussions and innovative insights that will emerge from this symposium, sparking actionable outcomes. And with the talent and the dedication I see in this room, I am more than confident that we can turn the vision of net zero by 2050 into a reality. It’s a goal championed by IATA, but it’s a future we will build together.

Lastly, I wish you all productive, inspiring and impactful sessions ahead. Thank you very much.

(Please also refer to the Chinese portion of the speech.)

Speech by DSJ at International Conference of Legal Regulators 2025 (English only) (with photo)

Source: Hong Kong Government special administrative region

     Following is the speech by the Deputy Secretary for Justice, Dr Cheung Kwok-kwan, at the International Conference of Legal Regulators 2025 today (October 21):

President Tong (President of The Law Society of Hong Kong, Mr Roden Tong), Dr Kelvin Wong (Chairman of the Securities and Futures Commission of Hong Kong), distinguished guests, ladies and gentlemen,

     Good morning. It is my pleasure to join you all at the International Conference of Legal Regulators today. My warmest welcome to the leaders and representatives from across the global legal regulatory community. I am particularly delighted that Hong Kong has been chosen as the venue for hosting the conference this year. Your presence here reflects our shared commitment to upholding the highest standards of the legal profession.

     The theme of this year’s Conference, “New Ways to Regulate in a Changing World?”, is not only timely but profoundly critical. We are navigating an era of unprecedented and simultaneous transformation. Breakthroughs in technology and global economic shifts present both opportunities and challenges for legal regulators worldwide. Our discussions over the coming days will focus on fostering a resilient and adaptive regulatory environment, which is essential for upholding the rule of law.

     In Hong Kong, our approach to these global challenges is firmly anchored in our constitutional principle of “one country, two systems”. This principle, enshrined in our Basic Law, is the bedrock of our success and stability. It is the foundation that underpins our common law system, which continues to operate robustly.

     Central to this system is the independent exercise of legal and regulatory powers. Our Judiciary exercises independent judicial power free from any interference. Similarly, the regulation of legal practitioners is handled independently by the legal profession itself. The Law Society of Hong Kong and the Hong Kong Bar Association, as the self-regulatory bodies for their respective professions, perform this critical function with the highest degree of professionalism, integrity, and diligence. Their work in upholding stringent ethical standards, ensuring professional competence, and administering a fair disciplinary system is conducted strictly in accordance with the law, free from interference. This independent self-regulation is a cornerstone of our legal framework and a key reason for the immense international confidence placed in Hong Kong’s status as a leading international legal and dispute resolution hub.

     While our foundations are strong, we are facing several new challenges.

     First, technological disruption, particularly the development of artificial intelligence (AI), is fundamentally reshaping the practice of law. These tools offer potential to enhance efficiency, reduce costs, and improve access to justice. However, they also pose regulatory questions on accountability, confidentiality of clients, and ethical practice.  

     At present, the laws in Hong Kong protect the legitimate rights and interests of individuals, enterprises and various other organisations in different spheres. To manage potential risks in promoting the ongoing technological development, the Department of Justice will establish an interdepartmental working group to review the legislation needed to support a wider application of AI. This initiative is part of our broader strategy to encourage AI applications across different sectors, while ensuring that regulatory frameworks keep pace with technological advancements.

     Second, the expansion of cross-border trade amplifies the need for mediation and arbitration, which in turn necessitates a stronger regulatory framework for such services. The Department of Justice established the Working Group on Mediation Regulatory System in October last year to review the regulatory system for the accreditation and disciplinary matters of the mediation profession in Hong Kong, and to make recommendations on enhancing the professionalism of mediators. We will implement measures for strengthening the system for the mediation profession in Hong Kong by the end of this year, as well as take forward the relevant legislative work next year. These efforts aim at ensuring our regulatory frameworks remain fit for purpose in a globalised and increasingly mediated legal environment.

     Third, the increasing cross-border nature of legal practice challenges our traditionally jurisdiction-specific regulatory models. This requires the enhancement of cross-border co-operation. Exchange of insights, sharing of best practices, and building mutual understanding through collaboration is necessary.

     Hong Kong is proud to contribute to this vital global conversation. Our unique position as a gateway between the East and the West, along with our professional legal sector and robust common law system, make us a “super connector” in the field of legal regulation.  

     Through this conference, we can pioneer the new regulatory pathways. I have every expectation that your deliberations over the next two days will be immensely stimulating, pioneering, and productive.

     I thank The Law Society of Hong Kong once again for its sterling efforts in hosting this pivotal event. To our distinguished international guests, I wish you a successful conference and a delightful stay in Hong Kong. Thank you very much.

  

Scholarship applications open

Source: Hong Kong Information Services

Applications for the Hong Kong Scholarship for Excellence Scheme are open from now until December 31, the Education Bureau announced today.

Hong Kong students who intend to pursue undergraduate or postgraduate studies at world-renowned universities outside of Hong Kong beginning from the 2026-27 academic year are eligible to apply.

The bureau said the scheme targets outstanding Hong Kong students. It seeks to cultivate a cadre of brilliant young achievers with a sense of social responsibility and national identity, as well as an affection for Hong Kong and an international perspective, who will return home after receiving a world-class education to enrich Hong Kong’s talent pool and competitiveness in the long run.

Selection will be based on academic achievements and other attributes such as leadership qualities and potential, as well as students’ contributions and commitment to society.

Awardees will receive a non-means-tested scholarship to cover their tuition fees, capped at $300,000 per annum. In addition, those who pass the means test will receive a bursary of up to $200,000 per annum to cover living and study-related expenses.

They will also receive support and mentorship services from the Government and other sectors of the community.

Awardees are required to complete their study programmes and undertake to return to Hong Kong upon graduation to work for at least two years or a period equivalent to the duration of the scholarship received, whichever is longer.

Applications can be submitted online. Shortlisted applicants will be invited to attend interviews from April 2026 after receiving unconditional offers from their chosen programmes.

Import of poultry meat and products from areas in Canada and France suspended

Source: Hong Kong Government special administrative region – 4

     The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department announced today (October 20) that in view of notifications from the World Organisation for Animal Health (WOAH) about an outbreak of highly pathogenic H5N1 avian influenza in the Rural Municipality of Ste. Rose of Manitoba Province in Canada, and an outbreak of highly pathogenic H5 avian influenza in Loire-Atlantique Department in France, the CFS has instructed the trade to suspend the import of poultry meat and products (including poultry eggs) from the above-mentioned areas with immediate effect to protect public health in Hong Kong.

     A CFS spokesman said that according to the Census and Statistics Department, no poultry meat or eggs were imported into Hong Kong from Canada in the first six months of this year; and Hong Kong imported about 400 tonnes of chilled and frozen poultry meat, and about 20 000 poultry eggs from France in the first six months of this year. 

     “The CFS has contacted the Canadian and French authorities over the issues and will closely monitor information issued by the WOAH and the relevant authorities on the avian influenza outbreaks. Appropriate action will be taken in response to the development of the situation,” the spokesman said.

National worker delegation visits HK

Source: Hong Kong Information Services

The Delegation of National Model Workers & Craftsmen arrived in Hong Kong today to start a four-day visit.

At the invitation of the Hong Kong Special Administrative Region Government, All-China Federation of Trade Unions Vice Chairman Wei Dichun led the delegation to visit Hong Kong.

National Model Worker, National Advanced Worker and National Great Craftsman are national honorary titles. Members of the delegation include seven top elites from various fields, namely Gao Fenglin (aerospace), Hong Jiaguang (aviation), Duan Jiangnan (AI), Zhan Chunpei (maritime), Zhu Yiqing (finance), Liu Zhong (catering) and Yang Jun (cultural arts).

After arriving in Hong Kong in the afternoon, the delegation attended a welcome ceremony organised by the Hong Kong SAR Government.

Speaking at the ceremony, Deputy Chief Secretary Cheuk Wing-hing expressed heartfelt gratitude to the Hong Kong & Macao Work Office of the CPC Central Committee and the Hong Kong & Macao Affairs Office (HKMAO) of the State Council for their full support in facilitating this visit, which fully demonstrated the great importance and care that the country attaches to Hong Kong, cheering on Hong Kong workers and injecting positive energy into society.

He said the Hong Kong SAR Government and all sectors of society attach great importance to the value of labour and hope that the visit of the delegation will enhance the national pride and patriotism of Hong Kong people as well as inspiring employees in all industries to embrace changes and be dedicated at work.

Director-General of the Social Work Department of the Liaison Office of the Central People’s Government in the Hong Kong SAR Liu Songlin; Head of Second Division, Fifth Bureau of the Hong Kong & Macao Work Office of the CPC Central Committee and the HKMAO of the State Council Li Xinyu; Secretary for Labour & Welfare Chris Sun; Permanent Secretary for Labour & Welfare Alice Lau; and Commissioner for Labour Sam Hui also attended the ceremony.

The delegation attended a welcome dinner hosted by Chief Secretary Chan Kwok-ki in the evening.

Mr Chan said that the delegation’s visit to Hong Kong is of great significance in promoting the public’s understanding of the spirit, excellent qualities and outstanding contributions of National Model Workers, National Great Craftsmen and National Advanced Workers. The Hong Kong SAR Government warmly welcomes the delegation’s visit to Hong Kong.

He also firmly believed that the hard work and outstanding achievements of the delegation members will motivate all sectors of Hong Kong society to continue to strive for excellence and pursue their aspirations, and further unite social forces to jointly contribute to promoting national development and improving people’s well-being.

Delegation of National Model Workers and Craftsmen starts Hong Kong visit (with photos)

Source: Hong Kong Government special administrative region

Delegation of National Model Workers and Craftsmen starts Hong Kong visit  
At the invitation of the Hong Kong Special Administrative Region (HKSAR) Government, Vice Chairman of the All-China Federation of Trade Unions, Mr Wei Dichun, led the delegation to visit Hong Kong, aiming to enhance public understanding of the outstanding qualities and remarkable contributions of the National Model Workers, National Advanced Workers and National Great Craftsmen, show support for the labour force and inject positive energy into society.
 
National Model Worker, National Advanced Worker and National Great Craftsman are national honorary titles. Members of the delegation include seven top elites from various fields, namely Mr Gao Fenglin (aerospace), Mr Hong Jiaguang (aviation), Mr Duan Jiangnan (AI), Ms Zhan Chunpei (maritime), Ms Zhu Yiqing (finance), Mr Liu Zhong (catering) and Mr Yang Jun (cultural arts).
 
After arriving in Hong Kong in the afternoon, the delegation attended a welcome ceremony organised by the HKSAR Government. Speaking at the ceremony, the Deputy Chief Secretary for Administration, Mr Cheuk Wing-hing, expressed heartfelt gratitude to the Hong Kong and Macao Work Office of the CPC Central Committee and the Hong Kong and Macao Affairs Office (HKMAO) of the State Council for their full support in facilitating this visit, which fully demonstrated the great importance and care that the country attaches to Hong Kong, cheering on Hong Kong workers and injecting positive energy into society. The HKSAR Government and all sectors of society attach great importance to the value of labour and hope that the visit of the delegation will enhance the national pride and patriotism of Hong Kong people as well as inspiring employees in all industries to embrace changes and be dedicated at work.
 
The Director-General of the Social Work Department of the Liaison Office of the Central People’s Government in the HKSAR, Mr Liu Songlin; the Head of Second Division, Fifth Bureau of the Hong Kong and Macao Work Office of the CPC Central Committee and the HKMAO of the State Council, Mr Li Xinyu; the Secretary for Labour and Welfare, Mr Chris Sun; the Permanent Secretary for Labour and Welfare, Ms Alice Lau; and the Commissioner for Labour, Mr Sam Hui, also attended the ceremony.
 
The delegation attended a welcome dinner hosted by the Chief Secretary for Administration, Mr Chan Kwok-ki, in the evening. Mr Chan said that the delegation’s visit to Hong Kong is of great significance in promoting the public’s understanding of the spirit, excellent qualities and outstanding contributions of National Model Workers, National Great Craftsmen and National Advanced Workers. The HKSAR Government warmly welcomes the delegation’s visit to Hong Kong. He said he firmly believed that the hard work and outstanding achievements of the delegation members will motivate all sectors of Hong Kong society to continue to strive for excellence and pursue their aspirations, and further unite social forces to jointly contribute to promoting national development and improving people’s well-being.
Issued at HKT 21:25

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Mediation HQ starts operations

Source: Hong Kong Information Services

The International Organization for Mediation (IOMed) commenced operations today, providing mediation services for disputes between states, international investment and international commercial disputes.

The inauguration ceremony was attended by Chief Executive John Lee, representatives of the IOMed’s contracting states, as well as 87 senior officials from 31 states out of the 37 signatory states.

Mr Lee said: “In these times of global instability, international mediation is indispensable for resolving disputes, preserving relationships and encouraging meaningful co-operation. With our world-class professional services, Hong Kong is dedicated to supporting the cause of dispute resolution.”

IOMed Governing Council Chairperson Hua Chunying remarked that the IOMed offers a new platform in the field of international rule of law, and its vision is highly consistent with that of the Global Governance Initiative of China.

IOMed Secretary-General Prof Teresa Cheng also noted the organisation practises multilateralism, serving as a global pillar in the peaceful settlement of international disputes.

Housed at the renovated Old Wan Chai Police Station, the IOMed headquarters is equipped with state-of-the-art mediation rooms and breakout rooms, with the building’s architectural features preserved.

SJ to attend APEC meeting in Korea

Source: Hong Kong Information Services

Secretary for Justice Paul Lam will depart for Korea tomorrow afternoon, where he will attend the 2025 Asia-Pacific Economic Cooperation (APEC) Structural Reform Ministerial Meeting in Incheon and speak at the discussion sessions.

On October 22 and 23, Mr Lam will attend a joint session of the Finance Ministers’ Meeting and the Structural Reform Ministerial Meeting, and the Structural Reform Ministerial Meeting.

The Structural Reform Ministerial Meeting this year is themed “Future Direction & Role of Structural Reform in addressing emerging challenges”, and ministers from APEC member economies will discuss how to build a sustainable future through structural reforms and the implementation of law and policies.

Mr Lam will also attend a joint legal workshop co-organised by the Department of Justice and the Ministry of Justice of Korea.

His other engagements during this trip include a visit to the United Nations Commission on International Trade Law Regional Centre for Asia & the Pacific, and a local arbitration institution.

Mr Lam will return to Hong Kong on October 25. During his absence, Deputy Secretary for Justice Cheung Kwok-kwan will be Acting Secretary.

Govt plugs procurement loopholes

Source: Hong Kong Information Services

Secretary for Financial Services & the Treasury Christopher Hui today announced that the Government Logistics Department (GLD) has implemented six quick-win measures, as proposed by the Task Force on Review of Government Procurement Regime to plug loopholes in government procurement procedures as soon as possible.

Mr Hui pointed out that while the incident on the procurement of bottled drinking water clearly involved suspected fraudulent acts by a particular company, it also revealed that the perceptiveness and alertness of the relevant officers in conducting due diligence checks and addressing potential fraudulent acts could not adapt to the current business environment and were obviously below reasonable expectations.

He said: “The task force and I consider it essential to tackle the problem at source through reshaping the work culture, enhancing the capability of procurement officers in exercising due diligence and empowering officers with sufficient authorities on the regime level. This will help ensure greater effectiveness for officers in handling procurement matters in future, not only serving as advocates of fair competition, but more importantly, as gatekeepers for government procurement.”

The six quick-win measures focus on three aspects, namely institutional change, enhancement of cross-departmental information exchanges and reshaping of work culture.

They are to promulgate internal guidelines to stipulate specific requirements on due diligence checks; set up a Procurement & Stores Management Audit Section to step up inspections; revise Standard Terms & Conditions of Tenders & Contracts (STC) to strengthen vetting and contract management power; establish a digital database for information sharing; strengthen staff training to guard against fraud; and build a culture of ownership at work.

The Financial Services & the Treasury Bureau has directed the GLD to implement these six measures immediately.

The task force expects to publish a review report before the end of this year to put forward solutions that address both symptoms and root causes, with a view to further enhancing the Government’s procurement work.

Separately, the GLD is reviewing in detail the tender requirements of the contract for the supply of bottled drinking water to government offices.

In order to keep tabs on the market pulse prior to tendering, the GLD published a market research notice on its website today, inviting interested suppliers to submit responses in a month’s time. The GLD aims to launch the tender exercise for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands, with the relevant responses taken into account, by the end of this year.

Mr Hui also released today the management letter submitted by the Audit Commission on its review of the tender exercise for the procurement of bottled drinking water. He thanked the Audit Commission for providing numerous recommendations, the directions of which align with the six quick-win measures and the long-term enhancement measures being explored by the task force. The task force will examine the management letter in detail to refine the long-term enhancement measures for announcement before the end of the year.

Mr Hui also announced that Administrative Officer Staff Grade A1 Alice Lau had been invited to conduct a disciplinary investigation on the human errors identified in the management letter.

The Task Force on Review of Government Procurement Regime was established in August to review the existing government procurement regime and procedures arising from the incident on the Government’s procurement of bottled drinking water under a cross-bureau and cross-departmental approach.

The task force is chaired by Mr Hui, with members including the Permanent Secretary for Financial Services & the Treasury (Treasury), the Director of Government Logistics, and representatives from the Civil Service Bureau, the Commerce & Economic Development Bureau, the Development Bureau and the Department of Justice.