he Municipal Sector Division recorded satisfactory business results in 2007/08, despite rising labour and materials costs, and a reduction in minor projects as some clients cut back on E&M expenditures.

A positive development was the extension of Service Level Agreements (SLAs) with the Leisure and Cultural Services Department (LCSD) and the Food and Environmental Hygiene Department (FEHD). Both of these SLAs, previously of four year term, will now run for six years from 2008/09. The Division also won back, via competitive tender, all the FEHD's outsourced E&M maintenance contracts for the districts of Yuen Long, Tai Po and Tuen Mun.

Another significant tender win was the LCSD contract to operate and maintain stage lighting and sound facilities at Ko Shan Theatre. The Division has provided technical services for Ko Shan Theatre for many years but this is its first comprehensive stage management contract. 

A new development took place within the Division's crematorium business, whereby the scope of service at the Kwai Chung and Fu Shan Crematoriums, after their recent renovation, was extended to add coffin reception and bone ash handling services to the operation and maintenance of the cremators. Discussion with FEHD is in progress about similar one-stop arrangements for the recently renovated Diamond Hill Crematorium, and for all other crematoriums upon their renovation in future.

We installed an Olympic Torch monument illuminated by energy efficient LED spotlights outside the Hong Kong Cultural Centre.

The Division also participated in special events such as the Mega Tai Chi Show organised by LCSD to commemorate the 10th anniversary of Hong Kong's handover to China. The Division designed and operated the security lighting and power and sound systems for the event held at the former Kai Tak Airport. With thousands of participants, the show added to the Division's experience in operating sound systems at large-scale events.

The Division has been pro-active in coming up with innovative solutions for clients to save energy. To celebrate the Beijing Olympics 2008, a "Green" Olympic Torch monument illuminated by energy efficient LED spotlights was installed in the Hong Kong Cultural Centre piazza. Another innovative energy project was the installation of grid-connected photovoltaic panels, in the shape of the LCSD logo, on a sloped site at the Museum of Coastal Defence. The panels are being used to generate clean energy for the venue. Also using renewable energy, the Division improved the working environment for lifeguards at public swimming pools by installing solar fans in lookout post towers. Operating on batteries charged with electricity generated from photovoltaic panels fixed on top of the tower, the green-power generated solar fan provides a safe and much-welcomed ventilation solution to the lifeguards. The majority of public swimming pools have now been fitted with these solar fans.

Photovoltaic panels in the shape of LCSD logo at the Museum of Coastal Defence. We designed and installed the facility.

The Division has also been providing professional support to Hongkong Post in its project to replace ageing Mechanised Letter Sorting Systems, due for completion in 2009.

During the year, the Division was recognised with a Bronze Award in the Considerate Contractor Site Award Scheme organised by the Development Bureau.

The Division is cautiously optimistic about 2008/09, anticipating stable business despite inflationary pressures. It will also be important to continue to keep up staff motivation and morale in order to maintain a high level of customer service.