he Project Division exceeded its 2007/08 financial target in respect of return on revenue, largely as a result of a better-than-expected market situation, increased number of local infrastructure and improvement projects as well as the Division's own initiatives to strive for new business. The positive trend is likely to continue into 2008/09 and years beyond.

We continue to play a monitoring and coordination role for various systems at the Hong Kong-Shenzhen Western Corridor Boundary Crossing Facilities.

Key achievements included the timely commissioning of various E&M, electronics, communications and building services installations for the Boundary Crossing Facilities at the Shenzhen Western Corridor (SWC) which opened on 1 July 2007. Now the SWC is fully operational, the Division continues in a monitoring and coordination role to ensure that outstanding works and any necessary defect rectifications are completed to the client's satisfaction during the warranty period.

A major new business partnership established with the Highways Department during the year relates to the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) project which is one of the ten major infrastructure development programmes committed by the Chief Executive in his 2007/08 Policy Address. The XRL project will commence in 2008 for completion in 2014/15. The Division will be engaged as an independent consultant to the Highways Department for providing preliminary design review service on permanent way, signalling and control systems, traction power, tunnel ventilation, electronics, building services and E&M systems for the XRL project. A special railway project team will be set up within the Division. This project team will endeavour to solicit other new railway business opportunities such as the Southern Island Line, Shatin-Central Link and the Hong Kong – Shenzhen Airport Link to be implemented in Hong Kong in the years ahead.

A key challenge in 2007/08 was rising staff cost, and the need for prompt staff recruitment as a result of rapid business growth. Yet, the Division was able to achieve its business targets as a result of effective expenditure control and productivity improvement.

On new technology, the Division was entrusted by the Environmental Protection Department to design and construct a pilot Animal Waste Composting Plant at Ngau Tam Mei for the 2008 Olympic and Paralympic Equestrian Events in Hong Kong. The composting technology is able to turn animal waste into fertiliser which could be used in landscaping and planting applications, thereby reducing the need for landfill space in Hong Kong.

Another recent project was the design and construction of fire laboratories located at the Fire Services Training School in Pat Heung for the Fire Services Department.

The Division has continued to partner with private sector architectural firms as their building services consultant for government projects. The business in this area is challenging but promising.

Ms Fanny Ting, E&M engineer of the Division, won the Young Engineer of the Year Award 2008 Certificate of Merit from the Hong Kong Institution of Engineers for her outstanding contribution to the profession and the community. She is the first female E&M engineer in Hong Kong to receive this honour.

To better prepare for new business development and enhance its competitive edge in 2008/09 and the years ahead, the Division will focus on specialist training and development in railway engineering, solid waste management and other new technologies. Looking ahead, the Division's business is likely to be stable and promising.