Harbour Area Treatment Scheme (HATS) Stage I was completed in December 2001 and has since been in full operation. The Stonecutters Island Sewage Treatment Works are now treating over 1.3 million cubic metres of sewage from Kowloon and the northeastern part of Hong Kong Island each day.

The second contract of Stage III of the Shenzhen River Regulation Project commenced in July 2002 as part of the joint efforts of the Government of the Hong Kong SAR and the Shenzhen Municipal Government to alleviate the threat of flooding in northern New Territories and in Shenzhen.

Construction of the Upper River Indus and River Beas Rehabilitation works was completed in December 2001, reducing significantly the hazard of flooding in Kwan Tei North and Kwu Tung South in northern NT.

Commissioning of Pok Wai Village Flood Protection Scheme in April 2002 gives protection to around 120 village houses and 470 villagers in this flood prone area.

The investigation report on the flooding incidents in June 2001 in the NT and Tsuen Wan was completed in September 2001. It concluded that low-lying topography, inadequate capacities of existing river channels, prolonged heavy rainstorms and high tide were the principal causes of flooding.

Completion of upgrading and extension of Shek Wu Hui STW in August 2001.

Obtained ISO 9001 certification for SP, DP, PM, CM, HATS and O&M divisions.