In 2004, the Government of the Hong Kong SAR completed important studies on environmental impacts and engineering feasibility to assist in deciding the best way forward for the remaining stages of HATS.

In response to the support HATS Stage 2 received during the public consultation in the second half of 2004, the Government has decided to proceed with the implementation of Stage 2 in phases.

Stage 2A will upgrade the preliminary treatment works around the northern and southwestern shore of Hong Kong Island and construct a deep tunnel system to convey the currently untreated sewage from Hong Island to Stonecutters Island Sewage Treatment Works, where the existing chemical treatment facilities will be expanded and new disinfection facilities added. Detailed planning for this phase is well underway with the aim of completing Stage 2A in 2013-14.

So that there can be early benefit to the harbour water quality, Government plans to advance the provision of disinfection at Stonecutters Island Sewage Treatment Works to 2009.

Stage 2B will add biological treatment to the facilities at Stonecutters Island and its timing will depend upon a review of water quality trends, population increases and sewage flow build up to be undertaken in 2010-11.

Whilst Government will shoulder the cost of constructing Stage 2, the full operating costs will have to be recovered through sewage charges. The public consultation demonstrated that the majority of respondents support this application of the "polluter pays" principle.

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