A new water supply arrangement between the SAR and Guangdong would help save
about HK$105 million from buying Dongjiang water in the coming years.
However, the announcement made yesterday might not lead to reduction of water
service charges.
Under the new arrangement, the water price for each cubic metre of Dongjiang
water would remain at HK$3.085 of 2004 level; and the annual expenditure for the
purchase of water from 2006 to 2008 would be HK$2.49 billion.
This amounts to a significant saving worth HK$105 million in view of the
rising water prices on the mainland and projected inflation in the coming
years.
Hong Kong can also achieve greater flexibility in the daily supply rate to
tide over the seasonal fluctuations in the local yield. Hong Kong authorities
will inform Guangdong every month the SAR demand for Dongjiang water on the
basis of the requirement.
This would facilitate a better control of storage level in Hong Kong, which
minimizes the overflow more effectively and saves pumping cost.
Last year from January to November, about 101 million cubic metre of water
overflowed the cost of which was estimated at HK$304 million.
Hong Kong signed a water supply agreement with Guangdong in 1989, stipulating
the supply of Dongjiang water would be increased by 30 million cubic metres
annually from 609 million cubic metres in 1995 to 1.1 billion cubic metres in
2008.
Under the new agreement, the ultimate annual supply quantity of 1.1 billion
cubic metres would be retained, but the target date for achieving the objective
would be postponed and subject to further review.
It has been estimated that the date for achieving such objective will be
deferred to 2044 keeping in view an average annual growth rate of 0.8 per cent
on water demand.
The new agreement will also guarantee enough and reliable water supply to
Hong Kong even during extreme drought conditions with a return period of one in
100 years.
Guangdong will continue protecting the water environment in the vicinity of
Dongjiang and strive to upgrade the Dongjiang water quality in compliance with
the latest national standard.
Hong Kong will benefit from reduced expenses in water treatment because of
the enhanced quality of Dongjiang water.
However, the new agreement had caused some concern. Water demand for mainland
cities, including Shenzhen and Dongguan, has been increasing, and preserving
high flexibility in the water supply to Hong Kong would be at the expense of
such supply to other cities.
Guangdong authorities had also reported that the province was under
tremendous pressure to increase water prices in order to regulate the keen
competition for fresh water in the region. Offering price reductions to Hong
Kong will be contrary to the rising trend.
The Environment, Transport and Works Bureau realized that the risk associated
with heavy reliance on Dongjiang water against the rising demand in Guangdong
and the depleting resources of clean water must be handled carefully.
However, Water Services Department Assistant Director Bobby Ng Mang-tung said
water services charge in Hong Kong might not be reduced even though a new
agreement was signed. "The charge has been frozen for nine years, and we are
facing inflation now," he said.
Democratic Alliance for the Betterment and Progress of Hong Kong legislator
Lau Kong-wah said he hoped water services charges would be reduced, and
officials could release water supply figure each month.
(HK Edition 04/14/2006 page2)
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