A new water supply arrangement between the Hong Kong Special
Administrative Region (HKSAR) 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 meter
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
HKSAR 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
meter 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 meters annually from 609 million cubic metres
in 1995 to 1.1 billion cubic meters in 2008.
Under the new agreement, the ultimate annual supply quantity of
1.1 billion cubic meters 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 percent 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.
(China Daily HK Edition April 14, 2006)