Dongjiang water-supply agreement set to be renewed

The agreement to import Dongjiang water will be renewed at the end of the month, with the "package deal deductible sum" approach remaining in place, said Secretary for Development Bernadette Linn Hon-ho.

Linn said the current supply agreement which was signed in 2020, will expire at the end of this year, and the Development Bureau has started negotiation with the Guangdong government on the new three-year agreement at the beginning of this year.

She said the "package deal deductible sum" approach - which was first adopted in 2020 to allow water prices to be deducted according to the actual amount of Dongjiang water supplied - will remain in the new agreement.

"For example, if the Hong Kong rainwater collection is high and less water from Dongjiang is needed in a year, the approach can avoid wasting superfluous Dongjiang water resources and save costs to transport the water," Linn said.

The annual ceiling water prices for 2021 to 2023 are HK$4,885 million, HK$4,950 million and HK$5,016 million respectively, and under the approach, an annual discount rate of HK$0.3, HK$0.304 and HK$0.308 per cubic meter has been offered for untaken water amount in 2021,2022 and 2023 respectively.

She added that the new supply agreement will also continue retaining an annual ceiling of 820 million cubic meters and maintain an ultimate quantity of 1,100 million cubic meters to "better guarantee sufficient water supply to Hong Kong."

The Advisory Committee on Water Supplies also finished the inspection of the Dongjiang water quality and supply system in a two-day visit to Guangdong last month, and the chairman of the advisory committee Joseph Kwan Kai-cho said they were satisfied with the water quality.

An exhibition showcasing the development and history of Dongjiang water supply will be held at various locations, including Lok Fu Place, Central Market and Water Resources Public Education Centre in Tin Shui Wai from this month to March next year.

Linn hoped the exhibition would enhance public understanding of the story behind the Dongjiang water supply to Hong Kong, the significance of supply agreement and the work of the Guangdong government to promote the water supply project.

She said the Dongjiang water supply has "laid an important foundation for Hong Kong's long-term development" as it accounts for more than 70 percent of the city's yearly fresh water supply.

Dongjiang is one of the three tributaries of the Pearl River, flowing from northeast to southwest in Guangdong province. And as of 2020, the SAR has signed a total of 12 Dongjiang water supply agreements with the Guangdong government since the first signing in 1960.

ayra.wang@singtaonewscorp.com