Hong Kong to spend HK$15 billion on fresh water from mainland China over next three years
The annual rate of increase was 0.3 per cent between 2018 and 2020.
A government spokesman said the new rate took into account changes in the price indices of Guangdong and Hong Kong and the exchange rate for renminbi and the Hong Kong dollar.
Secretary for Development Bernadette Linn Hon-ho on Wednesday signed the new agreement with Wang Lixin, the director general of the Water Resources Department of Guangdong province, in Guangzhou.
“We are very grateful for the nation’s support for Hong Kong,” Lin said. “The continuous supply of Dongjiang water since the 1960s has helped Hong Kong to solve the long-term problem of water shortage.”
“Dongjiang water currently makes up about 70 to 80 per cent of fresh water consumption in Hong Kong, meeting the needs of people’s livelihood and social development.”
The rest of Hong Kong’s supply of fresh water comes from rainfall.
Dongjiang water comes from the Taiyuan Pumping Station in Dongguan city, which is discharged into the Shenzhen Reservoir before it is piped to Hong Kong.
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Hong Kong reached a new water supply deal with mainland Chinese authorities in 2020, which allowed the city to pay only for the actual amount supplied until 2029.
Major features such as water quantity, quality and prices are reviewed and adjusted every three years.
It was agreed in 2020 that the annual supply ceiling of 820 million cubic metres (216 billion gallons) of Dongjiang water would be retained and that water prices would rise by 1.33 per cent annually between 2021 and 2023.
But in 2021 the actual price remained the same as 2020’s amid the pandemic.
Hong Kong is committed to also buying a maximum of 820 million cubic metres of Dongjiang water a year between 2024 and 2026.
The figure is close to the city’s actual consumption of 810 million cubic metres in 2022 and 811 million cubic metres the year before.
Hong Kong to pay only for water supplied under new Guangdong deal
Based on the commitment, the annual ceiling water prices are adjusted to HK$5.13 billion, HK$5.25 billion and HK$5.38 billion respectively.
The new annual increase rate of 2.39 per cent is the highest since the three years between 2018 and 2020 where the rate of 0.3 per cent was adopted.
The rate ranged from 6.36 per cent to 6.65 per cent from 2015 to 2017.
The annual ceiling water prices from 2021 to 2023 were HK$4.88 billion, HK$4.95 billion and HK$5.01 billion respectively.
The Hong Kong authorities said the new agreement also specified that Guangdong will ensure the quality of the water supplied was compliant with Type II waters in the Environmental Quality Standards for Surface Water, which is “the highest national standard for surface water applicable to human consumption”.
The Development Bureau will also organise a series of events designed to teach the public about the history of Dongjiang water in Hong Kong in celebration of the 60th anniversary of the first supply deal.