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Sewage scheme saving of $500m

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OFFICIALS have found a way to save $500 million on phase one of the sewage scheme to clean up Hongkong's heavily polluted waters, freeing more money for other parts of the massive project.

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The entire scheme needs $17.8 billion and the Governor, Mr Chris Patten, has promised to allocate $8.3 billion, including the $4.5 billion for phase one and $3.8 billion for sewer improvements in Central, Wan Chai, Kowloon and the New Territories.

The rest of the money, which will have to come from the post-1997 administration, is needed to build a 35-kilometre pipe to dispose of partially treated sewage in the South China Sea and for other sewer work.

Environmental Pollution Advisory Committee members were told yesterday that savings of at least $500 million had been found on phase one by linking more areas into the system.

It was unclear how the saved money would be used or whether it was included in Financial Secretary Mr Hamish Macleod's budget last month.

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About $3.4 billion of the $8.3 billion is to come from charges to householders and industry, which are due to be proposed shortly.

The Government will contribute the remaining $4.9 billion, which was boosted by $1.9 billion in the budget speech from earlier estimates.

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