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HK touts pay-as-we-use water deal

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Environment chief says the proposal, which would see ceiling on supply scrapped, could reduce waste

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Hong Kong has proposed paying only for water it uses - an idea that could conserve water for Guangdong, the environment chief said yesterday.

Under the proposal, instead of buying a maximum of 800 million cubic metres of water annually from the Dongjiang, or East river, it would buy a minimum of 600 million. For amounts in excess of that, it would pay a 10 per cent premium, Sarah Liao Sau-tung told legislators.

Making Hong Kong pay a premium could serve as an incentive to take less water than in recent years. But it is not clear whether consumers would also be charged a graduated tariff to deter waste.

Hong Kong has been trying to renegotiate its water-supply agreement with Guangdong for two years. Dr Liao, the Secretary for Environment, Transport and Works, said nothing on the talks' progress.

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About 80 per cent of the water Hong Kong uses comes from the Dongjiang. The rest is from the city's reservoirs. Last year, it received 743 million cubic metres of Dongjiang water but paid for 800 million cubic metres at a cost of $2.47 billion, with each cubic metre costing $3.085.

In each of the past five years, Hong Kong has taken less water than it has paid for because of abundant rainfall and the continuing relocation of factories across the border. Between 1999 and 2001, the city dumped 327 million cubic metres of water from its reservoirs.

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