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HK$14.4 billion a year for water: can Hong Kong strike a better deal on supply from mainland China?

Guangdong has agreed to review the price formula after 2020 but critics are sceptical of city’s bargaining power in talks

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A dam in Heyuan city, Guangdong, in the upper middle stream of the Dongjiang. The bulk of Hong Kong’s water supply comes from this river. Photo: Dickson Lee

Hong Kong may get a more favourable water import deal with mainland China after 2020, following an agreement between authorities from both sides to review the current price formula.

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The details on water supply from Guangdong are contained in a document to be tabled for discussion at the Legislative Council’s panel for development next Tuesday.

One option put forth by Hong Kong officials was to explore the payment of a fixed sum for a guaranteed amount of water from across the border, with a flexible rate for additional imports based on volume.

Pipes in Sheung Shui are part of the water supply network from Guangdong to Hong Kong. Photo: Felix Wong
Pipes in Sheung Shui are part of the water supply network from Guangdong to Hong Kong. Photo: Felix Wong

At present, Hong Kong is under a HK$13.5 billion deal to buy water from Guangdong until the end of the year. According to the Development Bureau paper, taxpayers will then have to fork out more for a HK$14.4 billion deal – an increase of 6.7 per cent – for water imports from next year until 2020.

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Hong Kong lawmaker Claudia Mo Man-ching, from the newly formed pan-democratic group Council Front, had expressed disappointment with the pricier water deal after this year.

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