Hong Kong to pay 20pc more for Guangdong water; impact on bills unclear
Deal with Guangdong reflects stronger yuan; impact on household bills is as yet unclear
Hong Kong is set to pay about 20 per cent more for its water imports from across the border as part of a new deal signed with Guangdong, but it is unclear whether it will translate into higher costs for consumers.
Water bills for Hongkongers have not changed since 1995 and are among the cheapest in the world. A review of pricing now in progress will not be completed before the end of the year.
Under the three-year deal with Guangdong - which supplies 80 per cent of the city's water - a ceiling set on water imports will not change but the payment for the water will climb from HK$11.2 billion to HK$13.4 billion between next year and 2017.
That translates into an annual lump sum payment of up to HK$4.7 billion, which represents an increase of about 6.6 per cent in each of the three years, compared to the previous deal.
An official said the deal was "reasonable", citing inflation, rising costs and the stronger yuan.
The cost of the cross-border water supply from the Dongjiang, a tributary of the Pearl River, surged by at least 63 per cent between 1998 and 2012.
The water department registered a deficit of about HK$1 billion last year after subsidising users for 87 per cent of the cost.
