'HK Deserves A Better Dongjiang Water Deal'

Experts said on Tuesday that the government should come up with a better deal over Dongjiang water supply, pointing out that its projected savings would only represent a tiny portion of the entire bill over the next decade or so.

The current agreement between Hong Kong and Guangdong expires this year, and the two sides plan to enter a new pricing arrangement for the next nine years.

After charging a price based on a supply ceiling, there will be a cost deduction if less water is actually used than the ceiling level.

In papers submitted to the legislature, the Development Bureau estimates that this could save HK$324 million in the next nine years.

The projected savings would amount to less than 1 percent of the deal estimated at HK$45 billion.

Meanwhile, Guangdong authorities have agreed to freeze next year's prices at 2020 levels to ease Hong Kong's financial burden amid Covid-19. That would save about HK$64 million for the SAR.

Still, a government advisor on water supplies, Edwin Lau from Green Earth, was not impressed with the price deductions.

"It's not a great deal. It's a very small decrease. Actually, the Hong Kong government should negotiate with the Guangdong authorities to have a better deal," he said.

Lau also said the nine-year agreement is too long and should be shortened to three to five years instead.

A former government advisor, Green Power's Man Chi-sum, also said the price deductions are minuscule.

"If you compare the deduction to consumer prices nowadays, it's a rather small amount, it's almost like there's no deduction at all," he said.

Man called on the government and lawmakers to consider speeding up the construction of desalination plants to provide more water resources.