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Hong Kong to Pay Up to 19% More for Water From Guangdong

Hong Kong agreed to pay as much as 19 percent more for water from the southern Chinese province of Guangdong under a three-year supply deal.

The city will pay Guangdong HK$3.54 billion ($455 million) for supplies from the Dong River next year, HK$3.74 billion in 2013 and $3.96 billion in 2014, the Hong Kong government said in a statement yesterday. That compares with HK$3.34 billion paid this year, Guangdong Investment Ltd., a provincial water utility, said in a statement yesterday.

The increase in payments takes into account inflation and the yuan’s appreciation against the Hong Kong dollar, according to the city government. The annual water-supply target remains at 1.1 billion cubic meters, Guangdong Investment said.

“There is currently no plan to increase water tariffs,” Gabriel Pang, spokesman at Hong Kong’s Water Supplies Department, said by telephone today.

The city’s water bill per 200 cubic meters was less than half that of the U.S. and Japan in 2009, data from the International Water Association show.

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