The territory will have to pay about 2 billion Hong Kong dollars (256 million US dollars) more for the water it imports from China as a result of inflation and an appreciating Chinese currency, a media report said Thursday.
Under a new three-year deal agreed between negotiators from Hong Kong and Guangdong province, Hong Kong must pay a lump sum of 9.4 billion Hong Kong dollars to import 1.1 billion cubic metres of water a year, the South China Morning Post said. This is an increase of 1.96 billion Hong Kong dollars compared with the current agreement.
A government spokesman said the increase was due to stronger yuan, which had risen 14 per cent against the Hong Kong dollar in the past three years, and 3 per cent annual inflation in the region.
The water is supplied by pipeline from the Dongjiang river in Guangdong province and accounted for about 80 per cent of Hong Kong's supplies last year. But fluctuating rainfall and a development boom in the Pearl River delta had called into question the long-term use of the river as a water source.
Water is relatively cheap in Hong Kong, with one cubic metre costing up to 9 Hong Kong dollars. Critics claim the low price means people have little incentive to save or conserve water.
Damien Ku, a former senior official at the water supplies department, said without financial deterrents, no one would care about saving water.
Shares fell 2.1 per cent Friday on the Seoul stock exchange on general recession fears. South Korea's won dropped against the dollar.
When the Spirit rover landed on Mars five years ago, no one expected it or its sister rover Opportunity to make it to their first birthdays, let alone their fifth.
Amelie Mauresmo fell victim to a leg injury after less than half an hour on court Friday to hand over a 4-0 victory which put French compatriot Marion Bartoli into the final of the Brisbane International.
Mumbai-based movie Slumdog Millionaire won five prizes Thursday night at the Critics Choice Awards, cementing its position as a surprise favourite just as the Oscar season moves into high gear.
After the Taipei Zoo received two giant pandas from China, another Taiwan zoo said Friday it is seeking to receive a pair of pandas from China.