Financial Secretary John Tsang has announced several measures to cut spending on water and enhancing supply.
Delivering his Budget speech today, Mr Tsang said the Government will start working on the design of a desalination plant in Tseung Kwan O this year. The plant will open in 2020 with an annual output of up to 10% of local fresh water consumption.
To minimise water loss, the Government will establish the Water Intelligent Network by installing sensors in water supply networks to monitor their condition. It will also examine other techniques to find defective water mains and predict water main bursts.
The Government plans to commission a consultancy study on enhancing the leisure and recreational value of the Victoria Harbour waterfront in the long term.
On air pollution, Mr Tsang proposed extending the incentive scheme on reducing charges for ocean-going vessels using low-sulphur fuel while berthing in Hong Kong to the end of March 2018.
An additional $150 million will be allocated to extend the Cleaner Production Partnership Programme for five years to help Hong Kong-owned factories in both Hong Kong and Guangdong reduce emissions and conserve energy.
The Government will also phase out 82,000 Euro III or earlier diesel commercial vehicles by the end of 2019, involving an ex-gratia payment of $11.4 billion, Mr Tsang added.
