CO129-509-15 Water supply- development scheme 30-1-1928 - 17-1-1929 — Page 232

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water for a public supply in this valley allowance would in

the first place have to be made for the supply required by

the Paper Mills.

6.

To develop fully the Aberdeen Valley it will,

therefore, be necessary to buy out the water rights of the

Tai Shing Paper Mills Company. This will in effect involve

complete resumption of the whole concern, as the mills cannot,

of course, be operated without their water supply. The

estimated cost of complete resumption of the Company's

rights, lands and buildings is $450,000, a figure which is

considered a fair and equitable one under all the

circumstances.

7.

The proposed scheme of development is set forth in detail in the attached Sessional Paper. It involves

the construction of a new Reservoir above the existing one, reconstruction of the existing dam and provision of the necessary pipe lines, pumping station, filters, etc.

8.

The scheme is estimated to cost $2,627,000,

inclusive of the above $450,000 for resumption, and to yield

a supply of 2.12 million gallons per day, giving a capital cost of $1,240 per 1,000 gallons of filtered water per day, inclusive of resumptions, and $1,026 per 1,000 gallons of filtered water per day, exclusive of the cost of resumption. As the existing Waterworks in the Colony, a large portion

of which were constructed before the war and involved little

resumption, cost $1,140 per 1,000 gallons per day, the proposed scheme is considered very economical; while, as the water would be drawn principally fran the gravitation

reservoir, recurrent charges would be low.

9.

I propose that these Works should be charged

to Loan Account, and await your approval before submitting

the