XN000022-1972-08-23 — Page 1

P.X.H. 7 (REVISED)

4000001

EONG RONG

GOVERNMENT INFORMATION

DAILY

INFORMATION SERVICES

BULLETIN

Wednesday, August 23, 1972

JAPANESE FIRM WINS $337 MILLION DESALTING CONTRACT

The Government announced today that a Japanese firm, Sasakura

Engineering Company Ltd. of Osaka, had been awarded a contract, worth

approximately $337 million, for the construction of the sea water desalting

plant near Castle Peak in the New Territories.

The plant, which will be the biggest of its kind in the world,

will be capable of producing 40 million Imperial gallons of fresh water a day. It will consist of six units each complete with its steam boiler,

evaporator and associated ancillaries.

The first of these units is expected to be operational by the

middle of 1974 with each of the remaining units coming into operation

successively at three-monthly intervals after that date.

The Government's decision to build a large scale sea water

desalting plant as a means of augmenting the fresh water supply was first

announced by the Director of Water Supplies in May last year.

When it became apparent that the demand for fresh water continued to grow at a rate of between 8 per cent and 81⁄2 per cent a year, a decision

was made in January this year to double the capacity of the plant to

40 million gallons a day.

/At the