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The Secretary for Economic Services, Mr Stephen Ip, today (March 30) signed the Supplemental Agreement to extend the Information and Consultation Agreement (ICA) with The Hong Kong and China Gas Company Limited (HKCG).

The ICA was entered on April 3, 1997 and expires on April 3, 2000. Its main purpose is to increase the transparency of HKCG's tariff setting mechanism and to provide the public with the company's financial and operational information.

The purpose of the Supplemental Agreement is to extend the ICA for another three years and to incorporate an amendment regarding disclosure of corporate information.

A spokesman for the Economic Services Bureau said, "The ICA has served its purpose. Over the past three years, HKCG has followed the ICA in consulting the Government and briefing the Energy Advisory Committee and Legislative Council Panel on Economic Services on the company's revision of tariff and fixed monthly charges."

"HKCG has also been publishing each year a booklet containing financial and operational information of the company. The arrangements have increased the transparency of HKCG's core gas business and their continuation would benefit consumers."

"Under the extended ICA, HKCG will increase disclosure of its environmental activities including its environmental policy and objectives and performance. This is a step forward as it reflects the company's commitment to improving the environment."

The ICA as extended will expire on 3 April, 2003.

End/Thursday, March 30, 2000

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