The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in r

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 0270) ANNOUNCEMENT

This announcement is made pursuant to the Inside Information Provisions (as defined in the

Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the

''Listing Rules'') ) under Part XIVA of the Securities and Futures Ordinance and Rule 13.09 of the Listing Rules.

The board of directors (the ''Board'') of Guangdong Investment Limited (the
''Company'') has noted from public information available on the Hong Kong
Legislative Council's website regarding the discussions on water supply from Guangdong Province to Hong Kong between the government of the Hong Kong Special Administrative Region (the ''HKSAR Government'') and the government of Guangdong Province (the ''Guangdong Provincial Government'').
By way of background, the supply of water to Hong Kong from Guangdong Province is regulated by an agreement (the ''Hong Kong Water Supply Agreement'') between the HKSAR Government and the Guangdong Provincial Government which sets out the principal terms of such water supply (including water supply volume and water tariff). Pursuant to a concession agreement dated 18 August 2000 entered into between Guangdong Yue Gang Water Supply Company Limited (''WaterCo'', a subsidiary of the Company) and the Guangdong Provincial Government, the Guangdong Provincial Government has, amongst other things, granted to WaterCo the right to supply water to Hong Kong.
The current Hong Kong Water Supply Agreement for 2012 to 2014 was concluded in
December 2011 and it will expire on 31 December 2014.

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According to public information available on the Hong Kong Legislative Council's website, the HKSAR Government, after discussions with the Guangdong Provincial Government, will make a proposal to the Hong Kong Legislative Council in relation to the terms of the Hong Kong Water Supply Agreement for 2015 to 2017 (the
''Proposal''). The Proposal includes the following principal terms: (1) annual water purchase costs for 2015 to 2017 of HK$4,222.79 million, HK$4,491.52 million and HK$4,778.29 million, respectively (2014: HK$3,959.34 million); (2) maintenance of the ultimate annual supply volume of 1,100 million cubic metres; and (3) requirements on water quality, and it is the aim of the HKSAR Government to enter into the Hong Kong Water Supply Agreement for 2015 to 2017 with the Guangdong Provincial Government by the end of 2014.
The implementation of the Proposal is subject to final agreement between the HKSAR Government and the Guangdong Provincial Government and a number of conditions, which include approvals from the relevant authorities. The Company believes that any change in water tariff and/or water supply volume should have an impact on the result of the Group. An assessment of the overall impact on the Group can only be made after all the terms of the Hong Kong Water Supply Agreement for
2015 to 2017, including water tariff, water supply volume and water quality, have been concluded.

Shareholders and investors are recommended to exercise caution in dealing in or exercising their rights in relation to the securities in the Company.

By Order of the Board HUANG Xiaofeng Chairman
Hong Kong, 21 October 2014

As at the date of this announcement, the Board of Directors comprises three Executive Directors, Mr. HUANG Xiaofeng, Mr. WEN Yinheng and Mr. TSANG Hon Nam; six Non-Executive Directors, Mr. HUANG Zhenhai, Mr. WU Jianguo, Ms. XU Wenfang, Mr. ZHANG Hui, Ms. ZHAO Chunxiao and Mr. LI Wai Keung; and five Independent Non-Executive Directors, Dr. CHAN Cho Chak, John, Dr. the Honourable LI Kwok Po, David, Mr. FUNG, Daniel R., Dr. CHENG Mo Chi, Moses and Mr. WU Ting Yuk, Anthony.

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