The Government Logistics Department has partially terminated a contract for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands starting from today.

The department said it was not satisfied that the contractor, Xin Ding Xin Trade Co. (XDX), would still be capable of performing the contract, after receiving information on its business operation recently.

Thus, the department decided to partially terminate the contract starting from today in accordance with the contract terms. It will follow up seriously and take follow-up action including whether to terminate the contract.

The department has also referred the case to Police for investigation.

Following the expiry of the original contracts, the department conducted an open tender in March to select suitable suppliers of bottled drinking water for government departments.

In June, the department awarded the contract for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands to XDX.

According to the contract, XDX was to supply bottled drinking water, branded "XinLe" to government offices on Hong Kong Island and parts of the outlying islands starting from late June for a period of 36 months.

To ensure a supply of drinking water, the department has arranged for AS Watson Group (HK) to temporarily supply bottled drinking water branded "COOL" and manufactured by the company, to government offices on Hong Kong Island and parts of the outlying islands starting from next week.

The department said it has been monitoring the contractual performance of bottled drinking water suppliers for government offices, with a view to ensuring a stable supply of bottled drinking water in compliance with stipulated technical specifications according to contract terms and ensuring the safety of drinking water.

Suppliers are required to submit test reports issued by independent accredited laboratories every two months to prove that the drinking water provided by them complies with the requirements under the technical specifications.

The department also extracts samples of drinking water for testing from time to time throughout the contract period.

In this regard, the department said it had earlier conducted a test of bottled drinking water samples in government offices, which confirmed that the bottled drinking water from all suppliers complied with the safety standards.