Vietnam News Bridge – Several members of the HCMC Fatherland Front Committee on Monday expressed a common concern on the increase of tap-water prices by as much as 77% that would affect the living conditions of many poor people in the city.
At the meeting to collect opinions on the issue that was held by the Fatherland Front Committee, the committee’s members said the tap-water price hike was understandable for Saigon Water Corporation (Sawaco) to balance its losses from its tap water production, but the city needed to take a suitable route for the increase.
According to a new price list for tap water that was recently approved by the city’s Finance Department, for a family using less than 16 cubic meters per month, the price of one cubic meter will increase from VND2,700 to VND4,800, and for a family using more than 16 cubic meters, the price will increase from VND5,700 to VND8,400.
The price of tap water for manufacturers will also increase from VND4,500 to VND8,500 per cubic meter. businesses and services providers will pay VND14,300 for each cubic meter instead of VND8,000.
Dang Duc Dung, a member of the committee, said when the city still had many poor families, the high increase of tap-water prices would definitely affect poor families, particularly those in suburban areas.
Dung said that with higher prices, tap-water could become a luxury for many poor families and they could end up drilling for underground water instead of buying tap-water.
“The effect on the environment will be unavoidable when many people start drilling for water,” he said.
Le Hieu Dang, former vice chairman of the Committee, said the increase by 77% was too high. He suggested the city government make increases by 10% to help poor people.
According to the city’s People’s Committee, the new prices are suitable with the income capacity of most families when per capita income has increased from VND1.1 million in 2004 to VND2.2 million in 2008.
Tran Dinh Phu, general director of Sawaco, said the corporation needed huge investment capital for several projects to upgrade water pipes and facilities to reduce the present ratio of tap water loss of over 40%.
“To increase the production capacity of tap-water by 3.4 million cubic meters by 2015, Sawaco needs some US$4 billion to build more water plants, upgrade old water pipes and improve the distribution systems of tap-water,” Phu said.
Phu said the corporation was meeting only 76% of the total tap-water demand of the city. One of the main reasons for the huge ratio of tap-water loss is that some 700 of 3,350 kilometers of water pipes managed by Sawaco is deteriorating and needs replacing.
Nguyen Quoc Chien, manager of the Prices Office of the city’s Finance Department, told the meeting that the department would collect opinions from the Fatherland Front Committee to submit to the People’s Committee today, November 11.
VietNamNet/SGT