Lookatvietnam – The Ministry of Finance may soon double or triple water rates. Gia dinh va Xa hoi (Family and Society) newspaper asked Water Supply and Drainage Association president Nguyen Ton about the issue.

The fee for a cubic metre of water is VND2,000-3,000 ($11-17 cents). This price is just enough for operation of the system; it does not provide for reinvestment.

We must install new pipes to overcome this failure. Three years ago, we estimated that a kilometre of new pipe of any type would cost US$35,500. Water utilities have raised bank loans for the work since 2001. Their debt now totals $1billion.

The fee for a cubic metre of water is VND2,000-3,000 ($11-17 cents). This price is just enough for operation of the system; it does not provide for reinvestment. If we don’t increase the fee, the industry will die. So we have asked for the change from this year.

But won’t the increase foil the Government’s intention to stimulate consumption?

We estimate that the cost of water accounts for 1.1 per cent of people’s income; in other countries it accounts for about 3 per cent. So it can’t be argued the fee is not affordable. The increase will not have much influence on consumption.

On a long term, the higher fee will help the industry re-invest and install new pipes to improve water quality.

If the State does not increase the fees now, the cost of installation and re-furbishing of a new water system in the next 50-60 years will be much higher.

If the price is increased, are you confident that you can quickly improve the quality of water?

It’s difficult to set a date for quality improvement. We need a plan for it. Firstly, we must have a sound and logical price so that we can accumulate sufficient money for investment.

But the water utilities must sign the contracts that ensure service and quality to their customers.

VietNamNet/Viet Nam News