Hanoi authorities have approved a plan to increase clean water prices by an average of 20 percent from October 1 to fund new projects to meet shortages.
Many residents in Hanoi suffer clean water shortage
Water prices will rise to VND5,973 a cubic metre for first 10 cubic metres, and VND15,929 a cubic metre for consumption of more than 30 cubic metres. The prices are before value added tax and environmental protection fees.
“Water prices will be increased by an average 20 percent,” a Hanoi Clean Water Company official said.
Hanoi Clean Water Company estimates that in 2015 underground water resources will decline between one and three percent, while summer demand this year has risen by between seven percent and 10 percent on the previous year. Water supply is 40,000-60,000 cubic metres below demand.
Nguyen Anh Viet, the director of Vietnam Clean Water Investment and Construction Corporation (Viwaco), which supplies more than 100,000 consumers, said the planned price rise is expected to generate more funding to invest in new infrastructure to serve more people.
“After the water price increase, Hanoi’s clean water prices are still lower than some other cities and provinces,” Viet said.
Nguyen Huu Thang, the director of Clean Water 2 Company, said, “Clean water is priced at the same rate for both residents in the inner city and in the outskirts despite their income gap. The planned price hike will seriously affect those who live in outer suburbs.”
Nguyen Thi Thuy, the head of Hanoi municipal People’s Council’s Office of Social and Cultural Affairs, said the rate of residents in rural areas getting access to clean water is low, so rural areas should be provided with clean water subsidies.
“The clean water price hike plan should be carefully considered, as in 2014 only 36.58 percent of residents in rural areas had access to clean water and the rate is expected to increase by five percentage points by the end of this year,” Thuy said.
Hanoi municipal Party Secretary Pham Quang Nghi said the clean water price hike will not benefit state budget revenue, but will directly fund new water projects.
