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Tap water prices to increase 10%

Update: January, 04/2012 - 09:57

HCM CITY — The prices of tap water in HCM City have been raised by 10 per cent with the city administration saying it plans to raise people's awareness of efficient water use and upgrade water supply facilities.

The new prices, ranging from VND4,800 (US$0.2) to VND15,200 ($0.7) per cubic metre for different payers, took effect on Sunday, January 1, according to the Sai Gon Water Corporation (SAWACO).

The price adjustment is part of the city's 2010-13 water pricing plan formulated under a decision made by the municipal administration in 2009. The first increase in prices under the plan was applied in March 2010.

The new prices are at least VND400 higher than last year, when they ranged from VND4,400 to VND13,500.

The price increase is necessary, according to SAWACO, because the water suppliers need to generate capital to invest in upgrading their facilities and minimise the loss of water. The increase also aims to encourage people to use water more efficiently.

The minimum increase in prices applies to households and the maximum to businesses and service providers.

Next year, tap water prices will rise further by VND500-1,700. By then households will be paying at least VND5,300 per cu.m and businesses and service providers will pay VND16,900 per cu.m. —VNS

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