HÀ NỘI — The Hà Nội People’s Committee has agreed to allocate nearly VNĐ200 billion (US$8.7 million) from the municipal budget to subsidise clean water prices for residents.

On June 30, 2017, the municipal departments of finance and construction sent a letter to the Hà Nội People’s Committee to make a proposal for clean water prices from the Đuống River Surface Water Plant of VNĐ10,246 ($0.44) per cubic metre.

However, different enterprises, including Hà Nội Water Co Ltd (Hawaco) and Hà Nội Water Supply Number 2 JSC, complained saying they would be unable to continue operating at that price.

Đuống River plant's proposed price is even higher than the retail price that the Hà Nội People's Committee is implementing and the price other clean water plants are applying.

At present, Hawaco resells clean water from the plant for VNĐ9,700 ($0.42) per cubic metre, and the move would cost the company a loss of more than VNĐ190 billion ($8.3 million) per year.

Hà Nội Water Supply Number 2 JSC said it would suffer a loss of nearly VNĐ60 billion ($2.6 million) per year. 

In December last year, different units from the finance, construction and clean water sectors sent a letter to the Hà Nội People’s Committee asking for subsidies.

2019 is the first year the Đuống River water plant supply water to residents in Hà Nội with the daily volume of 100,000cu.m. — VNS