HCM City Raises Prices of Clean Water by 48%

Ho Chi Minh City has raised prices of clean water by 48% from today [March 1] and will hike 10% a year from 2011 to 2013, state media reported March 1. Under a decision approved by the city’s authorities, households that use up to four cubic meters a month will pay VND4,000 for a cubic meter from the current VND2,700; VND4,400 in 2011, VND4,800 in 2012 and VND5,300 in 2013. For those using 4-6 cubic meters a month, the price will be VND7,500 in 2010, VND8,300 in 2011, VND9,200 in 2012 and VND10,200 in 2013. Those households using over six cubic meters will pay VND10,000 per one cubic meter in 2010, VND10,500 in 2011, VND11,000 in 2012 and VND11,400 in 2013. Production and manufacturing units will pay VND6,700 per cubic meter in 2010 while service providers and state agencies will pay VND12,000 and VND7,100, respectively.  General Director Saigon Water Corporation (Sawaco) - the key supplier of tap-water in HCM City Tran Dinh Phu said that the hiked prices are aimed at meeting the rising clean water demand of local residents. Sawaco currently supplies more than 1.3 million cubic meters of tap water a day for the city, meeting 85% of total demand.  Some 700 of 3,800 kilometers of water pipes managed by Sawaco are deteriorated and need replacing, said the water corporation.  Sawaco is estimated to need $4 billion to upgrade its pipeline systems by 2025.