“To reduce current water losses from 42 to 40 percent in the next two years, then from 30 to 32 percent in 2010-2015 and finally to 25 percent in 2025, water rates must rise so we can fund projects aimed at reducing water losses,” argued Sawaco General Director Tran Dinh Phu.

 

Speaking at a workshop in HCM City on September 8, Phu explained that the city has around 3,400km of water pipes which have been used for more than 30 years.

 

“Up to 90 percent of water losses are caused by these pipes,” Phu asserted. He says a solution is urgently needed. Half a year has passed since Sawaco proposed that water charges be raised by 75 percent. The HCM City authorities have not approved the proposal, concerned about its impact on local residents. 

 

Many members of the HCM City People’s Council, in contrast, support the resolution and have asked Sawaco to submit a detailed plan by the end of 2009. Company representatives will also have to answer many questions before its proposal is approved.

 

Less than 37 percent of the people in HCM City’s suburbs, made up of many poor locals, have access to tap water. Local officials doubt those people can afford the increase. “The water loss ratio was 34 percent ten years ago; now it is 42 percent. The more effort that the city has exerted to curb water losses, the more water losses have increased,” noted Deputy Dang Van Khoa.

 

The World Bank (WB) and the Asian Development Bank (ADB) have granted over USD 100 million for projects to curb water losses in HCM City. Sawaco needs around 5.7 trillion dong (USD 316 million) to build its new facilities between now and 2025.