1,600 households at risk of water cut off due to electricity debt owed by the factory

Gia Lai Factory is operating at a loss, unable to pay electricity bills to maintain operations, 1,600 households in Chu Se district are at risk of not having clean water to use.

On November 9, Mr. Le Vinh Thinh, General Director of Chu Se Water Supply Joint Stock Company, said that the company currently owes 83 million VND in electricity bills for September and October and is unable to pay. The electricity company has announced that if the payment is not made before tomorrow, the factory will have its electricity cut off for production.

Before the factory had an accident, people in Chu Se district carried cans of water from other places to use. Photo: Quang Tan

This is the second time Gia Lai Electricity Company has announced debt collection from the water plant. Previously, in September, the unit planned to cut off the electricity, but then extended the payment when receiving comments from the Provincial People's Committee. In addition to the electricity bill, the plant also owes more than 154 million VND in taxes, and the tax authority has frozen the account.

The General Director of Chu Se Water Supply Joint Stock Company said that the company is facing difficulties due to production and business not going as planned. Before 2018, the investor spent about 200 billion VND to build a water plant, expected to serve about 8,000 households in the district. However, after the plant and the pipeline and meter system were completed, only more than 1,600 households agreed to buy water.

Chu Se Water Plant. Photo: Ngoc Oanh

"People say they don't have access to tap water or well water. This is the main reason why the company is losing money," said Mr. Thinh, adding that since its inception, the company has been facing difficulties, losing from 500 million VND to 900 million VND per month, and had to sell assets to cover the loss. The company has long-standing employee salary arrears and insurance arrears of about 600 million VND.

"The company has run out of loans and has sold all its assets, so we need the province and district to join hands to help the company," said Mr. Thinh.

The water supply interruption will have a major impact on the people. In April, the plant suffered a prolonged water outage, forcing more than 1,000 households in the district to carry buckets of water from other places. The Gia Lai Provincial People's Committee has requested the electricity company and the water plant to take immediate measures to avoid affecting the people.

Ngoc Oanh

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