"Stuck" in price, risk of not being able to ensure domestic water supply

The price of domestic water consumption in Hanoi has been implemented since 2013, while the policy mechanism has changed and the input factors have increased. The fact that the water price has not been adjusted has greatly affected the development of the water supply system, leading to the risk of not ensuring the supply of domestic water...

Some residential areas lack water due to lack of supply.

Does not guarantee continuous and stable water supply

Hanoi Department of Construction said that currently, the total capacity of water supply from centralized water plants in the city is about 1,530,000m3/day and night, basically meeting the water needs of the people within the scope of the water supply system.

However, during the peak summer heat, water demand increased (increased by 5 - 10%), while the ability to distribute water resources was not synchronized with the demand in the areas, especially Thanh Xuan, Hoang Mai, Nam Tu Liem, Ha Dong, Hoai Duc areas using water from the Da River Surface Water Plant, so there was a local water shortage, especially in the downstream areas with high terrain.

In fact, in May and June 2023, there was a shortage of domestic water in the southwest of the city. According to the Chairman of the People's Committee of Di Trach Commune (Hoai Duc District) Ly Van Quy, in the past, the commune had had its domestic water supply cut many times. This situation was especially severe in May 2023 and gradually decreased in June 2023, but the amount of water pumped in was not enough to supply the people. The reason for the water cut in the Hoai Duc area was that the Da River water source was not enough to supply the Tay Ha Noi Clean Water Joint Stock Company for distribution to the people. Statistics from the Tay Ha Noi Clean Water Joint Stock Company showed that in the recent water cut, about 7,000 customers were affected...

Thus, it can be seen that although the current water supply system of the capital basically meets the people's need for clean water, during the peak hot summer months, the water supply has been affected, not ensuring continuous and stable water supply.

One of the main reasons is the slow progress of resource development projects, including the Red River Surface Water Plant project (phase 1 capacity is 150,000m3/day-night; phase 2 is 300,000m3/day-night), expected to be put into use from the first quarter of 2021, but has not yet been completed. The Da River Surface Water Plant project (phase 2), increasing the capacity to 300,000m3/day-night, has also been requested by the Department of Construction to speed up progress and focus on construction...

According to the Hanoi Department of Finance, the unadjusted water price has greatly affected the progress of investment in new water plants as well as projects to renovate and increase the capacity of operating water plants. Specifically, for water plants in the planning but not yet invested, investors have had difficulty mobilizing capital for investment. For operating surface water plants, due to investment in new technology, depreciation costs and high interest rates, low water prices have made it difficult for investors to pay operating costs, as well as difficult to negotiate loans to expand and increase capacity.

In addition, low water prices also affect investors' ability to repay loans, thereby affecting the progress of investment in planned water pipeline projects. This causes local water shortages in some areas at certain times.

According to the Hanoi Department of Construction, with the increase in population, urbanization speed..., from 2025, if the investment progress of water supply projects is not guaranteed according to plan, the city may not be able to ensure the supply of clean water for daily life.

Water prices have not been adjusted, causing units to not have enough resources to reinvest and improve the quality of clean water.

And other “Nos”

Not only does it not ensure a stable and continuous water supply, the slow adjustment of water prices also fails to attract investors to invest in the city's water supply sector. The Hanoi Department of Construction said that in the past, the city has called for 23 private investors to implement 39 water supply projects, including water source and network projects. Among them, some enterprises did not implement the projects, and most of the remaining projects are behind schedule.

According to Deputy Director of Hanoi Department of Finance Nguyen Xuan Sang, in reality, enterprises that have just implemented projects in this period are under a lot of pressure on capital costs. With the current water price only meeting the minimum essential costs to operate the plant, the investment capital has not been recovered, and there is no profit. If the water price is not adjusted in time, these enterprises will face the risk of bankruptcy, due to lack of financial resources to operate the plant, leading to failure to ensure water supply security for the city.

In addition, according to the Hanoi Department of Construction, the slow adjustment of clean water prices also leads to the consequence of not meeting the conditions to improve the quality of clean water. Specifically, according to Circular No. 41/2018/TT-BYT dated December 14, 2018 of the Ministry of Health and Circular No. 26/2021/TT-BYT dated December 15, 2021 on National technical regulations on clean water quality for domestic use (QCVN 01-1:2018/BYT), replacing the standards QCVN 02:2009/BYT, QCVN 01:2009/BYT of the Ministry of Health. In which, the requirement for clean water quality is much higher than QCVN 02:2009 to ensure people's health.

However, to treat water to meet QCVN 01-1:2018/BYT, it is necessary to invest in new water treatment technology and renovate the old water supply system. Therefore, with the water price not yet adjusted, water supply units do not have enough resources to reinvest and control to improve the quality of clean water.

In addition, according to Chairman of the Vietnam Water Supply and Sewerage Association Nguyen Ngoc Diep, not adjusting clean water prices also discourages the economical use of clean water. In fact, water is a renewable resource. However, the supply of clean water is decreasing while human demand is increasing along with the population growth rate. The protection and effective use of water resources is an important and urgent issue not only in Vietnam, but also globally. Therefore, Hanoi's adjustment of clean water prices in the city is necessary, in accordance with legal regulations, in accordance with practical requirements, encouraging the economical use of clean water and the State's policy in managing clean water production and business activities.

“With the current water price in Hanoi, I think it is still low and has not been implemented in accordance with the regulations on adjusting water prices. Among the provinces and cities, Hanoi is the locality that has taken too long to adjust, 10 years without adjusting water prices and the water price is currently the lowest compared to many provinces and cities across the country, while the per capita income and living standards of urban residents in Hanoi are very high...”, said Mr. Nguyen Ngoc Diep.

Source: https://hanoimoi.vn/vuong-gia-nguy-co-khong-bao-dam-nguon-cung-nuoc-sinh-hoat-633647.html