VietNamNet Bridge – HCM City collects environmental protection fees equal to 10 percent of the tap water price, and is now planning a fee for water drainage, to be equal to 25 percent of the tap water price.

The HCM City Research & Development Institute is calculating the expenses on waste water treatment in order to calculate how much residents would have to pay.

No final decision has been made, but sources said water users may have to pay VND1,400 per cubic meter of water consumed.

The city authorities decided to charge drainage water fees as part of an effort to call on economic sectors to invest in water drainage systems and waste water treatment systems, which would help ease the burden on the city’s budget.

HCM City plans to implement 198 projects on waste water treatment plants, water drainage and high-tide control, worth a total of VND133.5 trillion.

The VND1,400 per cubic meter water drainage fee would be equal to 25 percent of the currently applied running water price, applied to households which have monthly consumed volume not exceeding the limit.

The suggested fee would be equal to the fee applied in Da Nang City, but lower than the fee used in Soc Trang City.

The Prime Minister in early August approved a plan on mobilizing different resources for investment in water supply and drainage systems and domestic solid waste treatment systems.

Under the plan, the running water prices would be adjusted step by step before the State stops subsidizing water prices in 2020.

The government’s Decree No 80, which is to take effect on January 1, 2015, laid down two basic principles. First, the subjects causing pollution must pay money for pollution treatment. Second, the receipts from water supply and drainage fee collection must be raised in order to cover expenses.

Thus, in the future, some essential urban services will be covered by service users, not by the State budget.

The fees would be set at reasonable levels to be sure that the receipts are big enough to cover the expenses on the water drainage system building, operation, management and maintenance.

The same principle would be applied to solid waste treatment and sanitation fees. The investors who develop important solid waste treatment projects would be able to borrow money from the state’s credit programs.

At present, running water is provided to HCM City residents by the Sai Gon Water Supply Company (Sawaco). The residents have to pay an environmental protection fee equal to 10 percent of the running tap water price.

However, revenue from the fee collection is just big enough to cover 50 percent of water supply and waste water treatment expenses. The remaining expenses have been paid by the city’s budget.

TBKTSG