Savannakhet struggling to maintain water supplies
Savannakhet struggling to maintain water supplies
Savannakhet province is struggling to supply enough water to cope with the growing demands of urbanisation and industrialisation, according to the provincial water enterprise.
The enterprise director Mr Phoummady Hongchaleun told Vientiane Times on Thursday that the enterprise currently has the capacity to supply only 22,000 cubic metres of water per day, but the demand for water in the provincial capital of Savannakhet fluctuates between 30,000 and 40,000 cubic metres per day.
“We are encountering a water crisis in some areas of the provincial capital,” he said, adding that the situation could get worse if the issue is not addressed.
“Our main challenge is access to funding because commercial banks are reluctant to give us loans to expand our business,” Mr Phoummady explained.
The enterprise is arranging water trucks to supply water to villagers in crisis areas as a short-term solution to the problem.
Fortunately, Savan-Seno Special Economic Zone has yet to be affected by the water shortage as the enterprise has been able to maintain a supply of 1,000 cubic metres per day to the area.
Due to the funding difficulties, the enterprise has allowed a Malaysian company to hold a share in the enterprise. It will invest money to expand the capacity of the water plant and keep pace with rising demand.
Last year, the Malaysian company and the enterprise raised the capacity of the water plant from 15,000 to 22,000 cubic metres of water per day in their first phase of the expansion project.
They have now proceeded to the second phase, which involves expanding the water pipes to various areas including educational institutions and along the main roads.
“I think that we will begin the third phase next year,” Mr Phoummady said, “increasing the capacity of the water plant from 22,000 cubic metres of water per day to between 30,000 and 40,000 cubic metres per day.”
“If we complete the third phase, our water problem can be addressed. But it doesn't mean that we will do nothing afterwards as we also need to think about longer term demand as urbanisation and industrialisation continue.”
Despite the water shortages, Mr Phoummady admits that his water supply business is quite lucrative as profits exceeded four billion kip last year.
Savannakhet province is located along the East-West Economic corridor on Road No.9, and entrepreneurs investing in the province can easily export their products to international markets.
The construction of the US$5 billion high-speed railway to link Savannakhet to the Lao-Vietnamese border (Savan-Laobao rail) is set to commence soon. The completion of this project will make the logistics of transporting goods between Laos and neighbouring countries much easier.
Japanese multinational corporations such as Nikon and Toyota have decided to establish factories in Savan-Seno Special Economic Zone as Laos integrates with the region and the world.
Many firms are looking at the business potential in Laos, which enjoys political stability and labour costs are low, while the country enjoys trade privileges in more than 40 nations around the world.
vientiane times
