Vientiane water rates rise
Vientiane water rates rise
Vientiane's water supplier, Nam Papa Nakhone Luang, is increasing water rates to generate more money for expansion of the network and the provision of better services.
The increase comes into effect from September and will see a hike of an average of 1,900 kip per cubic metre. However, water rates had risen by only 1,350 kip since 2009, Nam Papa Nakhone Luang General Manager, Mr Khampheuy Vongsakhamphoui, told local media at a press conference yesterday.
The price will rise steadily by about 3-5 percent from 2015 to 2018, with the new fees to apply to three main groups of users, he said.
Families who use water at a rate of 1 to 10 cubic metres a month this year will be charged 1,300 kip per cubic metre per month, after which they will pay more in successive years.
Families who use water at a rate of 11 to 30 cubic metres a month this year will pay 1,800 kip per cubic metre, Mr Khampheuy said.
Those who use 31 to 50 metres a month will be charged 2,300 kip per cubic metre, while families who consume more than 51 cubic metres a month will pay 2,800 kip a cubic metre per month this year.
Secondly, government bodies, embassies and international organisations will pay 2,300 kip a cubic metre per month this year.
Thirdly, businesses such as hotels, restaurants and factories will be charged 2,800 kip a cubic metre per month.
“In the past, Nam Papa Nakhone Luang charged all water users in Vientiane the same rate, but this new system will see consumers billed according to the revenue they earn,” Mr Khampheuy said.
The new rates will not impact on users' living standards as it will not be out of line with their salary, he added.
One of the main reasons for the rate hike is the increase in the cost of raw materials, spare parts and other equipment used in repair of the system. Another factor is that the installation cost has risen, along with the salaries paid to personnel, as well as inflation.
The revenue gained from the increase will enable Nam Papa Nakhone Luang to expand into more local communities.
The water supplier's aim is to service 80-85 percent of people in seven districts of Vientiane by 2015, with a further increase to 90-95 percent by 2020, Mr Khampheuy said.
The extra revenue will also enable Nam Papa Nakhone Luang to replace old pipes, with the aim of cutting water losses by the current 25 percent to 20-22 percent in the future.
Nam Papa Nakhone Luang currently supplies only 74 percent of water consumers in Vientiane, dispensing 180,000 cubic metres, while demand stands at over 300,000 cubic metres.
vientiane times
