The Hanoi government has proposed many solutions to ensure water supply for people over the years, Thanh Nien newspaper quoted Chairman of the municipal People's Committee Nguyen Duc Chung as saying.

Chairman of the municipal People's Committee Nguyen Duc Chung

Prime Minister Nguyen Xuan Phuc has agreed to Hanoi supplying water in a continuous circular system so that if there is a water incident, out-of-order waterworks could immediately be replaced by another to prevent interruption in water supply, thus avoiding water shortage like the recent water crisis caused by water contamination at a waterworks in October.

Moreover, Hanoi has called for private investors into water supply. Up to now, there have been 23 investors with 28 projects in water-related projects.

Some significant projects include the Bac Thang Long - Van Tri plant with capacity of 150,000 cubic meters (c.b.m) per day, the water plant in Ba Vi district has had its capacity raised from 15,000 to 60,000 c.b.m/day, the Red river water plant in Dan Phuong district with a capacity of 300,000 c.b.m/day, Duong river surface water plant provides 300,000 /day and is slated to double the capacity in the next phase.

The Hanoi mayor stressed that the municipal government will speed up clean water supply for its residents because this is one of the main solutions to improve their living standard.

A misleading statement about pricing of water from controversial Duong river waterworks

"A very misleading statement caused misunderstanding among the public that interest payment is included the water rate,” Hanoi mayor Nguyen Duc Chung said, adding that the water pricing is currently calculated based on the cost of production, transportation, management, interest and water loss.

Chung also affirmed that water rate in Hanoi has remained unchanged since 2013. The municipal government had signed an agreement with Duong River Surface Water Plant about a water rate of VND10,246 (US$0.441) per c.b.m so that the investor would carry out the project. Similarly, the rate agreed for water supplied by Red River Surface Water Plant in Dan Phuong district is VND10,365 (US$0.446).

Earlier, at a press conference on November 12, Nguyen Viet Ha, director of the Hanoi Department of Finance, explained that Duong River Surface Water Company factored the interest on its VND3,998 billion (US$172.3 million) loan, leading to VND2,003 in financial cost in a c.b.m, which accounted for 20% of the production cost (i.e. about US$0.086 per m3 of water) into the wholesale price of its water.

He added that the Hanoi government was negotiating with the Duong river waterworks and distribution units, on the principle that the wholesale price is not higher than the retail price.

"The rate of US$0.441 per cubic meter is designed from temporary calculation, not a rate that end consumers have to pay," Ha stressed.