The Dhaka Water Supply and Sewage Authority (Wasa) intends to raise the price of water by at least 20% with an aim to reduce government subsidies.
Taqsem A Khan, the managing director of Dhaka Wasa, made the disclosure while briefing the media, about their recent proposal placed at a Wasa board meeting to raise its tariff by 40%, at the organization’s headquarters in the capital on Wednesday.
He said: “Currently, the government has to pay a subsidy of Tk10 per 1,000 litres of water. No organization can stand on its own feet by begging from the government. We are proposing a 20% hike.”
He also said that if the government wants to raise prices further, they will not object.
“If the government subsidizes the water, the price will not increase. The decision is up to the government,” the MD added.
If the proposal is approved by the Wasa Board, it will come into effect on July 1 this year.
As per the law, Wasa can increase prices at a 5% rate each year.
According to Taqsem, as it is not enough, they have sent a proposal to the ministry in this regard.
On May 5 last year, Wasa had raised the price of water by 5%.
Currently, the price of one litre of water for domestic use is Tk15.18. If the price is raised again at a 20% rate, then the new price will be Tk21.
For commercial use, the price of water per 1,000 litres is currently Tk42 and it will be Tk55 after the hike.
Defending the tariff enhancement plan, the Dhaka Wasa chief said the initiative has been taken to make the organisation financially viable and self-reliant.
“We've to do the debt servicing regularly to pay back the loans taken from international financing agencies to implement our different development projects,” he said.
The government is the guarantor of these loans, he added.
The water tariff of the Dhaka Wasa was raised on 13 occasions in the last 13 years since the Awami League assumed office in 2009.
