From March next, Ctg Wasa to collect tariff on tube well water

Chattogram Water Supply and Sewerage Authority is set to impose tariffs on the water extraction by deep tube wells from next March, in an apparent bid to raise its revenue to lessen the burden of loan repayment, starting from the coming year.

However, the authorities said they took the decision in its last board meeting held on 11 October with the aim of discouraging groundwater extraction and establishing complete control over water.

As per the decision of the Chattogram Wasa board, the tariff of deep tube well water will be Tk6 per unit for residential users while Tk12.34 per unit for non-residential customers which will be in effect from 1 March next year.   

The CWasa is staggering under the burden of a Tk6,328 crore loan taken from three foreign organisations, including Jica and the World Bank, for the implementation of the four projects, involving Tk9,900 crore to increase water supply in the port city. The installments for repaying the loan will start next year. The utility service provider will have to pay around Tk628 crore in interest for these long-term loans, according to sources concerned.

Besides, the company is under debt pressure with income and expenses equal. In such a situation, the company is looking for ways to increase income from alternative sources.

However, the Chattogram Wasa Board Chairman Professor Jahangir Alam declined to comment in this regard.

Chattogram Wasa has a total of 4,810 approved deep tube wells. Among them, 3,341 are residential buildings and 1,469 are non-resident buildings. Until now, the company used to collect annual renewal fees for these tube wells. From next year, the authority will collect the water price by installing metres in these tube wells as well.

Chattogram Wasa has no source of income except water supply bills, license of deep tube wells, and FDR interest. Apart from this, the company can increase its revenue by increasing the water tariff. There is also dissatisfaction with this.

Moreover, 28-30% of produced water is shown as non-revenue water as system loss. About Tk50 crore are wasted in this sector.

A senior official of Chittagong Wasa told TBS that the monthly bill for Wasa connection in a high-rise with 50-60 flats is Tk500-1000. During visits of Wasa metre inspectors, they pay low water connection bills, showing deep tube wells. So, the issue of underground water was also taken consideration.

In two phases, the authorities increased water prices in January and September this year to Tk18 per unit for domestic connections and Tk37 per unit for commercial connections. As per the directive of the ministry, the authorities cannot hike water tariff more than 5% in a year.  

Expressing resentment, Minhaj Uddin, a building owner of Foy's Lake area, told TBS, "We have a connection for Wasa's water supply line but required water does not come. Still, we are paying the bill. If we pay the bill for water extract with the deep tube well, it will be unjust. We are also paying the electricity bill for the motor to extract water from underground."

Chattogram Wasa Managing Director Engineer AKM Fazlullah was unavailable over the phone to talk about this.  

Board Member, Chattogram City Corporation's 24 no-ward councillor, Nazmul Huq Duke told The Business Standard that the decision has been taken in a bid to discourage the extraction of groundwater and establish complete control over water.

As per sub-section-3 of the Water Supply and Sewerage Authority Act 1996, none has the right to collect water, purify, pumping, store or supply, and sewerage except the Wasa authority.  On this ground, they decided to impose tariffs on tube well water.