Staff Reporter :
In the last 14 years, the Dhaka Water Supply and Sewerage Authority (Dhaka WASA) has increased water prices a staggering 14 times, igniting fresh controversy as the organisation now seeks to determine water tariffs based on the economic capacity of Dhaka residents.
In a recent technical survey conducted by Dhaka WASA, a proposal has been tabled to increase water tariffs across different categories, with increments ranging from 24% to a staggering 147%, compared to the current rates. If implemented, this move is poised to burden customers from all economic backgrounds.
Dhaka WASA asserts its commitment to providing water at a lower cost than production expenses.
The current rate stands at 10 Taka per unit (1 thousand liters) of water. However, the proposed adjustment aims to increase the organization’s profit by reducing this charge.
Dhaka WASA emphasizes the need for swift implementation of new water tariffs, aligning with the economic capacity of the city’s residents.
Critics, including urban planners and some of the organization’s employees, argue that the motive behind these tariff hikes is to offset the financial burden resulting from mismanagement and irregularities within WASA.
While natural water production costs remain low, WASA’s reliance on high-interest foreign loans for projects raises concerns.
The financial load from these loans is, in turn, transferred to the public, with the benefits of such projects yet to be fully realized.
Furthermore, Dhaka WASA faces a 20% ‘system loss’ (operational waste). Critics argue that reducing this waste would negate the need for water tariff increases.
By focusing on cutting expenses, Dhaka WASA reportedly reveals an annual profit of nearly 50 crore Taka. Opponents believe that a profit-oriented organization should prioritize waste reduction over tariff hikes.
The issue of determining water tariffs based on economic capacity has been under consideration for several years. Recently, the Local Government Minister, Md. Tajul Islam, highlighted this concern, stating that supplying water to the affluent through profits is inappropriate.
It may be mentioned that the production cost of one thousand liters of water for Dhaka WASA ranges from 26 to 30 Taka, while it is currently sold for 15 Taka. Questions arise regarding the government’s continued subsidy of 15 Taka.
The current water tariff for residential customers in Dhaka WASA stands at 15.18 Taka per thousand liters. This rate is applicable irrespective of the customer’s financial status. Commercial customers, on the other hand, face a charge of 42 Taka per thousand liters for water bills.
Despite the ongoing controversy, specific information about the production cost of water per unit for Dhaka WASA remains unavailable.
The Managing Director (MD) of WASA, Taksem A Khan, acknowledges a significant disparity between production costs, expenditures, and selling prices. However, discussions with multiple WASA officials reveal skepticism about the accuracy of information provided by the management.
WASA sources mention categorising residents based on house sizes, with those exceeding 2,500 square feet considered high-income, those between 1,500 to 2,500 square feet labeled upper-middle-income, those within 1,000 to 1,500 square feet classified as middle-income, and those below 1,000 square feet deemed lower-middle-income.
Low-income groups are identified as those residing in the city’s slum areas. The proposed tariff adjustments and controversies surrounding WASA’s financial practices continue to be subjects of heated debate among city residents and stakeholders alike.
Talking over the issue, Urban planner Adil Muhammad Khan asserts alleged corruption in Dhaka WASA’s water pricing. He emphasizes, “Unfair financial burdens shouldn’t be placed on the customers, regardless of wealth.
When concerns about Dhaka WASA’s pricing transparency emerge, responsible government officials must not stay silent. WASA, as a service-oriented institution, should carefully address the matter of determining water prices.”
