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Hefty capital needed for water supply, wastewater treatment
HCMC – Vietnam will need around US$10.2 billion to carry out water supply and wastewater treatment projects in the 2016-2020 period, according to figures released at a press conference in HCMC on August 22 on an upcoming exhibition of this sector.
The figures showed the nation’s daily demand for clean water is projected to rise to nearly 9.6 million cubic meters and around seven million cubic meters of wastewater in urban areas would be treated a day by 2020.
In Vietnam, 795 cities and urban areas need a total of 7.4 million cubic meters of clean water a day, a 1.6-fold increase from a decade ago, and the current water loss rate is estimated at 20%. Meanwhile, there are around 30 plants nationwide with a daily treatment capacity of 860,000 cubic meters, or only 12% of the demand.
Nguyen Hong Tien, head of the Technical Infrastructure Department at the Ministry of Construction, predicted the population in urban areas would reach 44 million people in 2020 and their demand for clean water is put at nearly 9.6 million cubic meters.
To meet the demand, US$3.3 billion would be required for building new water processing facilities and upgrading the existing ones. In addition, new wastewater treatment plants for urban areas would take up to US$6.9 billion.
Tien said the ministry is weighing a project to build a plant with a daily capacity of 300,000 cubic meters in the Mekong Delta to supply clean water for people in the western part of the Hau River. The World Bank has pledged to provide some US$400 million for the project.
About 40 wastewater treatment facilities with a combined capacity of 1.6 million cubic meters a day are under construction and will be built in the coming years.
The Ministry of Finance, in collaboration with the Ministry of Natural resources and Environment, will submit to the Government a draft decree governing the environmental protection fee on wastewater with a view to keeping the fee at up to 10% of the running water price.
Cao Lai Quang, chairman of the Vietnam Water Supply and Sewerage Association, said the fast urbanization rate of 2% a year in Vietnam has piled pressure on the need to build many more water supply and wastewater treatment facilities while official development assistance (ODA) pledges by international donors are in decline. It is difficult to mobilize funds from other sources for projects in the sector.
Another challenge for the sector is increasing pollution of water resources. Drought and saltwater intrusion have affected the quality of water for households and farming, Quang pointed out at the press conference.
Energy saving and renewable energy exhibition RE&EE Vietnam 2016 and water, technology and wastewater treatment show VietWater 2016 will take place at the Saigon Exhibition and Convention Center in HCMC’s District 7 from November 9 to 11.
The two exhibitions are expected to attract 400 firms from 38 countries and territories, up 38% compared to the same events last year.