City Reporter: Chittagong WASA is in financial crisis due to the increase in installment payments for implemented projects and other costs, including water production. In the last financial year, a deficit of around one hundred crore rupees has been shown in income and expenditure. The operating expenses have doubled, and since the last financial year, about 21 crore rupees have to be paid for the loans for the three projects.
The cost of producing water for refineries has increased. But even as the water supply increased, income did not increase proportionately. In the name of system losses, about 50 crores of revenue are lost annually. A minimum bill of four hundred taka is being given without a meter for about 10,000 connections on the pretext of a broken meter and not getting water supply.
When asked to know, WASA Managing Director Engineer AKM Fazlullah told the media, “Our water production cost has increased a lot. The salaries of officers and employees and overtime are increasing. Many projects are currently being implemented. The deficit has increased due to the expenditure of some money on the projects under implementation in the last financial year. This year, there will not be so much of a deficit. A proposal will be sent to increase the price of water. If the projects under implementation are launched, there will be no financial deficit in Wasa. A 13-member Board of Directors consisting of six officers on deputation from the Civil Service and representatives of various classes and professions is in place to manage WASA activities.
In every meeting of the board of directors, various steps are taken to stop irregularities and increase revenue. But the steps taken at the field level are not effective. In this case, a long-standing irregularity has taken root in the Wasar revenue department. It has been alleged that new connections are not coming under the bill even after four to five years. Water theft in the name of system loss is not decreasing. On the other hand, projects are being taken up one after another with foreign and GOB funding. But not enough revenue is being raised from already-implemented projects.
The information obtained shows that the repayment of the loan installments for the three projects implemented with foreign and the government’s own financing has started since the last financial year. Sheikh Hasina Water Treatment Plant-1 at Rangunia has been implemented with JICA funding. JICA’s loan for this project is Tk 733 crore (44 lakh). 18 crore and 33 lakh rupees have to be paid annually for the installment of this loan. Besides, several projects have been implemented with the government’s own funding for emergency water supply. Like express power lines for generators, around 90 deep tube wells and distribution lines have been constructed in several phases for emergency water supply.
Two such projects have to be repaid. Out of that, the repayment of the debt of a project costing Tk 24.87 crore and about Tk 1 crore per year and a project costing Tk 478 crore and Tk 2 crore per year has started since the last financial year. Besides, the Sheikh Hasina water treatment plant-2 project has been implemented. This project is also funded by JICA. Debt repayment for this project will also start in the future. Besides, another water treatment plant project is being constructed in the Boalkhali Vandaljuri area, funded by Korea. WASA’s annual income was around Tk 185 crore in the last financial year. And the expenditure is about 286 crores per year. Due to this, the WASA authority has fallen into a deficit of about 100 crore rupees per year. It has been said earlier by the government that it will not be able to give any subsidies.
WASA has to meet its expenses from its own income. So how will it be possible to meet the huge deficit? When asked to know, WASA board member Siddharth Barua told FCA media, “Water production and other costs have increased. In order to reduce losses, proper water billing and system losses should be reduced. Currently, the system is showing a loss of over 30 percent. Monitoring the water supply should be strengthened. A pilot project has been taken up to introduce an area-wise monitoring system for meter control. Projects should be taken to bring customers under the prepaid metering system. WASA is distributing 18,117 million liters of water annually. Out of that, 12 thousand, 832 crore liters are being sold. There is no bill for the rest of the water.
The annual income from selling water is Tk 193 crore (39 lakh). According to the relevant department sources of WASA, there are currently 83 thousand water connections. Among them, the billing is for 80 thousand 800 connections. It also includes the $11,000 minimum bill connection. However, an official of the revenue department said that the minimum bill amount has decreased by 2–3 thousand more than before. The minimum bill has been increased from Tk 400 to Tk 600. Currently, 300 to 400 new connections are being made every month. But a member of the WASA Board of Directors complained that the new connection is not coming under the bill even in two to three years. Revenue department people are taking financial benefits from these customers.
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