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Malaysian firm invests US$5m in Savannakhet water supply
Water needed for industrial development in the Savan-Xeno Special Economic Zone in Savannakhet province could soon meet the growing demand, a senior provincial official has said.
Savannakhet Planning and Investment Department Director Mr Sythone Natharath made the comment yesterday amid concerns by investors over the insufficient supply of water in Laos' first special economic zone.
Mr Sythone said the provincial administration had given the green light for a Malaysian company to team up with the Savannakhet Water Supply Enterprise. They will jointly upgrade water supply capacity in Kaysone Phomvihane district from the present 15,000 cubic metres a day to 30,000 cubic metres.
“I think water supply to the provincial capital and the special economic zone will soon meet demand,” he told Vientiane Times .
The Malaysian firm will invest US$5 million to upgrade water production and supply facilities in the provincial capital. The size of the investment means the firm holds a 70 percent share in the joint venture.
“The provincial administration decided to allow a foreign firm to hold a share in the joint venture because we don't have sufficient funds to develop the facilities. In the meantime, the demand for water in Kaysone Phomvihane district and the special economic zone is increasing,” Mr Sythone said.
The Malaysian company has installed a water tank and is now upgrading pipes in the provincial capital.
Mr Sythone said the work should be completed in the near future, and would result in an adequate supply of water to consumers and industrial developers.
While a private entity was allowed to operate a public utility, it could not increase the price of water without permission from the local and provincial authorities, he said. Such an increase would negatively affect local residents and businesses in the province.
According to Savannakhet Water Supply Enterprise officials, water used for household consumption costs 1,500 kip per cubic metre. Businesses pay 4,300 kip per cubic metre, except those that use water as a raw material to produce drinking water or ice, which pay 5,500 kip per cubic metre.
The government gave the go-ahead for the private sector to share with state enterprises in operating water supply facilities a few years ago, when demand for water in urban areas and industrial development zones began to increase rapidly.
In Vientiane, the Vientiane Water Supply Enterprise has teamed up with a Vietnamese company to build a water production facility on the outskirts of the capital to supply water to the National Stadium and an industrial park in the area.
The joint venture sells water to the Vientiane Water Supply Enterprise before it is piped to households and businesses in Vientiane.
vientiane times
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