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NORDIS
WEEKLY April 17, 2005 |
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New pipeline system hikes water prices |
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URDANETA CITY (Apr.13) — Awaiting the result of a bidding process, a new pipeline and water system has spelled an average P50 increase in minimum rate in water consumption among locals here. A household that consumes a minimum of 10 cubic meters a day would have to spend P12 for water consumption. Minimum rate is now placed at P181 while in 2010 this would reach P288 or an average P20 a day for a family. The price hike is still low considering economic factors that also grip water tariff along with other commodities, said Urdaneta City Water District (UCWD) General Manager Caciano Callanta. Price increase taking effect every two years in depreciation is aimed at paying the loan from the Local Water Utilities Authority (LWUA) and Kreditanstalt Fuer Wiederaufbau (KFW), a German bank based in Frankfurt. Mayor Amadeo Perez said he is yet to be briefed by the firm as to the concerns of rising costs of water services that will definitely add to the burden of the consumers. The project has been approved by the National Economic Development Authority (NEDA). The water firm has tied-up with LWUA and KFW late last year to employ a new pipeline and sewerage system in this city that depends on four existing deep wells. Two more two deep wells will be installed this year and is seen to augment the 4,200 service connections the firm presently tends. The new water facility will be installed in barangays Oltama and Camanang. According to Callanta, initial operation will secure about 2,932 additional connections. Ten percent of the P152.3 million project or about P10 million will come from UCWD while 75% or P116 will be sourced out from KFW, payable in 20 years. Only nine of the 34 villages in this city avail of the water services which is dependent on groundwater sources. The expansion project intends to cover an additional 19 villages to boost service connections to 7,119 in 2006 and 11,026 in 2010. In 2004, the water district has recorded a 117 liters per second production capacity of the existing four deep wells but with the project taking operation in 2006, will bolster the water production to 154.4 liters per second in 2010. However, a lowering at 99.1 liters per second capacity is seen in 2006 due mainly to leakages in pipelines, authorities said. # Jong de la Cruz for NORDIS |
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