The Local Government Division approved a proposal from the Chattogram Water Supply and Sewerage Authority (CWasa) to increase water prices for both domestic and commercial users from September 2022.
This is the second time this year that CWasa will increase water prices.
AKM Fazlullah, managing director of CWasa, told The Business Standard, "The production cost of water has increased. We will also have to start development loan repayment from 2023. The price of water has to be increased considering these issues."
Currently, the water rate per unit (1,000 litres) for domestic use is Tk13 while it is Tk31.82 for commercial users in Chattogram.
The rates will go up to Tk18 (domestic) and Tk37 (commercial) per unit after the price hike comes into effect.
Currently, the CWasa has 78,542 domestic and 7,767 commercial connections.
Earlier, the authorities increased water prices in January this year from the previous prices of Tk12.40 to Tk13 per unit for domestic connections and from Tk30.30 to Tk31.82 per unit for commercial connections.
In 2009, domestic customers in Chattogram were charged Tk5.41 per unit of water and commercial customers were charged Tk15.32 per unit. This was later increased in 2014.
The CWasa is staggering under the burden of a Tk6,328 crore loan.
In the last decade, it has undertaken four mega projects to increase water supply in the port city at a cost of around Tk9,900 crore, a major portion of which came as loans provided by various organisations, according to sources concerned.
The sources said the loan money was borrowed from three foreign organisations, including Jica and the World Bank, for the implementation of the four projects.
The utility service provider will have to pay around Tk628 crore in interest for these long-term loans. The installments for repaying the loan will start from next year. In order to pay the installments, the CWasa authorities have signed a subsidiary loan agreement with the government.