A document from the Southern Regional Water Board (ARA-Sul) presented to the meeting pointed out that bulk water rates have not been increased for eight years.
In 1997, the rate for agriculture, for water purchased from the Massingir and Pequenos Libombos dams, was fixed at 40 old meticais, and for other purposes at 70 old meticais per cubic metre. (At today's exchange rates that is equivalent to 0.16 and 0.28 US cents respectively.) The ARA-Sul document pointed out that water companies cannot be viable, if they cannot even cover their operational, maintenance and management costs.
The current bulk water rates, it said, "do not meet the need to recover the investments made, much less cover running costs and the routine and regular maintenance of infrastructures".
ARA-Sul said that two years ago it drew up a business plan analysing in detail its real running costs, and the human, material and financial resources required if ARA-Sul "is to make a qualitative leap that results in improving services to the users and to society at large, as well as making the company self-sustaining".
Thus, the document added, by increasing the amount the users pay, the burden on the state would be lessened.
Opening the Monday meeting, the Minister of Public Works, Felicio Zacarias, stressed that it is up to the National Water Council, as a consultative body, to issue opinions on matters to be approved by the government in the domain of water policy - including tariffs.
Thus this meeting should debate the proposal from ARA-Sul for increased bulk water tariffs, as well as regulations for water licences and concessions, and a national strategy for water resource management.
SOURCE: AIM
