On April 28, the Office of the People's Committee of Quang Nam province said that it had issued a document conveying the opinion of Vice Chairman of the People's Committee of Quang Nam province Tran Nam Hung, assigning the Department of Finance and the Department of Construction to inspect and review the clean water price plan and the application of the third water price of Quang Nam Water Supply and Sewerage Joint Stock Company.

According to a report sent to the Provincial People's Committee, Mr. Ngo Duc Trung - General Director of Quang Nam Water Supply and Sewerage Company said that the company is currently facing serious financial difficulties. Specifically, by the end of 2024, the company had overdue debt of more than VND 98 billion from ODA loans, unpaid interest of more than VND 93 billion and debt to the state budget of more than VND 54.7 billion. The main reason for this situation is that the third period of clean water price has not been applied, causing revenue to be insufficient to cover operating costs and debt repayment.

Quang Nam Water Supply and Drainage Joint Stock Company will lose about 51 billion VND in 2024.

Previously, in 2021, the Company had developed a clean water price plan and submitted it to the Department of Finance for appraisal. Accordingly, the water price needed to increase by VND 2,957/m3 from October 2022. However, in order to avoid sudden impacts on people, the People's Committee of Quang Nam province approved a price increase roadmap in 3 phases, applied from October 2022, October 2023 and October 2024 respectively.

Due to the suspension of the third water price in October 2024, Quang Nam Water Supply and Sewerage Company said that it is estimated that it will lose about VND51 billion in 2024. The company has repeatedly requested the province to allow the application of the new price in May 2025 and to provide a budget subsidy of more than VND11.8 billion to make up for the shortfall in revenue.

However, the People's Committee of Quang Nam province still requires Quang Nam Water Supply and Sewerage Company to fully fulfill its financial obligations before considering support policies. In May 2024, the province issued a document requesting the company to repay state budget capital for clean water projects that it has received and exploited for business. In case the company fails to fulfill its commitment, the province will not consider increasing water prices according to the approved roadmap.

Tam Ky Water Plant belongs to Quang Nam Water Supply and Drainage Joint Stock Company.

According to the investigation, on April 27, 2022, Quang Nam Water Supply and Sewerage Company and the Department of Finance signed a commitment to sign a debt acknowledgment and repayment of state budget debt for clean water projects. As of April 15, 2024, the enterprise must pay more than 7.71 billion VND to the state budget (excluding late payment interest) after 12 debt repayment periods, but the company has not yet fulfilled its obligations.

Quang Nam Province has repeatedly urged and requested the company to strictly implement its financial commitments. The delay in debt repayment not only puts pressure on the local budget but also affects the consideration of the company's proposals in the future.

Currently, the Department of Finance and the Department of Construction are coordinating to review and carefully evaluate the financial plans of Quang Nam Water Supply and Drainage Company, reporting to the Provincial People's Committee for appropriate handling, ensuring both support for businesses to overcome difficulties and protection of the legitimate rights of the State and people.

Source: https://baophapluat.vn/no-hang-tram-ty-cong-ty-cap-thoat-nuoc-quang-nam-xin-tang-gia-nuoc-post546917.html