Guangdong will raise its price of raw water supplied to Macau by 6.9 percent for a new three-year period, the Macau Marine and Water Bureau (DSAMA) announced in a statement yesterday.
However, the statement underlined that for the time being the Macau government does not plan to raise tap water charges considering that the city’s economy is still recovering from the adverse impact of the three-year COVID-19 pandemic.
Macau is almost completely dependent on raw water supplies from Guangdong.
The statement noted that according to the agreement with Guangdong on the supply of raw water to Macau, both sides are required to negotiate on the possible adjustments on the raw water price every three years. The pact is officially known as Guangdong-Macau Water Supply Agreement.
According to the agreement, the statement noted, a change in the raw water price every time is primarily based on the consumer price index (CPI) over the past three years. The statement did not elaborate about which regions the CPI refers to.
According to the statement, the raw water price for the new three-year period from 2023 through 2025 will be 2.77 yuan per cubic metre, an increase of 6.9 percent from the 2.59 yuan per cubic metre for the previous three-year period from 2020 through 2022.
According to yesterday’s statement, officials from both governments signed a supplementary agreement on raising the raw water price listed by the Guangdong-Macau Water Supply Agreement, at the DSAMA headquarters on Wednesday. The accord was signed by Wang Lixin, the director general of the Guangdong Water Resources Department, and DSAMA Director Susana Wong Soi Man.
The statement underlined that with an increased water supply cost from Guangdong, the local government’s annual expenses on its tap water subsidy are expected to increase accordingly.
The statement noted that Macau’s tap water charges were last raised in 2016, in spite of which, the statement said, for the time being the local government has no plans to increase tap water charges considering the city’s current post-pandemic economic situation.
The statement said that the local government’s tap water subsidy amounted to 230 million patacas last year.
Last year, the government’s subsidy paid around 42 percent of tap water charges for the household group with the least amount of tap water consumption.
Depending on their monthly tap water consumption, Macau’s households are divided into four groups. According to the DSAMA website, last year the government only subsidised around six percent of tap water charges for the household group with the highest amount of tap water consumption.
Guangdong Water Resources Department Director General Wang Lixin (left) and Macau Marine and Water Bureau (DSAMA) Director Susana Wong Soi Man shake hands at the DSAMA headquarters on Wednesday after signing a supplementary agreement on raising the raw water price listed by the Guangdong-Macau Water Supply Agreement. – Photo: DSAMA
