MACAO WATER SEEKS SUBSIDY INCREASE

2014/12/12

From:Macau Business Daily

Macao Water Supply Co Ltd wants the government to increase the water supply fee in 2015 to help stem increasing operational costs.
The company’s executive director, Fan Xiaojun, said a fee increase of at least the same percentage as that of inflation would suffice. Mr. Fan is quoted by local media as saying that costs related to human resources and the different types of outsourcing services, in tandem with the costs involved in the purchase of raw materials, have increased by between 30 per cent and 50 per cent, with some of these increasing more than just once.
“Honestly speaking, we don’t have very high expectations. We would be satisfied if it [the subsidy increase] can keep up with the inflation rate or [be] a little bit higher”, Mr. Fan was quoted as saying.
The city’s sole water distributor saw its profits rebound last year by 8.4 per cent over the previous year after the government granted a 5.92 per cent rise in payment for its services.
But in April this year the government was still considering a further request from Macao Water Supply Co Ltd, asking for another hike this year.
Macao Water’s 2013 profit after tax totalled MOP53.6 million (US$6.7 million), growing by 8.4 per cent from MOP49.4 million in 2012. The profit generated by its core business – water supply services – was MOP48 million last year, the company announced earlier this year.
Currently, the government pays Macao Water MOP4.65 per cubic metre of water it supplies to the city, against MOP4.39 before the nearly 6 per cent rise. This rise does not translate into the increase in water tariff paid by the public.
Earlier this year, however, the company applied for another 16 per cent increase in government payment, which is analysing the request and has not responded.

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