Please Don't Waste Water

The Santo Domingo Waterworks (CAASD) is currently subsidizing 63% of the cost of every cubic meter (m3) served to its customers. According to Listin Diario, it costs RD$5.15 to produce 1 m3 of potable water, but the average customer only pays the CAASD RD$1.91. Potable water reaches 98% of households in Santo Domingo and the National District, according to the report. The report put together by the CAASD says that there is a "culture of non-payment" throughout the community, as well as a lack of awareness about the use of water as a valuable resource. According to Rosa Urania Abreu, a consultant for the CAASD, the minimum rate needed by the waterworks in order to meet their production costs is around RD$10.85/m3. CAASD invests a total of RD$8.35 in the production of each cubic meter of potable water, including the cost of capital, and the current situation is making things difficult. The consultant s! ays that the CAASD is selling a gallon of good water for two cents (RD$0.02), which is 320 times less than the price of a gallon of bottled water. CAASD statistics show that only 50% of clients actually pay for their water, and only 25% have water meters connected to their lines. There are, according to the expert's report, 81,000 water meters hooked up and another 40,000 are due to be installed during 2006. Of course, electricity constitutes a major portion of the production costs, reaching 20% of the actual cost, RD$412 million per year. The other figures provided in the report are also interesting, not only for what they say, but for what they don't say: Payroll expenses are RD$479 million and 23% of the budget; administration costs are RD$381 million and 195 of the costs; maintenance expenses are only RD$61 million and chemicals are just RD$34 million.