Financial management for water sector

18 12-2013

Binh Duong Water Supply Sewerage Environment Co., Ltd is a state business with main functions in managing, exploiting, treating and providing clean water and other services relating to sewerage, waste water treatment, environmental services. At present, total capacity of water provided is more than 200,000m3/day, serving for over 1,000,000 residents. Water lost rate in 2012 <9%. total revenue in 2012 ≈ 3 million usd. rate of benefit/owner capital is 4%-5%. Total revenue in 2012 ≈ 3 million usd. Rate of benefit/owner capital is 4%-5%.

Clean water production also has similar maners to other manufacturings. Treatment technology (making product) of treated plant must be effective; it means that cost for one product must be low.

Distribution: clean water is also be dilivered. It is a kind of goods with stable and long term customers.

Distribution mains is under ground, causing difficult in monitoring and managing, so how to keep it safe?

Raw water source is mainly depended on the nature.

When we know that our prduct is to serve for social needs, we will solve this issue step by step. We have to know which is a permanent difficulty, which is a temporary one?

1. The 1st issue:

The most difficulty is raw water source as it depends on natural resources; however, natural resources are limited so we have to consider how to use it in a useful way as well as to reserve it on both quantity and quality.

Where is the most suitable location for raw water resource? In case we do not make careful calculation and consideration in selecting location for water treatment plant, it can cause different in water tariff. It should be harmonious between to be near consuming households and raw material.

Together with rapid industrial development happening in the world, Environmental pollution and climate change have been changing more and more severely, this puts us in a risk of raw water resource in the future, how it will be?

2. The 2nd issue:

The 2nd issue not less important than financial management is delivery; this means distribution mains to consumers.

As mentioned above: characteristic of our distribution mains is to be placed under ground, very difficult to monitor, especially to control leakage. Moreover, water pipelines are often located under pavements or streets. These positions are very sensitive and often under risk caused by transportation, such as vibration, house construction, placing pile, works foundadtion, trees and there are many other underground works also placed in paralell with water pipe lines. Therefore, we do not have much land as well as choices to install clean water pipes.

Facing to the issues mentioned above, we may say that difficulty for investors is how to select appropriate measurements for distribution mains: material, using period (pipe diameter, pipe quality), location and implementing method. If we do not consider these factors carefully, not select a suitable, scientific and economic method, it will change water tariff. As pipelines are under streets and pavemenst, they are not easy for replacement.

In recent years, our company have selected material, implementing method to make pipelines durable more than 30 years in average

3. The 3rd issue:

Treatment technology for plant

We are in the developing information technoloy age, so it is rather advantageous for us in selecting an optimum technology for treatment plant. According to experienced consultants, there are many advanced water treatment techologies meeting investor’s requirements, suitable with management and operation capacity.

This is a criterion which is received much attention at any technology discussion before making investment by BIWASE

Thanks to attaching much importance to management and financial effectiveness, our company has been being continuosly developed during recent years, water supply capacity is increased 10% - 15% every year, profit and income are in top of businesses in Viet Nam.

Especially, we attach much importance to saving power in maximum and reduce water lost rate in minimum (<9% in 2012). From benefit getting by water lost reduction, we actively make re-investment to reduce power consumption and seek for more water lost reduction.

(Noted by M.K)

Activity News

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS
06 03-2025

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS

It is forecasted that during this dry season, Long An will have about 23,669 hectares of cultivated land at risk of being affected by drought, salinity, and water shortages

MANY LIMITATIONS, OBSTACLES IN THE PROCESS OF IMPLEMENTING BINH DUONG'S WATER SUPPLY AND SEWERAGE POLICIES
28 02-2025

MANY LIMITATIONS, OBSTACLES IN THE PROCESS OF IMPLEMENTING BINH DUONG'S WATER SUPPLY AND SEWERAGE POLICIES

The survey delegation from the National Assembly's Committee on Science, Technology, and Environment has pointed out numerous limitations and obstacles in the process of implementing Binh Duong's water supply and sewerage policies.

BIWASE PLANS FOR A MINIMUM PROFIT OF 640 BILLION VND
06 03-2025

BIWASE PLANS FOR A MINIMUM PROFIT OF 640 BILLION VND

In 2025, Biwase has set a plan to achieve a minimum total revenue of 4,760 billion VND (with the parent company reaching at least 2,920 billion VND and its subsidiaries at least 1,840 billion VND), and a minimum after-tax profit for the parent company and subsidiaries of 640 billion VND (with the parent company at least 520 billion VND and subsidiaries at least 120 billion VND), representing minimum growth rates of 8.5% and 12.7%, respectively, compared to the results achieved in 2024.

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS
06 03-2025

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS

It is forecasted that during this dry season, Long An will have about 23,669 hectares of cultivated land at risk of being affected by drought, salinity, and water shortages

MANY LIMITATIONS, OBSTACLES IN THE PROCESS OF IMPLEMENTING BINH DUONG'S WATER SUPPLY AND SEWERAGE POLICIES
28 02-2025

MANY LIMITATIONS, OBSTACLES IN THE PROCESS OF IMPLEMENTING BINH DUONG'S WATER SUPPLY AND SEWERAGE POLICIES

The survey delegation from the National Assembly's Committee on Science, Technology, and Environment has pointed out numerous limitations and obstacles in the process of implementing Binh Duong's water supply and sewerage policies.

BIWASE PLANS FOR A MINIMUM PROFIT OF 640 BILLION VND
06 03-2025

BIWASE PLANS FOR A MINIMUM PROFIT OF 640 BILLION VND

In 2025, Biwase has set a plan to achieve a minimum total revenue of 4,760 billion VND (with the parent company reaching at least 2,920 billion VND and its subsidiaries at least 1,840 billion VND), and a minimum after-tax profit for the parent company and subsidiaries of 640 billion VND (with the parent company at least 520 billion VND and subsidiaries at least 120 billion VND), representing minimum growth rates of 8.5% and 12.7%, respectively, compared to the results achieved in 2024.

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS
06 03-2025

LONG AN URGENTLY INSTALLS ADDITIONAL PIPELINES TO BRING WATER TO DROUGHT- AND SALINITY-AFFECTED AREAS

It is forecasted that during this dry season, Long An will have about 23,669 hectares of cultivated land at risk of being affected by drought, salinity, and water shortages