Tariff policy for urban water supply in the Lao PDR

The decentralised urban water supply sector in the Lao PDR, regulated by the Water Supply Authority (WASA) suffers from adverse financial conditions many of which are attributable to an absence of a coherent and transparent tariff policy. WASA has developed a National Water Tariff Policy, in accordance with its mandated requirements, based upon the concepts of social fairness, protection of the environment and cost recovery recognising the need for returns on capital and affordability. This Tariff Policy was officially established by the Minister for the Ministry of Communication, Transport, Post and Construction on 26 April 2004, and approved by the Prime Minister on 7 May 2004. The Policy strives to balance the needs of the stakeholders in the sector especially the operators and their customers. The adoption of a Tariff Policy provides confidence for investors, customers and operators that will provide, in the longer term, a sustainable water supply service for all.