Pricing the water products, services based on cost recovery - some thoughts as the irrigation law in effect

Abstract

    Pricing for water products, irrigation service based on cost recovery (from bottom-up and follows the poluter-pay-principle) is the general trend in the world in all public domains such as irrigation sector. From 2008 to date Vietnam has conducted the irrigation service fee waiver or cost compensation for IMCs. This is a "cost recovery in reverse way" (from top-down) and "trim the foot to fit the shoe". Along with the many legal documents from the specified circular guiding the organisation of activities, hierarchical management and exploitation of hydraulic works, the complicated but no-effective technical-economic norms and more. That makes O&M of IMCs in a not cost-effective and efficient way. The enormous potential of the water resources and the costly water system as well as the invisible potential of the company can not be exhausted. This article will debate the pricing for water products and services as the irrigation law in effect.