1600 families face potential water loss due to company's inability to pay power bills.

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    Nov 11, 2023

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1,600 Chu Se District families in Gia Lai Province might lose clean water access due to unpaid electricity bills by a water plant.


According to Le Vinh Thinh, the general director of Chu Se Water Supply Company, the company is currently facing a financial challenge. Thinh revealed on Thursday that the outstanding electricity bills for September and October amount to VND83 million ($3,411), which unfortunately, the company is unable to settle at this time.

The Gia Lai Power Company has issued a notification stating that in the event of unpaid bills, electricity supply for production purposes will be terminated if payment is not made by Friday.

The power company has once again asked the water firm to settle its outstanding bills. In September, the electricity was on the verge of being disconnected for the water company. However, due to the intervention of the provincial People's Committee, the deadline was extended.

In addition to the outstanding electricity bills, the company is also facing a tax liability of over VND154 million. Due to this, the tax authorities have frozen the company's account.

Thinh revealed that the company faced difficulties as production and business did not unfold as anticipated. Prior to 2018, a substantial investment of VND200 billion was made by investors to establish a water plant catering to approximately 8,000 families in the district. However, regrettably, only 1,600 families expressed interest in procuring water from the firm.

According to Thinh, the lack of access to tap water forces people to rely on well water, which is the primary cause for the company's financial struggles. He further stated that the company has been consistently losing VND500-900 million per month since its inception and has resorted to selling assets in order to compensate for these losses.

The company is facing the issue of unpaid salaries for its employees over an extended period, as well as an outstanding insurance debt of approximately VND600 million.

Thinh expressed that due to our inability to borrow money and the sale of all our properties, we are in dire need of assistance from the province and district.

The Gia Lai People's Committee has urged both the power and water companies to implement necessary measures in order to ensure minimal disruption to people's daily lives.

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