Macao Water Supply Co. Ltd. has reached an agreement with the government to develop Seac Pai Van Water Treatment Plant for MOP1 billion (US$124.4 million) until the end of 2019, the Marine and Water Bureau (DSAMA) announced yesterday.
According to statements made to Business Daily, Macao Water said its initial proposal involved a two-phase development of the Seac Pai Van Water Treatment Plant that would require a MOP2 billion investment. However, the two parties agreed upon a one-phase development requiring a MOP1 billion investment by Macao Water.
Macao Water said the new water treatment plant will start development ‘shortly’ and is expected to be concluded by the end of 2019.
In order to assist with the plant development, the company requested the government to increase service tax by an average of 6.2 per cent annually until 2019, with the government agreeing to a 5.9 per cent average increase.
The rates will then be changed to MOP5.45 when the new agreement is enforced this year, to MOP5.77 in January of 2018, and then MOP6.08 in 2019.
The increase in service tax will not affect the water price paid by local users, Macao Water told Business Daily.
The DSAMA release states that the Coloane water treatment facility currently has a capacity of less than 30,000 cubic metres per year, with around 90 per cent of the water supply to Taipa and Coloane coming from the Macau Peninsula.
DSAMA predicts water consumption in the areas will reach a maximum of 150,000 cubic metres in 2019, with the new water treatment centre expected to provide 130,000 cubic meters of water.
After its development the city’s daily water supply will increase from the current 390,000 cubic metres to 520,000 cubic metres.