Abfa Says Cannot Meet Rising Costs

The widening gap between what consumers pay and the final cost of water treatment and supply has pushed the state-owned Tehran Province Water and Wastewater Company (Abfa) into the red to the tune of $120 million so far, the company director said.
“Treating and supplying one cubic meter of water in the sprawling capital cost 10 cents, but subscribers are charged less than 3 cents,” Mohammad Reza Bakhtiari was quoted as saying by the Energy Ministry news website.
Referring to Abfa’s financial problems, he said a revised policy is essential for water tariffs to narrow the widening gap between Abfa’s expenses and revenue from water.
The national water network in Tehran Province stretches over 10,000 kilometers, of which 40% (or 4,000 km) is decrepit and must be replaced, he noted.