Massive Water Subsidies Decried

The widening gap between what consumers pay and the final cost of water treatment and supply has pushed Abfa to the brink
Massive Water Subsidies Decried
Massive Water Subsidies Decried

The government pays $200 million annually in hidden subsidies to water subscribers nationwide, managing director of the state-owned Water and Wastewater Engineering Company of Iran (Abfa) said.
“Of the total subsidy, $120 million are paid to subscribers in urban areas and the rest to households in rural regions,” Hamid Reza Janbaz was also quoted as saying by IRNA.
Water is a heavily subsidized commodity in Iran and while urban consumers pay less than 50% of its real price, only 25% of the production cost are paid by consumers in rural regions, which shows that Abfa is deprived of $200 million in revenues per annum, thanks to the controversial policy, he added.


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