Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19. Although tariff roadmaps are based on full cost recovery principles that are approved by provincial governments, each increase within the roadmap is also subject to provincial approval before being implemented. This can lead to delays in implementing the roadmap.
Water Sector Investment Program - Tranche 3