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Affordable Water Pricing for Slums Dwellers in Dhaka Metropolitan Area: The
Case of Three Slums
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Tahmid Ahmed
Bangladesh University of Engineering and Technology
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Abstract
Ensuring affordable and equitable access to safe water for all in urban areas is a major water
management challenge for Bangladesh. Both the availability and the quality of water are
declining in the poor urban areas, especially in Dhaka, the capital of Bangladesh. Lack of
access to affordable drinking water in the slums of Dhaka metropolitan area (DMA) poses a
major challenge for Bangladesh to achieve target 6.1 of the United Nations sustainable
development goals which aims to provide equitable access to safe and affordable drinking
water for all by 2030. The aim of this research is to address the following question: Are slum
dwellers in Dhaka metropolitan area capable for paying for Dhaka water supply and
sewerage authority’s (DWASA) services? This study focused on three slums in Dhaka
metropolitan area namely Korail slum, Godown slum and Tejgaon slum to determine the
current water price in these slums and to compare it with the water price of DWASA. Results
show that for domestic water use slum dwellers are paying about 7 to 14 times higher than the
legal connection holders covered by DWASA. Slum dwellers are spending about 12 to 15% of
their average monthly income for domestic water supply, whereas in most of the countries,
legal connection holders are spending less than 5% of their average monthly income for the
same purpose. For secure water supply, all the respondents in these three slums are willing to
pay 3.4 times more than the current water price of DWASA. Finally, it is concluded that the
slum dwellers of the three selected slums in Dhaka metropolitan area are capable to pay for
DWASA services.
Keywords: Water pricing, affordability, slum dwellers, Dhaka metropolitan area, Dhaka
water supply and sewerage authority
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Affordable Water Pricing Rahaman and Ahmed
DMA is declining at an alarming rate over the In Bangladesh, land is the main means to
last few decades. Thus, providing equitable generate financial assets to the rural poor
access to safe and affordable water for all, through agricultural production. Due to rapid
especially for slum dwellers, through efficient population growth, access to land has been
water management is a major challenge in limited for majority of rural people and as a
DMA. consequence, landless people migrate to
Dhaka in a hope to improve their living
Slums in Dhaka Metropolitan Area condition even though that hope fades away
Dhaka is the living place of 14 million people when they enter Dhaka and face ground
[6]. Here, a huge number of people are realities in slum areas [16].
involved with the informal jobs like rickshaw
pulling, hawkers, roadside businesses, Slum dwellers in Dhaka metropolitan area
domestic servants etc. have limited access to safe water, sanitation
and hygiene, sewerage electricity, gas and
The phenomenon of slums and squatters in other basic amenities required to sustain a
Dhaka is as old as the city itself [7–9]. But the quality life [17]. Most slums dwellers have
city has experienced a prolific growth of slums limited access to safe water for drinking
and squatters since the independence of the purpose only while majority use unsafe water
country in 1971 (Figure 1) [10]. By the end of for washing, bathing and other purposes.
1976, only 10 slums existed in Dhaka with a Around 80% of urban poor do not have access
population of 10,000. The number has to sanitation [18] while only 12.4% have
increased to 2,156 settlements with a access to underground drainage system [14].
population of 718,143 in 1993, and 3007 Lack of access to drinking water and sanitation
settlements with a population of 1.1 million in facilities in the slums of DMA pose a major
1996 [11]. Over the last three decades, around challenge for Bangladesh to achieve targets
90% of the slums settlements have developed 6.1 and 6.2 of the recently adopted UN
in DMA. During 1981–1990, the slums growth sustainable development goals (SDGs) which
was 45% and during 1972–1980, the growth aim to provide equitable access to safe and
was around 26%. Since 1991, the slums affordable drinking water and sanitation
growth in DMA was around 18% [12]. facilities for all by 2030.
Poor people from rural areas mainly migrate to The study by Ahsan et al. reveals that 33% of
DMA for improving their financial condition the urban poor still have no access to
and getting better opportunities in the capital electricity. The study also found that 72% of
[13]. The majority of urban poor migrate to the urban poor use traditional fuel for cooking
Dhaka metropolitan area from a few districts and only 22% have access to gas facilities.
like Faridpur, Barisal and Comilla [14]. More than 60% of the poor just dump their
garbage on the road or on the ground [19].
The rural poor migrate to Dhaka metropolitan
area due to several push and pull factors. The UN-Habitat group defines slum household as
push factors include, among others, rapid “one or a group of individuals living under the
population growth, floods, drought and natural same roof in an urban area and lacking one or
disasters, river erosion, growing landlessness, more of the following five amenities: (1)
unemployment and exploitation by the rural secure tenure, (2) sufficient living area, (3)
elites and money lenders [15]. The pull factors access to improved water, (4) access to
include employment opportunities, improved improved sanitation facilities, and (5) durable
quality of life and relative freedom for female housing” [21].
workers [15].
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 16
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 17
Affordable Water Pricing Rahaman and Ahmed
Dhaka Water Supply and Sewerage Total production of DWASA is 1980 million
Authority (DWASA) liters per day (MLD), whereas total production
Dhaka water supply and sewerage authority capacity is 2182 MLD (DWASA, 2015).
(DWASA) is responsible for providing water Tables 2a and b show the surface water
and sewerage services in Dhaka metropolitan treatment capacity of various treatment plants
area (DMA). However, DWASA is not legally of DWASA and various aspects of drainage
allowed to provide services to illegal system covered by DWASA.
settlements in DMA, e.g. slums dwellers.
DWASA is a service oriented autonomous Table 2a: Surface Water
commercial organization in the public sector, Treatment Capacity [22].
entrusted with the responsibility of providing Sayedabad water treatment plant 225 MLD
water supply, sewerage disposal (wastewater), Chadnighat water treatment plant 39 MLD
and storm water drainage services to the urban Narayangonj water treatment plant 28 MLD
dwellers of the rapidly growing Dhaka city
Total surface water production 257 MLD
that is the capital of Bangladesh. It covers
more than 360 sq. km. service area with
12.5 million people with a production of Table 2b: Various Aspects of Drainage System
almost 2110 million liters of water per day of DWASA and its Coverage [22].
(MLD). DWASA faces a number of Coverage area 110 sq.km
challenges including unplanned city Population served 25%
development and informal settlements, Treatment plant 1
transitioning to using surface water instead of Treatment capacity 120000 m3
groundwater, and lack of large investment
Actual treatment 30000–50000 m3
funding [22, 23].
Connections 59510 numbers
Dhaka metropolitan area is surrounded by Sewerage line 881 km.
numerous rivers and canals, such as
Buriganga, Balu, Turag and Shitalakshya, but Objectives of the Study
the quality of water in these rivers is mostly The key aim of this research is to find out
not suitable for drinking and domestic whether slums dwellers in Dhaka metropolitan
purposes [24]. Surface water sources from area are capable for paying for DWASA
surrounding rivers and lakes have already services. This paper has two objectives. These
exceeded the standard limits of many water are:
quality parameters because of the discharge of 1. What is the current water price in selected
huge amount of untreated municipal waste slums in Dhaka metropolitan area?
materials and sewage effluents [24]. As the 2. What percentage of income slum dwellers
treatment of the water from surface water are spending for water?
sources has become very expensive, DWASA
has to depend on groundwater aquifers for METHODOLOGIES
drinking water supply [24]. Table 1 For this study, following methodologies have
summarizes the overview of the water been used:
production in Dhaka city. A field study has been conducted between
July and August 2014 that includes a semi
Table 1: Water Production in Dhaka City by structured questionnaire survey and focus
DWASA [22]. group discussions with selected slums
Water connections 286911 numbers dwellers and various stakeholders.
Daily water production 2087.50 MLD Various stakeholders for this research
Deep tube well (DTW) in operation 560 numbers include local water supply agents,
DTW of other agencies 1330 numbers DWASA officials, local DWASA agents,
Overhead tank in operation 38 numbers local residents, local power elites and
Water treatment plant 4 numbers. middlemen; NGOs and legal connection
Strom water drainage 185 km holders in the study area.
Strom water pumping station 3 numbers
Religious institutions 1898 numbers
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 18
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
Secondary data has been obtained from surveyed. Figure 2 illustrates the locations of
government agencies, published articles, these slums. The detail of each slum is
research papers and various databases. provided in the later part of the paper.
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 19
Affordable Water Pricing Rahaman and Ahmed
In Korail slum, a total of 50 people from 46 understanding of the situation. Table 5 shows
houses were interviewed. Four group an overview of water supply situation in
discussions were organized to get better Korail slum (Figure 3).
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 20
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
Average Family Size in Korail Slum observed that people do not stay longer period
It is observed that 48% respondent of Korail of time in this slum because of the
slum have three to five members in their government’s eviction attempts and hazardous
family. 30% have two to three members and life in the slum.
22% have five to eight members (Figure 4).
Average Monthly Income of the Respondents
Length of Residency of the Respondents in in Korail Slum
Korail Slum It is observed that among 50 respondents, 16%
Among the respondents, 12% have been earn more than 7000 Bangladeshi Taka (BDT),
residing in this slum for 0–1 year, 26% have 10% earn 3000–4000 BDT, 14% earn 4000–
been residing for 1–3 years, 42% have been 5000 BDT, 22% earn 5000–6000 BDT and
residing for 3–5 years and only 12% have been 38% earn 6000–7000 BDT (Figure 6).
residing more than 5 years (Figure 5). It is
22%
30%
48%
12%
42%
20%
26%
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 21
Affordable Water Pricing Rahaman and Ahmed
10%
16%
3000-4000
14%
4000-5000
5000-6000
6000-7000
Fig. 6: Average Monthly Income of the Korail Slum’s Respondents in BDT [26].
Water Pricing in Korail Slum than the current water price of DWASA.
At present, Korail slum dwellers are paying 14 Table 6 shows the existing price for 1000 l of
times more than legal connections holders of water in Korail slum. Figure 7 and Table 7
DWASA (Tables 6 and 7 and Figure 7). For show comparative scenario of water pricing
secure water supply, all the respondents of between DWASA connections holders and
Korail slum are willing to pay 3.4 times more Korail slum dwellers.
7.33
DWASA connection
holders
0 20 40 60 80 100 120
Fig. 7: Water Price per 1000 l in Korail Slum and DWASA Covered Area (in BDT) [26].
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 22
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
Table 7: Comparative Scenario of Water Pricing in DWASA and Korail Slum [26].
How Many Times
Water Price Water Price per Water Price Slum How Many Times
Slum Dwellers
per 1000 l 1000 Liters for Dwellers are Ready than DWASA Rate
Currently Pay Compare
in Korail DWASA Connections to Pay for Slum Dwellers are
to DWASA Connections
Slum Holders 1000 Liters Ready to Pay
Holders
100 taka 7.33 taka 25 taka 14 times 3.4 times
5 to 8 member 2 to 3 member
27% 24%
3 to 5 member
49%
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Affordable Water Pricing Rahaman and Ahmed
than 5 years (Figure 10). It is observed that, Figure 11). For secure water supply, all the
like Korail slum, people do not stay longer respondents of Godown slum are willing to
period of time in Godown slum because of the pay 3.4 times more than the current water
government eviction attempts and hazardous price of DWASA. Table 9 shows the existing
life. price for 1000 l of water in Godown slum.
Table 10 and Figure 11 show comparative
Water Pricing in Godown Slum scenario of water pricing between DWASA
At present, Godown slum dwellers are paying connections holders and Godown slum
seven times more than legal connections dwellers.
holders of DWASA (Tables 9 and 10, and
14% 10%
16%
32%
28%
Fig. 9: Average Monthly Income of the Godown Slum’s Respondents in BDT [26].
13%
30%
25%
32%
Fig. 10: Length of Residency of the Respondents in Godown Slum, Dhaka [26].
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 24
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
Godown
slum 50
dwellers
DWASA
connection 7.33
holders
0 10 20 30 40 50 60
Fig. 11: Water Price per 1000 l in Godown Slum and DWASA Covered Area (in BDT) [26].
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 25
Affordable Water Pricing Rahaman and Ahmed
Average Family Size in Tejgaon Slum family. 26% have two to three members and
It is observed that 54% respondents of Tejgaon 20% have five to eight members (Figure 13).
slum have three to five members in their
5 to 8 member
20% 2 to 3 member
26%
3 to 5 member
54%
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 26
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
11%
13%
51%
25%
Fig. 14: Length of Residency of the Respondents in Tejgaon Slum, Dhaka [26].
6% 8%
10%
24%
52%
Fig. 15: Average Monthly Income of the Tejgaon Slum’s Respondents in BDT [26].
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 27
Affordable Water Pricing Rahaman and Ahmed
Table 13: Comparative Scenario of Water Pricing in DWASA and Tejgaon Slum [26].
How Many Times
Water Price Water Price per Water Price Slum How Many Times
Slum Dwellers
per 1000 Liters 1000 Liters for Dwellers are Ready than DWASA Rate
Currently Pay Compare
in Godown DWASA Connections to Pay for Slum Dwellers are
to DWASA Connections
Slum Holders 1000 Liters Ready to Pay
Holders
50 taka 7.33 taka 25 taka 7 times 3.4 times
Tejgaon slum
50
dwellers
DWASA
connection 7.33
holders
0 10 20 30 40 50 60
Fig. 16: Water Price per 1000 l in Tejgaon Slum and DWASA Covered Area (in BDT) [26].
Combined Water Pricing Scenario of the Water Pricing Comparison with Other Cities
Study Area From the Table 14, it is observed that slum
This study reveals that respondents of Tejgaon dwellers of the study area are paying higher
and Godown slums are currently paying about price for water than most of the countries. It is
7 times higher than DWASA rate and also observed that even though they are paying
respondents of Korail slum are paying such a high amount of money for water in
14 times higher than DWASA rate comparison with legal connection holders in
(Figure 17). For receiving secure water supply, many countries, they are not getting the water
100% respondents in all three slums are according to their requirement both in terms of
willing to pay 3.4 times more than the current quantity and quality. Figure 18 shows
water price of DWASA. variation of water pricing in different cities
around the world and in the Korail, Tejgaon
and Godown slums in DMA.
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 28
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
Table 14: Water Price Comparison between Different Countries [26, 28].
Water Price per 1000 Liters in Water Price per
Name of Country Name of City
USDi 1000 Liters in BDT
Austria Linz 1.54 120.48
Austria Vienna 1.80 140.47
Bangladesh DWASA 0.09 7.0281
Belgium Brussels 2.11 165.15
Belgium Liege 3.40 265.7
Denmark Esbjerg 2.80 219
Denmark Copenhagen 3.83 298.75
Finland Helsinki 1.07 83.334
Finland Turku 1.96 152.96
France Paris 1.66 129.46
France Bordeaux 2.33 182.16
Germany Country Average 2.55 199.13
Great Britain London 2.03 158.86
Great Britain Cardiff 2.46 192.34
Hungary Budapest 1.23 95.965
Hungary Pécs 2.04 159.52
Italy Rome 0.59 46.034
Italy Bologna 1.08 84.689
Japan Osaka 1.03 80.46
Japan Tokyo 1.37665 107.5
Korea Seoul 0.4413 34.461
Korea Busan 0.5485 42.832
Nederland Amsterdam 2.10105 164.07
Nederland Den Haag 2.06715 161.42
Norway Oslo 1.36765 106.8
Norway Bergen 2.03085 158.59
Poland Radom 0.8846 69.078
Poland Bydgoszcz 1.24475 97.203
Portugal Lisbon 1.0008 78.152
Portugal Porto 2.37355 185.35
Slovakia Bratislava 1.1857 92.591
Slovakia Kosice 1.67145 130.52
Spain Madrid 1.14 89.374
Spain Barcelona 1.65 128.47
Sweden Stockholm 1.38825 108.41
Sweden Linkoping 2.0866 162.94
Switzerland Geneva 2.41 188.32
Switzerland Zurich 2.66 207.99
USA Chicago 0.5297 41.364
USA New York 1.56045 121.86
Selected slums in DMA Korail 1.282 100.11
Tejgaon 0.641 50.056
Godown 0.641 50.056
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 29
Affordable Water Pricing Rahaman and Ahmed
250
200
150
100
50
0
Fig. 18: Water Price Comparison in between Different Cities and Selected DMA Slums [28].
Income versus Expense for Water not get DWASA services. It is also observed
Table 15 and Figure 19 show that the slum that slum dwellers of Dhaka metropolitan area
dwellers in the selected slums are paying about are paying higher percentage of their income
12 to 15% of their average income whereas in comparison to that of Dhaka city dwellers
DWASA’s legal connection holders of with legal connection from DWASA and even
respective area are paying only 5% of their more than the residents of Canada and
income for water. Still the slum dwellers do Australia.
Table 15: Total Water Bill as % of Total Annual Income in Selected Countries and
Selected Slums [26, 29].
Water Price per 1000 Average Water Average Income Total Water Bill as % of
Country
Liters in USD Bill ($/year) ($/year) Total Income
Australia .957 336.74 54453 0.62
Canada 1.3112 494.68 67081 0.74
Czech Republic 2.1456 341.2 17891 1.91
France 4.2912 511.07 50682 1.01
Italy 1.3857 402.3 44722 .90
Korea 0.536 172.84 37944 .46
Mexico 0.4619 154.96 10973 1.42
Netherland 2.8757 342.7 45799 0.75
Norway 2.5628 473.82 95075 0.50
Sweden 3.5015 587.06 59693 0.98
Bangladesh
0.093 45.685 957.8 4.7ii
(Dhaka)
Korail Slum 1.28 129 846 15.30
Godown Slum 0.64 110 846 13.00
Tejgaon Slum 0.64 110 923 11.90
i
All prices are excluding sewerage charge.
ii
Average monthly water bill 3.807 USD (DWASA, 2015). Average income (USD/year)= 957.8 (world bank, 2014). Total
water bill as % of total income=(45.985/957.8)= 4.7%.
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 30
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
15.3
13
11.9
4.7
1.91 1.42
0.62 0.74 1.01 0.9 0.46 0.75 0.5 0.98
Fig. 19: Percentage of Total Income Paid for Water Services in Different Countries and Selected
Slums [26, 29].
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Affordable Water Pricing Rahaman and Ahmed
JoWREM (2016) 15-33 © STM Journals 2016. All Rights Reserved Page 32
Journal of Water Resource Engineering and Management
Volume 3, Issue 1
ISSN: 2349-4336(online)
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