Dong Thap province authorities in the Mekong Delta will now offer incentives to encourage investment in rural clean water supply projects.

Under a new preferential policy, clean water supply project investors will be allocated land for projects in rural areas. Along with free rent and credit loans, such investors will also enjoy corporate income tax reduction and exemptions.

The preferential policy aims to encourage enough growth in the water supply sector to provide clean water for 85 percent of rural households in the province by 2010.

This would curb water shortage during the annual dry season.

In line with the plan, private investors in clean water projects using State-funds must refund construction costs once the project is successfully operational in order for provincial authorities to reinvest into other projects in disadvantaged areas.

Those investing in 100 percent privately funded clean water supply projects will now receive project ownership certificates as well as enjoy corporate income tax reductions and exemptions.

Investors who contribute capital to water supply projects in the form of patents, technology and technical services are also entitled to corporate income tax exemptions.

Source: VNA