TAIPEI (Taiwan News) — Taiwan Water Corp. reported a loss of approximately NT$2.4 billion (US$73.9 million) between January and June, with total losses projected to reach NT$5.9 billion by the end of the year as financial pressure continues to mount.
The company has continued investing in tap water infrastructure projects, with total borrowing exceeding NT$100 billion. It faces substantial annual interest payments, and its liabilities account for 47.71% of its total assets, per CNA.
Last year, the company recorded a loss of NT$4.2 billion. In March, it submitted a proposal to the Ministry of Economic Affairs to raise water rates to offset part of its losses. The company added that it loses NT$2.45 for every cubic meter of water sold.
Taiwan Water Corp. began an eight-year, NT$80.8 billion pipeline leakage reduction project this year. Over the first four years, the government will contribute NT$8 billion, while the remaining NT$72.8 billion will be funded by the company.
The project features AI-powered water management and leak reduction strategies, including the use of big data to analyze high-leakage zones, the creation of a cloud-based leakage database, and the replacement of aging pipelines. A total of 5,681 kilometers of pipeline will be replaced.
Upon completion, Taiwan’s overall pipeline leakage rate is expected to drop from 11.99% last year to 9.77% by 2032—equivalent to saving the annual storage capacity of about 1.17 large reservoirs.
The company emphasized that rising equipment depreciation and replacement costs, increasing loan interest payments, Taipower’s planned electricity rate hike, and the ongoing leakage reduction project will all drive up water supply costs, making operations even more challenging.
It added that it has also reviewed and improved its water outage response following Typhoon Danas, focusing on maintaining uninterrupted power supply to major booster stations during typhoons. For smaller roadside stations, it plans to deploy water trucks and portable containers to help manage supplies during storm-related outages.
