Taiwan Water battles losses as it reports a NT$2.4 billion deficit in the first half of 2025. The state-run utility expects its total losses to reach NT$5.9 billion by the end of the year. Despite these setbacks, the company continues to invest heavily in water infrastructure upgrades.
The company has borrowed over NT$100 billion to fund various long-term projects. As a result, annual interest payments have ballooned. These interest costs now weigh heavily on its already strained budget. In addition, the company’s liabilities now account for 47.71% of its total assets.
Last year, Taiwan Water recorded a NT$4.2 billion loss. In March 2025, it submitted a proposal to raise water rates. The proposal aimed to reduce losses from operating below cost. Currently, the company loses NT$2.45 for every cubic meter of water it sells. To improve system efficiency, Taiwan Water launched an NT$80.8 billion leakage reduction project.
This eight-year project aims to overhaul the aging pipeline system across the island. Over the first four years, the government will provide NT$8 billion in support. The company will cover the remaining NT$72.8 billion through internal funds and loans.
The leakage reduction effort uses AI-powered monitoring and big data analytics. Taiwan Water created a cloud-based system to track leak-prone zones. It also plans to replace 5,681 kilometers of old pipelines. By 2032, the leakage rate should drop from 11.99% to 9.77%. That improvement equals saving the storage of one large reservoir every year.
However, Taiwan Water battles losses even as costs keep rising. Equipment depreciation and interest payments continue to escalate. An expected electricity rate hike from Taipower will further raise operating expenses. These combined pressures challenge the company’s ability to sustain water supply operations.
Typhoon Danas prompted new emergency response improvements. Taiwan Water now ensures power continuity at major booster stations. It also deploys water trucks and portable containers at smaller locations. These updates aim to prevent widespread outages during future storms. Taiwan Water battles losses while pushing forward with vital infrastructure upgrades. Yet rising costs, loan pressure, and outdated pipelines keep financial recovery out of reach.
