<P> As of January 1, 2015, UAE citizens pay 1.7 Dirham (0.46 USD) per cubic meter of water for a very generous first block of consumption, which is set at 700 liters per day for apartments and 7,000 liters per day for villas . Above these amounts, the tariff increases slightly to 1.89 Dirham (0.51 USD) per cubic meter . Previously, water was free of charge for UAE citizens . Foreign residents and commercial users were always charged for water, starting at 5.95 Dirham (USD 1.61) per cubic meter in the lowest consumption block . The introduction of water tariffs for residents aims at reducing subsidies, encourage the efficient use of water and raise awareness of the importance of reducing consumption . It was combined with a large public relations campaign, as well as advice for customers who want to save water . Even before the change in tariff, bills highlighted water usage beyond a certain level in red and showed the subsidy paid by the state . </P> <P> The two public distribution companies receive a government subsidy . In turn, they pay a bulk supply tariff reflecting the full economic cost to ADWEC, which in turn pays for the water received from the private IWPPs under Water and Power Purchase Agreements . Bulk supply tariffs are adjusted by the RSB every four years based on maximum allowable revenues . </P> <P> Investment in desalination plants is financed by the private sector through BOO contracts . Investment in water distribution and sewerage infrastructure is financed by the government through subsidies to the respective public companies . Investment in both power and water production and distribution was more than US $36 billion from 1999 to 2008 . Since power and water are produced and distributed by the same companies, separate figures for investment in water infrastructure are not available . </P>

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