SURUHANJAYA PERKHIDMATAN AIR NEGARA - …

1 SURUHANJAYA PERKHIDMATAN AIR SURUHANJAYA PERKHIDMATAN AIR NEGARANEGARA(National Water Service Commissions)(National Water Service Commissions)National Policy Objectives for Water National Policy Objectives for Water and Sewerage Servicesand Sewerage ServicesggSPAN s rolesSPAN s rolesIssues and impactIssues and impactIssues and impactIssues and impactSPAN s responsibilitySPAN s responsibilityWay forwardWay forwardWhere Does SPAN Stands?Where Does SPAN Stands?Where Does SPAN Stands?Where Does SPAN Stands?ORGANIZATIONRESPONSIBILITYDESCRIP TIONM inistry of Energy~ Policy SettingIssue policy on water and sewerageMinistry of Energy Water and Communications~ Policy SettingIssue policy on water and sewerage supplyState Government~ Issues related to raw Regulate raw water intakeandwateradminister water catchment areaNational Water Resource Council (NWRC)~ Issues related to raw waterEnsure coordination with state governments on the water basin management(NWRC)~ Cross boundary between states and national interestmanagementSuruhanjayaPerkhidmata nAir~ Regulate and enforcementRegulate water services industry:PerkhidmatanAir NEGARA (SPAN )enforcementServices of waterServices of wastewaterRegulate Whom?

2 Regulate Whom?ggPrivate Water Public Water OperatorsOperatorsPrivate Sewerage Operators 20 nosRegulated By Public SewerageSewerage 3,000 nos. 20 OperatorsgContractors 1,409 nos. IWK, PBT Kelantan, PBT Pasir Gudang + MBJBW ater ContractorsSuppliersPlumbers 4,500 2,235 CIDB Reg. 2,953 PKK Reg. 300 nos (Sewerage Products)Regulate What?Regulate What?ggEiTechnicalEconomic RegulatoryTechnical RegulatorySPANC onsumer ProtectionSocial AspectRegulate How?Regulate How?ggThe new regulatory regime is aimed to ensure Quality Output:QUALITYOUTPUTQUALITYPEOPLEQUALITY ++QUALITYOPERATION &OUTPUT(INFRASTRUCTURE)PEOPLE +PROCESSQUALITYINPUT++OPERATION &MAINTENANCE=Quality Materials ProductsSkilled & Competent Contractors PlumbersStandard & ProvenQuality & Reliable Infrastructure /FacilitiesEfficient Operation Facilities Management and Standard & Proven Specification Procedures Best PracticesMaintenancePrevious Water Regulatory Regime Previous Water Regulatory Regime In MalaysiaIn MalaysiaJKASSATUyyABASSSATUJBATAKSBESBJA KSAJHESBSWCJBAPPSAJHJBAPPBAKAJBKAMNew Water Regulatory RegimeNew Water Regulatory Regime One regulatory body Uniform legislation, regulation and rules Uniform tariff-setting principles and ABASSSATU ppprocedures Standard KPIs Standard OperatingABASSESBSWC Standard Operating Procedures Standard product fdSAJH certification proceduresSPANWhat Are The Potential Environment What Are The Potential Environment Impacts From Sewerage Activities ?

3 Impacts From Sewerage Activities ?Impacts From Sewerage Activities ?Impacts From Sewerage Activities ?effluent from treatment plants sludge disposalhealth and safetynoise from plantsodourvisual and aestheticsbufferWhat Are The Sources Of What Are The Sources Of Sewage Pollution?Sewage Pollution? Effluent from public STPsSewage Pollution?Sewage Pollution?Effluent from public STPs Effluent from private STPs Effluent from Individual Septic Tanks Effluent from Individual Septic Tanks Biosolid generated from sewage Sullage (from households) Sullage (from households) Discharge of raw sewage(squatters) Sewage from primitive systems Sewage from primitive systems Wet markets/Eateries Type of Sewerage ServiceType of Sewerage ServicePRIVATE STPSERVICESOVERALL COVERAGE VS NON COVERAGEISTPOUR FLUSHUNIDENTIEDTOTAL PECONNECTED SERVICEPUBLIC PLANTCSTNOPENOPENOPENOPENOPEPEPE%5,06116 ,313,40700000000016,313, SERVED002 994989 3873 636432 091991 2794 533 858760 6102 958 48508 913 82131 1%NOT SERVEDPRIVATE STPSERVICESIWKPUBLIC PLANTUBLIC002,994989,3873,636432,091991, 2794,533,858760,6102,958,48508,913, SERVEDNANA11739,461 NANANANANANA1,177,7471,217, ,602 NANA4,941141,8855,352179,00099,283458, ,595 NANA1,0005,0004002,000037, ,621 NANA7003,5002001,00043,85989, PASIR GUDANGNON IWKPRIVATE0055202,250 NANA2,50012,5004002,000145,383362, JOHOR BAHRU00429,395 NANA56,439193,00573,508328,790696,9811,2 48, 06116 313 4073 1941 371 3113 636432 0911 056 8594 889 748840 4703 471 2752 163 25328 641 085100 TOTAL5,06116,313,4073,1941,371,3113,6364 32.

4 0911,056,8594,889,748840,4703,471,2752,1 63,25328,641,085100 Effluent Non Compliance FactorCAPEX Investment On Sewerage CAPEX Investment On Sewerage Development To DateDevelopment To DateDevelopment To DateDevelopment To Date3,4683,5004,000 GovernmentIW K/MoFTotal2127 ,7382,5003,000 ESTEDON) ,7271,2631,5002,000 MOUNT INVE(RM MILLIO5545916116396347093604418051845487 84503845001,000A554445184544063840200020 01200220032004200520062007 YEARO ther investment includes the on going JBIC funded projects which cost RM 1. 98 billion where Phase 1 is bil (completed) and Phase 2&3 (ongoing) is RM898 mil Growing Numbers of Public Sewage Treatment Plants6,0001618Nu mb e r o f p la n t sAverage growth Average growth 300 STPs/year300 STPs/year4,0005,0001214million)Popula t ion Equiv a le ntserved/y/y3,000,000ber of plants810 Equivalent (m2,000 Numb468 Population E1,0002401998199920002001200220032004200 520062007 Year0 Pollution Loadings of Various Pollution Loadings of Various SStSStSewerage SystemsSewerage Systems833900250833700800200IT AL OP412447500600150ng (kg/day)ng (kg/day)

5 OP EA SBR IST-Y1 to Y3239412186300400100 Mass LoadinMass LoadinCST 7419014383912962756200727188081995461050 18655331002005090383996560088089956000 BOD COD Oil & Grease Ammonia ParameterSg Langat Simulated Results for )PresentTargetScenario4 Scenario5 WHO RequirementsScenario 1 Scenario2 Scenario Conc (mg/Scenario5 Scenario7 Request by Water OperatorScenario 2 Scenario Load to meet Class II1049484746454443424144 Upstream<----Distance (km)--->DownstreamSg LuiSg TekaliSg SekamatSg SemenyihSg Btg LabuSg Sedu1 : All plants meet except for CST&IT meet plus load from all pollution sources2: As above but sullage, IST, pour flush and private plants connectedSg LuiSg TekaliSg SekamatSg SemenyihSg tg abug3: Total load from all pollution sources and all plants in Std A and 20% in Std B meet Cat 1 and CST, IT meet Cat 3 Risk Resolution - Revenue Impact for Year 2008900893500600700800576illion200300400 500RM in m0100 OPEX 2008 OPEX 2008 (with Risk Resolution) In order for IWK to cover its 2008 operating expenditure (excluding GSL interest and a portion of asset depreciation) as denoted by the blue dotted line, existing revenue needs to increase by approximately 103%, the existing rate will now be If IWK were to address the risk associated with the DOE effluent standards, the total OPEX will become RM1 1 billion.

6 To cover the OPEX cost (excluding the GSL interest and a portion of the asset depreciation) as denoted by the green dotted lines, existing revenue will need to increase by approximately 208%, the existing rate will now be Regulate?Why Regulate?ygyg Full cost recovery for operators Operate without government subsidySustainable Operate without government subsidy Long term benefits compared to short term fire fighting approachSustainable Reasonable tariff structure for consumer Achievable infrastructure budgetsAffordableAchievable infrastructure budgets Consistent service Meeting standards set by DOER eliableVision and Mission StatementVision and Mission StatementVision and Mission StatementVision and Mission StatementWay ForwardWay Forwardyy Achieving Holistic Water Services ~ Integration Achieving Holistic Water Services ~ Integration Implementation ChallengesImplementation ChallengesImplementation ChallengesImplementation Challenges Joint Billing ChallengesJoint Billing ChallengesStibl dBl dD ltfStibl dBl dD ltf Sustainable and Balanced Development of Sustainable and Balanced Development of Sewerage ServicesSewerage Services Institutional

7 FrameworkInstitutional Framework Institutional FrameworkInstitutional Framework Economics and Financing ChallengesEconomics and Financing ChallengesRlt Miti dEftRlt Miti dEft Regulatory, Monitoring and EnforcementRegulatory, Monitoring and Enforcement Technical, Operations, Environment and HealthTechnical, Operations, Environment and HealthTERIMATERIMATERIMA TERIMA KASIHKASIHKASIH KASIH