New Development and Challenges in Malaysian Drinking Water Supply

New Development and Challenges in Malaysian Drinking Water Supply

Md. Pauzi Abdullah Md. Pauzi Abdullah Centre for Water Research and Analysis,

Faculty of Science and Technology, Universiti Kebangsaan Malaysia, 43600

UKM Bangi, Selangor Darul Ehsan, Malaysia.

INTRODUCTIONINTRODUCTION

MalaysiaMalaysia

~ a land of great diversity• Population: 26 million with various races and ethnic origins, mix different cultures, traditions and religions.

Climate: ~ a tropical country characterised by marked wet and dry seasons.

• ~ affected by the northeast and southwest winds.

• ~ predominant annual monsoon period (October to January).

• ~ average temperature 21C to 32C with a relatively high humidity ranging from 80% to 90%.

Global Perpective

• 2005 to 2015 is the International Decade for action, “Water for Life”, drawing world’s attention to the importance of water and water-related issues.

• WHO estimates that in 2002, 1.1 billion people (17 % of global population) did not have access to improved water resources.

• 88 % of diarrhoeal diseases can be attributed to unsafe water supply. Most of the deaths are in developing countries and 90 % are children under 5 years old (WHO 2004).

Water-Borne diseases in Malaysia

• 2600 cases of gastroenteritis in Seremban (1982)• 81 cases of infectious hepatitis in Raub (1987)• 940 cases of infectious hepatitis in Kota Belud (1988)• 300 cases of typoid fever in Johor Bahru (1990)• 1278 cases of cholera in Penang (May 1996)

(Engineering Services Division, Ministry of Health, Malaysia)

The first formal arrangement for a water supply system in Malaysia began in Penang (1804) when the population was about 10,000 people.

~ Clear stream water from the hills was conveyed along a brickwork channel to the town where earthen pipes were laid through the streets and tin pipes conducted water to the houses.

History of water supply developmentHistory of water supply development

Early 20th century, many parts of the country were rural in nature and these areas obtained their water in the traditional way

~ rivers, individual wells, lakes and rain water collected from roofs of houses.

Rain Water Collection System

Water Well with Hand Pump Water Well with Hand Pump SystemSystem

During the early part of the 20th century, a water installations method was introduced following international movement in developed nations

~ require all potable water to be filtered generally using slow sand filters.

By 1915, the technology of disinfection of water, first with hypochlorites and later with gaseous chlorine was developed for use.

~ Disinfection of water: contagious diseases like cholera were caused by sewerage contaminations of water

sources notably rivers and wells.

Rapid gravity filtration plants were only introduced in the country in the 1930s by which time nearly all-major towns in the country had treated water supply.

Expansion of water supply systems was interrupted during the war years between 1941-1945 when the existing water supply installations deteriorated because little attention was given to them.

By 1950 there were 100 treatment works producing 195 million litres per day (MLD) for a population of 1.15 million in

Peninsular Malaysia. ~ water supply coverage of about 23% mainly in urban areas.

The emergence of Malaya (later known as Peninsular Malaysia), independence in 1957, provided an opportunity for thorough revision of policy in the water sector.

Water supply development began to pick up in a fast tempo

~ the primary objective is to produce treated water of the right quality available to as many people as possible in the shortest possible time.

Rural water supply, however, was somewhat neglected until sometime during the Third Malaysia Plan (1976-1980).

~ water supply development was largely dictated by the consideration of economic viability.

~ only the more viable water projects in urban areas with a heavy concentration of population met this criterion.

By the mid 1980s, the demand for water was beginning to shift towards the need of growing industrial economy.

~ industrial water demand had become a substantial portion of total demand in major growth areas.

~ The growth areas had not however coincided with the availability of water.

.

Since the 1990s, a number of water projects implemented had graduated to become mega projects in terms of both cost and size comparable to transportation, communication and energy schemes

WATER RESOURCES IN MALAYSIAWATER RESOURCES IN MALAYSIA

In Malaysia, water resources are State matters under the Federal Constitution and policies on management, regulation and development fall under the jurisdiction of the states.

~Various Federal and State agencies are responsible for water resources development and management – mainly water supply, irrigation and hydropower generation.

In Peninsular Malaysia, the total water In Peninsular Malaysia, the total water resources are dominated by the amount of resources are dominated by the amount of water that flows in surface streams after water that flows in surface streams after

rainfall. rainfall.

The source of all water is rainfall, with heavy rainfall during the monsoon seasons

~ southwest monsoon in April to May~ northeast monsoon in Nov. to January~ inter-monsoon periods in which occurs

largely from thunderstorm activity.

The average annual rainfall:~ 2400 mm in Peninsular Malaysia ~ 2360 mm Sabah & 3830 mm Sarawak

WATER RESOURCES IN MALAYSIAWATER RESOURCES IN MALAYSIA

Source of WaterSource of Water

(rainfall: 990 billion m3 yearly)

surface runoff 566 billion m3

groundwater recharge 64 billion m3

atmosphere (evapo-transpiration)

Peninsular Malaysia 147 billion m3

Sarawak 306 billion m3

Sabah 113 billion m3

Sarawak 306 billion m3

WATER RESOURCES IN MALAYSIAWATER RESOURCES IN MALAYSIA

• The use of surface water resources in Malaysia to meet water demand requires

~ the storage of water in times of excess capacity, for release in times when natural surface flows are inadequate.

• In some states, groundwater resources have been developed to meet the needs of smaller communities and isolated industries; generally those without access to piped supplies from surface sources.

~ Kelantan (groundwater as water supply entities, 37,575,736.00 m3 per year).

• The potential of groundwater in addressing the problems of future water shortage is significant.

WATER QUALITY MONITORINGWATER QUALITY MONITORING

Monitoring of river water quality in Malaysia by the Department of Environment (DOE) started in 1978, initially to establish water quality baseline and subsequently to detect water quality changes and identify pollution sources.

River water quality appraisal is based on the Water Quality Index (WQI)

~ Dissolved Oxygen (DO) ~ Biochemical Oxygen Demand (BOD)

~ Chemical Oxygen Demand (COD) ~ Ammoniacal Nitrogen (AN)

~ Suspended Solids (SS) ~ pH

WQI = 0.22(SIDO) + 0.19(SIBOD) + 0.16(SICOD) + 0.15(SIAN) + 0.16(SISS) +

0.12(SIpH)

The WQI serves as a basis for environmental assessment of a watercourse in relation to pollution categorization and designated classes of beneficial uses

~ under the Interim National Water Quality Standards for Malaysia (INWQS).

In 2001, a total of 931 manual water quality-monitoring stations located within 120 river basins were monitored.

~ 489 stations (53%) were found to be clean~ 303 stations (33%) slightly polluted ~ 139 stations (15%) polluted.

Stations located upstream were generally clean, while those downstream were either slightly polluted or polluted.

In terms of water quality on the basis of river basins~ 60 basins (50%) were clean compared to 34

basins in 2000~ 47 (39%) slightly polluted compared to 74 in 2000~ 13 (11%) polluted compared to 12 in 2000.

Major pollution sources~ 18% of river basins were polluted by biochemical oxygen demand (BOD) due to sewage and

discharges from agro-based and manufacturing industries.

~ 20% of river basins were polluted by ammoniacal nitrogen (NH3-N) from sewage that included livestock farming and domestic

sewage. ~ 33% by suspended solids (SS) due to earthworks and land-clearing activities.

Samples taken from industrial areas were found to have more parameters exceeding the acceptable benchmark values.

As for VOC, the arithmetic mean is 12 g/l but all the concentration did not in any case exceed the guidelines set.

Since independence, the jurisdictions and legislative powers in all aspects of water are distributed between the Federal Governments in accordance with the Legislative Lists of the Federal Constitution.

Federal List: hydropower; navigation, maritime fisheries, estuarine fisheries, federal works and power including water supplies, rivers and canals except those wholly within one state or regulated by an agreement between the States concerns.

Water resources protection & pollution control Water resources protection & pollution control legislationlegislation

State List: rivers, riverine fisheries and water (including water supplies, rivers and canals if they are wholly within one state or regulated by an agreement among the States concerned), control of silt and riparian rights.

These enactments empower the State Water Supply Authorities (SWSA) to supply water to domestic and trade consumers

~ to lay mains and distribution pipes across or under any street

~ through or under any enclosed land making reasonable compensation for any damage done.

For states where the water supply departments had been privatised

~ the state enactments provide for the establishment of water supply regulatory bodies to regulate and enforce the provisions of the enactments to ensure the state governments’ as well the consumers’ interests are safeguarded.

WATER ISSUES & PROBLEMSWATER ISSUES & PROBLEMS

1. 1. DroughtDrought

• The cause of drought ~ lack of precipitation

~ high temperature~ high wind

~ low relative humidity

• Drought begins when you get 75% of your average precipitation over a specific time period.

• Even when the country’s climate is relatively “wet”, you still get drought by deforestation, land degradation and the construction of dams.

• The Klang Valley had a rather quick recovery period in the last “prolonged” drought of 1998.

• Drought can threatens public health and safety ~ if we continue to have bone-dry days with no reduction in demand.

• There is a need to conserve over the long term to prepare for the uncertainty.

2. Pipe failures2. Pipe failures

Malaysia’s non-revenue water is currently 39%.~ 26% lost through damaged water pipes

~ 6% through inaccurate meter reading~ 5% was stolen ~ 2% was due to other reasons.

Under the 7th Malaysia Plan, RM499.5 million was spent for this.

~ In 24 districts, water pipes totalling 2,648 km were changed and water tank capacities were increased.

• For the 8th Malaysia Plan, RM215 million has been allocated

~ estimated that about RM9.5 billion is needed to change old water pipes nationwide.

• Pipe failures are an increasing problem as pipelines age and reach critical levels of predictable.

3. Water Resources Quality Issues3. Water Resources Quality Issues

• The effect of urbanisation and the resultant increase in population and activities associated with urban life normally change the quality of runoff within a catchment and its receiving waters.

• Sedimentation and siltation of rivers from land development & clearing will continue to degrade water quality and affect the discharge capacity of the natural channel.

• Rainfall washes contaminants from the atmosphere and the resultant runoff washes material accumulated on surfaces into the stormwater system whereby they are transported to receiving waters.

• If this trend persists, then the costs to rehabilitate the river and the cost for water treatment facilities for water supply will require higher investments.

• The major storm water related physico-chemical stressors are identified as:

~ Significant increases in peak discharge and frequency, impacting on ecology and geomorphology of waterways

~ Sediment and suspended solids impacting on aquatic plants and benthic biota

~ Oxygen demanding substances impacting on dissolved oxygen (aquatic animals) and sediment redox processes (water quality)

~ Nutrients impacting on primary production and nuisance algae

~ Toxicants (heavy metals, pesticides, ammonia) impacting on aquatic biota

~ bacteria impacting on recreation and water supply suitability

~ trash and debris impacting on visual quality of waterways.

4. Regulation & Legislation issues4. Regulation & Legislation issues

• The concept of regulation is that the Regulator shall be independent from all those with interests in the water industry.

• Some of the issues are:~ Standardised water supply regulations and by-laws for the water industry particularly for the construction and plumbing industry.~ Harmonise tariff and levy policy~ Policy on water using appliance and water saving device.~ Policy on loss/leakage management.~ Public communication and awareness creation, particularly in schools.

• The lack of effective legislation, institutional arrangements and human resources for the monitoring and control of pollution and the absence of effective cost-recovery systems at the local or national level

~ to meet the costs of treatment ~ protection of water sources~ cleaning up polluted water and other

essential measures

The need to establish a process of open and transparent consultation in discussing water resource issues through increased communication between government agencies, and public participation and education, are major issues for the protection of water resources and drinking water quality supply.

NEW DEVELOPMENT & CHALLENGES NEW DEVELOPMENT & CHALLENGES • Malaysia has not only seen coverage of treated water

supply to nearly all population in Peninsular Malaysia but also the preparation of a long term plan for future development in water supply to the year 2050 ~by which time the total treated water demand is expected to increase by nearly four folds.

• Adequate measures are allowed for the plan to ensure sufficiency of water during this period.

• The water industry nevertheless needs to face many more challenges in the future particularly so in the globalisation age and these include participation of industry players in their areas of coverage.

~ The creation of a common national water sector policy by the authorities, with the principles of:

- integrated development

- equitable regional allocation of development resources

- environmental integrity - uniform water regulation and by-laws - economic value of water - uniform or harmonised water tariff

- central regulatory function for local water bodies.

~ Improvement in water demand and quality management by the providers and operators.

~ Confidence in investments by private sector entrepreneurs in water supply sector projects for privatised schemes.

~ Skill in local contractors to handle and complete mega water supply projects to world class standard.

~ Ability of local manufacturers for the production of plants and equipment, chemicals and other water supply items to international standards for use in the water industry.

~ Water consumers should also be concerned with water wastage in a water supply undertaking.

• The total planning demand for domestic and industrial water supply, and irrigation, for Peninsular Malaysia

10,833 million m3 in 2000 17,675 million m3 in 2050 (an increase of about 63%).

STRATEGIESSTRATEGIES

1. Meeting future water demand1. Meeting future water demand

• Regulation of water resources by some form of storage will undoubtedly ensure reliability of meeting future water supply demands.

• Pahang-Selangor raw water transfer project. ~ designed to transfer 2260 MLD of raw water by means of pipeline and tunnel from Pahang to Selangor.

~ major components: water transfer tunnel, intake and pumping station, pipelines and a dam. ~ transfer tunnel is 44.6 km long with a diameter of 5.2 m

~ pipelines are 11.8 km two-lanes with diameter of 3.0 m

~ Kelau Dam has an effective storage of 287 million m3 and a crest length of 420 m.

Demand* 1998 2000 2010 2020 2030 2040 2050

Domestic Million m3/yr

1,833 2,209 2,987 3,862 4,606 5,251 5,904

MLD 5,022 5,558 8,184 10,582 12,622 14,388 16,176

Industrial Million m3/yr

1,260 1,454 2,592 3,561 4,330 5,016 5,639

MLD 3,453 3,985 7,101 9,756 11,863 13,743 15,452

Domestic and

Industrial

Million m3/yr

3,093 3,483 5,578 7,423 8,936 10,267 11,543

MLD 8,475 9,543 15,285 20,338 24,485 28,131 31,628

Irrigation Million m3/yr

7,350 7,350 6,517 6,517 6,132 6,132 6,132

MLD 20,139 20,139 17,857 17,857 16,802 16,802 16,802

Total Demand

Million m3/yr

10,443 10,833 12,095 13,940 15,068 16,399 17,675

MLD 28,614 29,682 33,142 38,195 41,287 44,933 48,430

Projected Water Demand

• Although regulation of water resources by constructing storages will continue in the future to be the reliable means of meeting demands

~ by regular and proper maintenance of the river systems to enhance the quality of water, more water could be made available especially during drought conditions.

• The demand and operation management practices should include:

~ Decreasing non-revenue water particularly in major urban and industrial water supply systems in all States;

~ Reducing use of water by the introduction of water saving devices in buildings;

~ Discouraging the excessive use of water and wastage by introducing a Tariff Policy to reflect the actual cost of developing water resources system

~ Minimising water usage by recycling of water and effluent reuse

• National Water PolicyNational Water Policy has been proposed to be formulated that will provide a framework for water conservation and management

~ ensure an adequate and safe water supply for the nation.

• The policy will focus on an integrated river basin approach including the protection of catchments areas and reservoirs.

2. Towards having one-stop agency 2. Towards having one-stop agency responsible for the National Water Policyresponsible for the National Water Policy

Malaysian Water Vision 2025

…“In support of Vision 2020 (towards achieving developed nation status),

Malaysia will conserve and manage its water resources to ensure adequate and

safe water for all (including the environment)”…

• The policy will address several challenges

~ managing water resources efficiently and effectively

~ emphasizing the need to keep development to a level that is within the carrying capacity of river basins.

• An integrated river basin approach will be a policy to encourage and enforce sustainable and efficient water use throughout the catchments or series of interlinked catchments and supply zones.

• Selangor Waters Management Authority (SWMA) is a one stop agency for the management of water resources, river basin and costal water in the state of Selangor.

• The inception of SWMA was the result of the directive of the Cabinet Ministers’ Meeting in July 1997

~ Ministry of Agriculture and the Selangor State Government was requested to consider a proposal to established an agency to manage the river and water resources

~ an integrated manner by applying the Selangor River as a pioneer project

~ the Thames River in United Kingdom as a model for its implementation.

• The coordination of the function and jurisdiction between the various agencies and between the State Government and the Federal Government has been formulated

~ eliminate any duplication of functions and responsibilities and to ensure the smooth operation of this new institution.

• SWMA is the pioneering agency in the management of water resources and the river basin ~ legislative and enforcement authority.

• Should SWMA be successful, it will become an example or model that can be adopted by other river basins in the whole country.

• The coordination of the function and jurisdiction between the various agencies and between the State Government and the Federal Government has been formulated

~ eliminate any duplication of functions and responsibilities and to ensure the smooth operation of this new institution.

• SWMA is the pioneering agency in the management of water resources and the river basin ~ legislative and enforcement authority.

• Should SWMA be successful, it will become an example or model that can be adopted by other river basins in the whole country.

• As a one-stop agency, SWMA is entrusted with the responsibility of

~ ensuring the water resources, river basin, coastal area and natural environment surrounding in the State of Selangor is well preserve

~ consistent quality improvements through a management of the water resources and river basins that is carried out in a holistic, integrated and sustainable manner.

• As a one-stop agency, SWMA is entrusted with the responsibility of

~ ensuring the water resources, river basin, coastal area and natural environment surrounding in the State of Selangor is well preserve

~ consistent quality improvements through a management of the water resources and river basins that is carried out in a holistic, integrated and sustainable manner.

3. Privatisation3. Privatisation

• The privatisation of water services embarked by the Federal and State Governments since 1987

~ private sector would be required to manage the water supply services with minimum or no financial assistance from the Government.

• Water tariff rate that adopts the “the more you consume, the more you pay” policy.

• The privatisation of water services embarked by the Federal and State Governments since 1987

~ private sector would be required to manage the water supply services with minimum or no financial assistance from the Government.

• Water tariff rate that adopts the “the more you consume, the more you pay” policy.

• Privatisation is expected to transform investment, as a water undertaking is no longer part of the public spending borrowing requirement.

• One other benefit of privatisation is marked improvements in the delivery and the quality of drinking water, a statutory requirement, which has to be fulfilled by a privatised body.

• The progressive demand for better services standards and better quality create price pressures not normally seen in other utilities.

PUNCAK NIAGA (M) SDN BHD• Concession Holder of:

- Privatization Cum Concession Agreement (“PCCA”) -25 WTPs - Construction Cum Operation Agreement (“CCOA”)-SSP2 WTP-Contract Agreement (“CA”)-Wangsa Maju, Sg Sireh & Sg Lolo WTP

• 29 WTPs – Total average capacity: 1,900 MLD

• Operates and maintains 3 dams- Sg Langat Dam, Klang Gate Dam & Tasik Subang Dam

• Average production capacity = 1,882 million liters per day (MLD), and this volume is equivalent to approximately 45.51% of the treated water requirement in the State of Selangor, KL and Putrajaya.

3. Water as a focus of attention on the 3. Water as a focus of attention on the political agendapolitical agenda

• Water has become the focus for attention on the political agenda at the highest level, when the National Water Council decided that the Federal Government would be responsible for water facilities in Peninsular Malaysia.

• A number of States is known to be struggling to keep up with the rising demand of water mainly due to insufficient funds and revenue to meet high capital cost of work.

• Water has become the focus for attention on the political agenda at the highest level, when the National Water Council decided that the Federal Government would be responsible for water facilities in Peninsular Malaysia.

• A number of States is known to be struggling to keep up with the rising demand of water mainly due to insufficient funds and revenue to meet high capital cost of work.

• Financing water supply undertakings can become very formidable ~ due to shortage of government funds to finance substantial increase in water demand. ~ shortages of fund will inevitable result in the reduction in essential services in the water supply system.

• Changes are inevitable but it is vital to ensure that the water industries do not to lose while maintaining and expanding the coverage to practically everyone in the country at a reasonably low price.

• One central regulatory system responsible for all operating water companies yielding tremendous benefits in planning and implementation among which are:~ A common water policy~ A “one-stop agency” for the industry~ A common tariff system~ A uniform water supply rules and regulation~ Ensuring fair distribution of water to all areas

• One central regulatory system responsible for all operating water companies yielding tremendous benefits in planning and implementation among which are:~ A common water policy~ A “one-stop agency” for the industry~ A common tariff system~ A uniform water supply rules and regulation~ Ensuring fair distribution of water to all areas

~ Ensuring sufficiency of water at sources ~ Better placed for funding management to facilitate

investment~ A better customer focus~ Better placed in economic regulation to be fair to consumers and investors such as ensuring transparency in the pricing process~ In a good position to monitor and control the performance of privatised entities.

4. Material standards and new technology 4. Material standards and new technology

• Malaysia has a total of 88,786 km of water pipelines and some 9,945 km of public sewer. These infrastructures, particularly the buried transmission and distribution water pipeline system are in dire need of rehabilitation.

• They comprise by far the most valuable assets for the two utilities.

• Malaysia has a total of 88,786 km of water pipelines and some 9,945 km of public sewer. These infrastructures, particularly the buried transmission and distribution water pipeline system are in dire need of rehabilitation.

• They comprise by far the most valuable assets for the two utilities.

• In conjunction with this, the Ministry of Works estimated that about RM25 billion is needed for water pipeline rehabilitation over the next 50 years.

• Furthermore, apart from the capital costs, the level of public disruption, which could be involved in using conventional “dig and replace” techniques to solve the problem, is arguably almost as horrifying as the size of the bill.

• In conjunction with this, the Ministry of Works estimated that about RM25 billion is needed for water pipeline rehabilitation over the next 50 years.

• Furthermore, apart from the capital costs, the level of public disruption, which could be involved in using conventional “dig and replace” techniques to solve the problem, is arguably almost as horrifying as the size of the bill.

• The use of polyethylene (PE) pressure pipe systems for water supply in Malaysia has grown rapidly over the past 20 years since its first introduction in 1982.

• PE has become a major material of choice for both communication and reticulating pipe, offering significant advantages over conventional pipe materials.

• Its success however, has lead to not only a rapid increase in its usage, but also a proliferation in the use of “recycle”, unapproved raw materials resulting in poor quality pipe.

• The use of polyethylene (PE) pressure pipe systems for water supply in Malaysia has grown rapidly over the past 20 years since its first introduction in 1982.

• PE has become a major material of choice for both communication and reticulating pipe, offering significant advantages over conventional pipe materials.

• Its success however, has lead to not only a rapid increase in its usage, but also a proliferation in the use of “recycle”, unapproved raw materials resulting in poor quality pipe.

• This combined with inconsistent installation practices has resulted in increased system failures.

• PE pipe systems are designed based on a minimum 50 year life span and as consequence of these issues, the confidence level in the use of PE is being eroded.

• This is contrary to the excellent reputation and track record of PE systems used since the mid 1950s.

• In order to maximise the benefit of PE pipe system, further understanding of the following areas should be considered:

~ Specification

~ Installation methods

~ Jointing procedures • Through improvements in standardisation and the

requirements imposed by the authorities, it is now mandatory for both the raw material and pipe producers to be certified to the Malaysian standard by an accredited certification body.

~ SIRIM Bhd.

• In order to maximise the benefit of PE pipe system, further understanding of the following areas should be considered:

~ Specification

~ Installation methods

~ Jointing procedures • Through improvements in standardisation and the

requirements imposed by the authorities, it is now mandatory for both the raw material and pipe producers to be certified to the Malaysian standard by an accredited certification body.

~ SIRIM Bhd.

• All PE pipe intended for water supply must now be printed with the raw material grade name and certificate number.

• This is considered an important step towards the identification, control and ultimate eradication of unapproved, poor quality pipe in the country.

Latest development in water sector

NWRC was established in June 1998 by the Federal Government with intention to pursue a more effective and cohesive water management by various states.

The formation of NWRC initiated the formulation of National Water Policy (NWP) besides becoming a mechanism for Federal-State Government cooperation on water related matters.

In principle, NWRC and the Federal Government are assessing the implementation of IRBM in the country as a step to further promote effective water management in Malaysia.

National Water Resources Council (NWRC)

Ministry of Natural Resources and Environment water as a resource

Ministry of Energy, Water and Communications water as a utility

Ministry of Agriculture and Agro-based Industries water for food

Ministry of Health Drinking Water Quality Standard

Re-engineering of Ministries March 2004

Water Services Reform March 2005

At a parliament special sitting in January 2005, amendments to the Ninth Schedule of the Federal Constitutions to transfer matters related to water supplies and services from the State List to the Concurrent List (except for Sabah and Sarawak) were approved.

The amendments were gazetted on the 10th February and enforced on the 21st March 2005.

With these amendments, the Federal government will regulate the water services industry in terms of licensing and regulating water service operators.

However, the ownership and control of rivers and canals and raw water remain with the State governments.

The State governments also retain the power to declare and regulate water resources, water catchment areas and river basins.

In mid-2006, two landmark legislations called The Suruhanjaya Perkhidmatan Air Negara Act (Act 654) or SPAN Act and The Water Services Industry (WSIA) Act (Act 655) were approved by Malaysia parliament.

SPAN Act outlines the roles, functions and scope of work to be undertaken by SPAN.

The WSIA Act has provisions to cover economic, technical and social regulations as well as protection of consumer interest .

WATER SUPPLY SYSTEM

Before 2006

WATER SUPPLY SYSTEM

After 2006

With the existing problems faced by water industry namely :

Lack of coordination among various stakeholders, Ineffective regulatory structure ,

Poor enforcement, Capital expenditure constraints, and Varied success of privatization of water supply projects,

the challenge before SPAN is to ensure that the new industry structure will result in a more holistic approach in the management of water services.

Future Expectations• Role of government: enabler, regulator and controller,

private sector involvement• Water legislation: Legislation is part of a framework for

action; Legislation and political will to enforce it; Legislation, regulations and by-laws

• Cross-sectoral and upstream-downstream dialogue: integration of sectoral views and interests in the decision-making process; coordination mechanisms and means

• Financing structures and investment allocations for water resources infrastructure: different investments needed; private financing; conditions for private sector involvement and performance, charging the ‘full’ cost of water (economic cost recovery, supply costs, implied or explicit subsidies)

• Co-operation within river basins: esp basins covering parts of the territory of two or more states/territories; conflict resolution; priority-setting mechanisms; negotiated agreements for water use; joint committees as a mechanism for management

• The institutional roles: roles and functions of organisations at different levels; creation of effective co-ordination mechanisms

• Roles and functions of organisations at different levels: national level bodies; state/local level management; river basin mgmt structure; community participation

• Institutional capacity building: CB for problem solution; training accompanied by incentives

• Management instruments: ‘Tool Box’, tools and methods that enable and help decision-makers to make rational and informed choices between alternative actions

• Water resources assessment: availability and demand; need for a water resources knowledge base; importance of monitoring and gauging systems; EIA-the need for cross-sectoral integration involving project developers, water managers, decision-makers, the public; risk assessment tools – risks associated to climatic events, public health & environmental damage; risk management; precautionary principle

• Communication and information systems: for stakeholder participation, communication strategies, openess and transparency, exchange of information

• Water allocation and conflict resolution• Regulatory instruments: Direct controls; Economic

instruments; Encouraged self-regulation• Technology• Indicators, that help to simplify a complex array of

information with respect to water resources management, performance measurement

• Enabling environment: Policies and legislationStakeholders play respective rolesMechanismsInformation buildingCapacity building

THANK YOUTHANK YOU

TERIMA KASIHTERIMA KASIH