PREVENTING FRESHWATER BANKRUPTCY 1

Regional Workshop onWater Resources Management Financing

Report on National Workshop- MALAYSIA -

Yangon, Myanmar3rd October 2013

PREVENTING FRESHWATER BANKRUPTCY 2

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Organisation• Main issues of WRM• Paper presentation

PREVENTING FRESHWATER BANKRUPTCY 3

Introduction- Organisation

• Jointly organised by Selangor Water Management Authority or Lembaga Urus Air Selangor (LUAS) and Malaysian Water Partnership (MyWP)

• 19th July 2012

• Shah Alam, Selangor

PREVENTING FRESHWATER BANKRUPTCY 4

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Organisation• Main issues of WRM• Paper presentation

PREVENTING FRESHWATER BANKRUPTCY 5

Introduction- Main issues on WRM

Water pollution

FloodsDroughts• Financial constraint to develop water services infrastructure.• A very challenging task to finance efforts to rehabilitate polluted

water resources and conserve pristine water resources.• Water resources is under the jurisdiction of State Governments.

PREVENTING FRESHWATER BANKRUPTCY 6

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Organisation• Main issues of WRM• Paper presentation

PREVENTING FRESHWATER BANKRUPTCY 7

Introduction- Paper presentation

• Water resources allocation in Australia

SKM Consulting Engineers

• Public-private partnership (PPP) and developing a funding solutionKPMG Malaysia

• Financing of WRM in Selangor LUAS

PREVENTING FRESHWATER BANKRUPTCY 8

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Commitment of State Government

• Financing of WRM

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WRM in Selangor- Commitment of State Government

Supports sustainable

environmental management

Addressing global warming

Increasing green lungs

Instill the culture of

environmental conservation

PREVENTING FRESHWATER BANKRUPTCY 10

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Commitment of State Government

• Financing of WRM

PREVENTING FRESHWATER BANKRUPTCY 11

WRM in Selangor- Financing of WRM

Legal support

Intangible sources

Tangible sources

• LUAS Enactment

• Levy collection;• Government aid;• Investment gains;• External sponsorship;• Compensation claim;• Compounds; and• Miscellaneous charges.

• Imposition of mandatory or prohibitory duty;

• Inter-departmental collaboration;

• Social responsibility; and• Savvy service delivery.

PREVENTING FRESHWATER BANKRUPTCY 12

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Water management functions and water user services

• Financing mechanisms• Options/incentives,

recommendations and stakeholders• Recommendations

PREVENTING FRESHWATER BANKRUPTCY 13

Water management functions• Assessment, research and

data collection• Public awareness and

information• River basin/catchment

management• Advocacy and capacity

building• Flood control & drainage• Environmental and

ecosystem protection• Water quality and pollution

control• Multipurpose projects

Water user services• Domestic & industrial water

supply• Sewerage• Agriculture & livestock• Navigation• Hydropower• Fisheries (aquaculture)• Mining• Recreation, sport, tourism,

etc

PREVENTING FRESHWATER BANKRUPTCY 14

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Water management functions and water user services

• Financing mechanisms• Options/incentives,

recommendations and stakeholders• Recommendations

PREVENTING FRESHWATER BANKRUPTCY 15

Water management functionsAspects Financing mechanisms

Assessment, research and data collection

Government funds International funds Revenues from the sale of data and

related publicationsPublic awareness and information

Government funds Private funds (CSR) International funds NGO generated funds

River basin/ catchment management

Government funds Local government funds International funds Payment for ecosystem services (PES)

Advocacy and capacity building

Government funds Private funds (CSR) NGO generated funds

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Water management functionsAspects Financing mechanisms

Flood control & drainage

Government funds Local government funds Contributions from developers

Environmental and ecosystem protection

Government funds Local government funds PES

Water quality and pollution control

Government funds Local government funds Contribution from water operators Contributions from developers PES Polluter pays principle

Multipurpose projects

Government funds Private funds International funds PES Polluter pays principle

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Water user servicesAspects Financing mechanisms

Domestic & industrial water supply

Water Asset Management Company (Pengurusan Aset Air Berhad)

Government funds Private funds Revenues

Sewerage Government funds Private funds Revenues

Agriculture & livestock

Government funds Private funds

Navigation Government funds Private funds Revenues

PREVENTING FRESHWATER BANKRUPTCY 18

Water user servicesAspects Financing mechanisms

Hydropower Government funds Private funds

Fisheries (aquaculture)

Government funds Private funds

Mining Private fundsRecreation, sport, tourism, etc

Government funds Private funds Revenues

PREVENTING FRESHWATER BANKRUPTCY 19

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Water management functions and water user services

• Financing mechanisms• Options/incentives,

recommendations and stakeholders• Recommendations

PREVENTING FRESHWATER BANKRUPTCY 20

Water Management FunctionsOptions/ incentives

Tax incentives Acknowledgement/recognitions/awards/certifications Royalty payment Concession fee Ownership

Recommendations National focal point for water resources Policies including gazettement of water catchments Education syllabus and river rangers National public campaigns including media and others Stakeholder participation National water forum and exhibition Political commitments River basin masterplan based on IWRM principles Full implementation of Stormwater Management Manual River front developments Flood risk maps Regulated development Pollution control through total maximum daily load Dam monitoring and maintenance as well as ERP for dams Polluters pay principle

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Water Management FunctionsStakeholders Government departments and

agencies Learning institutions Religious institutions Companies Water services operators Farmers Public NGOs/CBOs Media All living things (to include

environment and ecosystems)

PREVENTING FRESHWATER BANKRUPTCY 22

Water user servicesOptions/incentives Feed-in-tariff (hydropower)Recommendations Integrated water services industry

Review tariff towards full cost recovery Improve water services efficiency Enforce effluent discharge standards Licensing fees Penalties for violations Water demand management and wise water use No political interventions Waste to energy facilities

Stakeholders Government departments and agencies Water services operators Water services and resources regulators Shipping and transport operators and regulators Water users

PREVENTING FRESHWATER BANKRUPTCY 23

Presentation roadmap

Introduction

WRM in Selangor

Output from the

workshop

• Water management functions and water user services

• Financing mechanisms• Options/incentives,

recommendations and stakeholders• Recommendations

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Recommendations

Sources of funding

Governmentfunds

Penalties

Related fees

Grants and aid

Investment funds

User payments

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Recommendations• Fund water resources functions• Water resources conservation is multi sectors– Harness the resources of other parties– Water problems cannot be solved unilaterally– Implement payment for ecosystem services

• Avoid blanket subsidies • Creation of pollution markets• Application of green technologies• Develop Environmental Funds• Set up a Water Bank

Thank-you