Leadership Forum on Water Supply and Sanitation - Nasir Presentation

8/6/2019 Leadership Forum on Water Supply and Sanitation - Nasir Presentation

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MELAKA WATER COMPANY LIMITED

Speaker : Ir.Hj. Mohd.Khalid bin Hj. Nasir

Chief Executive Officer , Melaka Water Company Limited

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies ofthe Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee theaccuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used maynot necessarily be consistent with ADB official terms.



Population : 700,000 (Multiracial)

Land Area : 1651 square kilometer

Activities : Manufacturing,Tourism,

Agriculture








Melaka is known as a historically rich

state and was founded by Parameswara

the last Malay ruler of Temasik

in 1396 when he and his followers

retreated up the straits to Muar, thento Sungai Ujung before settling at Bertam

near the estuary of Melaka River.

About Melaka…




Brief History of Melaka

1511- fell to the hands of the Portuguese.

1641- followed by the Dutch after a fierce battle.

1795- was given to the British to prevent it falling to the French

when the Netherlands was captured during the Napoleonic Wars.

1818- returned to the Dutch under the treaty of Vienna

and later exchanged by the Brisith for

Bangkahulu, Sumatra.

1826- British East India Company along with

Singapore and Penang governed it, under

the Straits Settlement administration in Calcutta.

20 February 1957- After World War II, -anti-colonial sentiment

bred in the country , the proclamation of Independence

of Malaya at Melaka Town.



MELAKA WATER BOARD

* Formed on 1st Oct. 1971

* Under the Melaka Water Board

Enactment 1971

MELAKA WATER CORPORATION

* Formed on 1st Sept. 1993

* Wider powers given under the enactment

functions & objectives remains.


* Formed on 1st July 2006

* Chief Minister’s Incorporated Company inline with Water Services Reformation under Ministry of Energy, Water & Communication.





Consumers

Melaka Water

Company LimitedFederal

Government

Chief Minister’s

Incorporated




Supply water to

domestic consumers,

industries & others

in the whole state of

Melaka with :

•Sufficient quantity

•Good quality

•Economic cost

•Efficient & customer-oriented services




•Provides potable water to the whole state of Melaka Population served : 700,000

•Properties connected : 225,000 Operating Revenues : RM125mil

- Domestic : 198,000- Industrial : 25,700 Assets owned : RM1.127bil

•Total Employees : 646 MS ISO 9001:2000 Certification Scopes

Management : 17

Executive : 33 1) Administration,Finance,Planning, Project Implementation

Non-executive : 596 relating to water supply.

Water Bills 2) Production of Potable water.

Monthly read&serve : 225,000

Water tariff 3) Operation & Maintenance of Water Distribution System

Average of Domestic rate : RM0.72/m3

Average of Industrial rate : RM1.40/m3



•No. of Treatment Plants : 7

•Production capacity : 495 mld

•Total pipe length : 4000km

•Pipe material : AC, UPVC, HDPE, Mild Steel,

& Ductile iron

•No. of dams : 4

•Water resources : 2 rivers

•Booster Pump House : 28

•Tanks & reservoirs : 140

•NRW : 29%

•Water supply coverage : 100%

•Supply : 24 hours / 365 days

•Connection per staff : 348

•Water Quality Standards : WHO & Ministry of Health

Malaysia





FINANCIAL TECHNICAL HUMAN RESOURCE

Constrain of federal fund for

capital expenditure

No uniform water supply rules

& regulation

Inadequate staff- controlled by

Public Services Department

Limited financial resources No clear National Water Policy Limited developed human

resource capacity

Low water tariff Network is not adequate -

needs replacement

Resistance to change - comfort

zone

Poor arrears collection Inadequate water resources &

unstable raw water quality

Lack of excellent work culture

Burden to payback annual

annuity for Federal Loan

Lack of Pressure & Reservoir

Management System

Limited career development

due to close department

Limited & ever decreasing

capital investment

Infrastructure is more than 30

years old & ageing pipes used

Incondusive working

environment

No uniform standard guideline

on materials use in water

supply system

Safety & Health workplace -

have not been given priorities




• The respective States in Malaysia are responsible for their water supply services

prior to the amendments to the Constitutions.

• In early 2003, the Federal Government began the restructuring process to create amore effective and efficient Water Services industry.

• The Federal Constitutions was amended in Jan 2005 whereby water supplyservices on treatment and distribution transfer to a joint responsibility with theFederal Government.

• The National Water Services Commission (NWSC) Act and Water Services IndustryAct (WSIA) were established to provide framework and regulated the water

services.

• Existing Water Supply Departments to be corporatized.

• Establishment of Water Asset Management Company (WAMCO) , wholly owned byMinistry of Finance to facilitate process of transformation into new water supplyindustry regime.




Amendment to the

Federal Constitution

Passing of the Water

Services Industry Act

and National Water

Services Commission Act

Establishment of

WAMCO

Establishment of SPAN

Approval of Framework

for Water Services

Industry Restructuring

Milestone

Feb 2005

May 2006

Jun 2006

Apr 2007

Aug 2007

ImplicationsWater services transferred to

concurrent list.

Water Asset Management Company

(WAMCO) was established to assume

the responsibility as a Facilities

Licensee.

Legislation enabling the reform of the

water services industry and

introduction of uniform regulations

Regulator established to license,

benchmark and regulate water

operators. Also an economic regulator

to set water tariffs.

Federal Government approval of the

framework for WAMCO to implement

the national water services industryrestructuring initiative.

CORPORATISATION

BACKGROUND ON WATER SERVICES INDUSTRY




CORPORATISATION

Framework for Water Services Industry Restructuring

FederalGovernment

SPANWAMCO

(FacilitiesLicensee)

Water Operators(Service

Licensee)

StateGovernment

Water Policy Framework √

Ownership of Water Assets √

Ownership of Water Operators

√

OPEX √

CAPEX √

CAPEX for dams √

Tariff & Setting Regulations √

Protection of Water Resources

√

Agency

Role




Federal Government Policy mattersDevelopment of a holistic water policy for the country

by setting policy directions.

State Government Water basin matters

Manage existing water basins with the view of

protecting the quality of raw water and identifying new

water basins when required.

National Water Resources

CouncilGovernance matters

Ensures coordination with the various State

Government in the management of the water basins.

SPAN Regulatory matters Regulate the whole water industry based on thepolicy directions set out by the Federal Government.

PAAB Water Asset MattersConstruct, refurbish, improve, upgrade, maintain and

repair water infrastructure systems.

CORPORATISATION

Malaysian Water Industry Restructuring Framework

Agency Functions & Roles

WAMCO

The establishment has facilitated the clarification of roles and function among the agencies






KEY PERFORMANCE INDICATORS

Effective Delivery

System QAP Index

(No. of Violations / No. of

Samples) x 100% %

based on MOH National

Guidelines

Average Response

Time

Total average time 'Call to

Restored' per Customer minute

Ensure High Quality

Resources DOE Class II limit

BOD and COD pollutans

discovered by DOE ppm

Drive

Operational

Excellence

Cultivate Maintenance

Culture

Corrective

Maintenance Ratio

Corrective against Total

(maintenance costs) ratio

Preventive

Maintenance Ratio

Preventive against Corrective

(maintenance cost) %

Efficent Project

Delivery

Capital Projects

Update

Actual against Scheduled (ahead

or delay)

% (+ve or

-ve)

STRATEGY OBJECTIVES MEASURES DESCRIPTION / FORMULA UNIT





Develop Best Practices NRW Reduction

Present against 12-month Running

Average %

Water Loss Water loss per Service Connection

litres

/day

Manage

Non-RevenueWater

Enhance TechnicalCollaboration No. of Key Research

No. of Approved Key Researchassigned number

Develop Benchmarking

Program Status

Update

Achievement on benchmarking

program

%

achieved






Improve Staff

Competency

Specialist Training

Ratio

Special Training against Total

Training (mandays) ratio

Training Man days per

Staff

Total training man days /Total

Staff Man days

Passion

Atract & Retain Top

Performers Succession Plan

Succession Management

developmental

%

progress

for Excellence program (milestone)

Improve Community

Satisfaction

Community

Awareness

Effectiveness of Community

Awareness Program index

(feedbacks and structured

survey result)

Enhance Integrated-

GIS

System Integration

Update

Actual against Schedule (system

integration)

%

achieved





POSITIVE OUTCOMES

• Able to determine and implement tariffs that have been established through the

appropriate mechanism and tools.

• Increase concerted efforts in particular to the reduction of non revenue water

through short ,medium and long-term programs.

• Able to ensure national development goals pertaining coverage, supply and access to

services is supported by over-seeing inter-state water transfer.

• Able to match the current demand and long-term sustainability for water services through

continued capital works development facilitated by the WAMCO and Federal Government.

• Consumers have a clear channel for communication and increase in the level of awareness

that it costs money to bring water from river to their homes.

•Demands of consumers are accounted for through stakeholder participation in relevant

decision making processes.

• Raise awareness on the development of the industry through the dissemination of key

performance indicators for the company.




CONCLUSION

● The other factor that triggered the commercialization process in Malaysia was

the emerging trends in global water management : the “Corporatisation of Water Services”.

● Corporatisation was seen as a way to improve efficiency in the delivery

system of social services, ensure innovation and creativity and reduce

politicization of public services.

•The water supply sector in Malaysia is undergoing major reforms.

Documents

Leadership Forum on Water Supply and Sanitation - Nasir Presentation