Custodian of National Water Assets
SIMPOSIUM PENGURUSAN & PENGAUDITAN INDUSTRI AIR 2009
PAAB’S ROLES & RESPONSIBILITIES IN DEVELOPING THE NATION WATER INDUSTRY
Ir Abdul Kadir Mohd Din
Chief Operating Officer
2 – 3 November 2009
PENGURUSAN ASET AIR BERHAD
Custodian of National Water Assets
ContentsBackground of Water IndustrySeparation of Roles & ResposibilitiesProduct of RestructuringPAAB’s Roles & ChallengesPAAB’s General Procurement ProceduresSummary
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Custodian of National Water Assets
STAGES OF DEVELOPMENT
Division of Public Works Department
Waterworks
Department
Water
Board
Corporatized
Bodies
Privatized
Bodies
•Perlis • Pahang
• Negeri Sembilan
• Labuan
•Kedah
• Perak
• Kuching & Sibu (Sarawak)
• Terengganu
• Laku (Sarawak)
•Melaka
• Kelantan
• Penang
•Selangor / KL
• Johor
Sewerage Services was privatised nationwide in 1990’s except for Sabah, Sarawak, Kelantan & Johor Bharu Local Authority.
Background of Water IndustryBackground of Water Industry
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Previous
• Perlis
• Sarawak (except Kuching and Sibu
• Pahang
• Sabah
•Labuan
•Kedah
• Perak
•Kuching & Sibu
(Sarawak)
• Terengganu
•Johor
•Kelantan
• N.Sembilan
•Melaka
2009 Todate
Custodian of National Water Assets
1982First Comprehensive Water Resources Study completed by JICA ( Demand up to 2000).
1987First Water Supply privatisation to Taliworks Consortium for O&M of Semenyih WTP followed by corporatisation and privatisation of entire WS services state wide.
1990-1992Rising concerns for water supply situation and abortive attempt to establish a National Water Board.
1993Sewerage Services Act (504) was passed by Parliament and mandated Sewerage Services Department to take role as regulator.
1994Sewerage Services O&M privatised to Indah Water Konsortium Sdn Bhd (IWK). All assets transfer from local authorities to federal government except Sabah, Sarawak, Kelantan & Johor Bharu Local Authority.
1996EPU set up the Sanitation Services Commission, National Water Council & National Water Commission.
1998 National Water Resources Council was established.
1999-2000Task Force formed under Ministry of Housing & Local Government(MHLG) to establish National Water & Sanitation Commission.
2000Draft framework of National Water Policy prepared by Ministry of Works.IWK wholly owned by Ministry of Finance Incorporated.
Chronological Event of Water Industry Chronological Event of Water Industry RestructuringRestructuring
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Custodian of National Water Assets
2001
Two separate Control Commission established:1. National Water Commission – Ministry of Works2. National Sanitation Commission – Ministry of Housing & Local GovernmentSecond National water Resources Study completed (Demand from 2000-2050).
2002Ministry of Works commenced study on establishment of National Water Commission (KIV).
2003National Water Resources Council decided to transfer responsibility of water from
state to Federal Government and Draft Framework of National Water Policy was approved.
2004 Water Supply from Ministry of works and Department of Sewerage Services moved to new Ministry of Electricity, Water & Communication (MEWC.)
2004 Water Supply from Ministry of works and Department of Sewerage Services moved to new MEWC and IWK was placed under same ministry.
2005Federal Constitution of Malaysia was amended for joint responsibility of water services. Matters related to Water Supplies & Services transferred from state list to concurrent list.
2006 WSI Act (Act 655) and NWSC (Act 654) approved by Parliament and the KingNWSC (SPAN) and WAMCO were established.
2007 NWSC Act enforced in January and WSIA Act was enforced in last quarter.
2008Melaka & Negeri Sembilan migrated into new regime. PAAB to develop and implement Langat Water Supply Scheme in Selangor.
2009 Johor State migrated into new regime.
Chronological Event of Water Industry Chronological Event of Water Industry Restructuring (Cont’d)Restructuring (Cont’d)
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Custodian of National Water Assets
SPAN RegulatorSPAN
Regulator
PAABWater Asset Owner &
Developer
PAABWater Asset Owner &
Developer
WATER OPERATORSOperation & Maintenance
WATER OPERATORSOperation & Maintenance
CONSUMERSCONSUMERS
Lease Water Assets
Lease Payments
Supply of Treated Water
Separation of RolesSeparation of Roles
•Regulate•Licensing
MINISTRY OF ENERGY, GREEN TECHNOLOGY
AND WATER
MINISTRY OF ENERGY, GREEN TECHNOLOGY
AND WATER
•Policy making
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STATE GOVERNMENT Water Catchments
STATE GOVERNMENT Water Catchments
Raw Water•Regulate•Licensing
Custodian of National Water Assets
Roles of Major StakeholdersRoles of Major Stakeholders
BodyArea of
ResponsibilityDescription
Federal Government Policy mattersDevelopment of a holistic water policy for the country bysetting policy directions.
State Government Water basin mattersManage existing water basins with the view of protecting thequality of raw water and identifying new water basins whenrequired.
National Water Resources Council
Governance mattersEnsures coordination with the various State Government inthe management of the water basins.
SPAN Regulatory mattersRegulate the whole water industry based on the policydirections set out by the Federal Government.
PAABDevelopment of Water
AssetsConstruct, refurbish, improve, upgrade, maintain and repairwater infrastructure systems.
Water OperatorsOperation of Water
AssetTreat and supply treated water to Consumers.
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Custodian of National Water Assets
1. Develop a “World Class Water Infrastructure” in Peninsular Malaysia and FT Labuan.
2. Source and obtain funding for the development of the nation’s water assets and lease such assets to water operators licensed by SPAN for operations and maintenance.
3. Assist the Government to restructure the nation’s water industry towards achieving the Government’s vision for efficient and quality water services.
PAAB’s Roles & ChallengesPAAB’s Roles & Challenges
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Custodian of National Water Assets
Future Challenges – Asset Future Challenges – Asset Coordination Coordination
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State /AssetsType Dam
Water Treatment
Plant*
Service Reservoir*
Pump Stations* Total Pipeline (Km)*
Southern
Negeri Sembilan 5 23 856 137 1,035 6,608
Melaka 5 6 124 37 174 4,671
Johor 10 42 655 67 775 17,802
EasternPahang 1 77 215 115 379 8,961
Terengganu 4 14 41 0 91 7,406Kelantan 1 31 41 22 101 4,726
Northern
Perlis 1 3 12 1 23 1,794Kedah 4 32 164 65 266 10,594
Penang 10 10 54 65 138 3,809Perak 1 45 155 33 235 10,404
WesternSelangor 10 33 5 10 58 23,502
WP Labuan 3 3 28 6 39 469
Total 55 319 2,350 558 3,282 100,746
*Records are based on current survey (Oct 2009) and previous database
Custodian of National Water Assets
Projected Domestic and Industrial Demand
Year Demand (MLD) % Increase
2000 9,655 -
2010 15,285 6.0
2020 20,338 3.3
2030 24,485 3.0
2040 28,131 1.5
2050 31,628 1.2
Future Challenges – Increasing Water DemandFuture Challenges – Increasing Water Demand
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Custodian of National Water Assets
Capital Investments (For Water)
Period RM Million
2000 - 2010 22,180
2011 - 2020 15,241
2021 - 2030 6,921
2031 - 2040 6,371
2041 - 2050 1,220
Total: 51,933
Future Challenges – Capital InvestmentsFuture Challenges – Capital Investments
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Custodian of National Water Assets
PAAB is a company wholly owned by the Minister of Finance Incorporated.
All tender procedures are subjected to Government Procedures:
•Adhering to Surat Pekeliling Perbendaharaan (SPP) and Arahan Perbendaharaan (AP).
•Approval by PAAB’s Board of Director.
•PAAB’s Procurement Manual
Tender AdministrationTender Administration
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“Generally all Works are under open tender”
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FLOW CHARTFLOW CHART
Procurement Open Tender Flowchart
Consultant
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Mengkaji, menyemak dan memproses permohonan
LENGKAPTIDAK LENGKAP
Mempelawa CTK kepada perunding oleh pihak berkuasa melulus
Menubuhkan JTKP
Penilaian cadangan teknikal
Penilaian cadangan kewangan
JTKP menyediakan laporan dan perakuan untuk dikemukan kepada urusetiaUrusetia menyediakan perakuan perlantikan dan kos untuk dikemukakan kepada pihak berkuasa melulus
Bayaran
Tandatangan Perjanjian
Agensi keluarkan surat setujuterima kepada perunding
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Permohonan diterima
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Keputusan oleh pihak berkuasa melulus
Urusetia menyediakan perakuan untuk dikemukakan kepada pihak berkuasa
melulus
SETUJU
TIDAK SETUJU
Rundingan Teknikal dan Kewangan dengan Perunding
LULUS TANPA RUNDINGAN
Agensi keluarkan Surat Niat kepada perunding
LULUS PERLU RUNDINGAN
TIDAK SETUJU
TIDAK SETUJU
LULUS
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Menyediakan perakuan senaraipendek firma perundingan untuk dikemukan kepada pihak berkuasa melulus
Kelulusan senarai pendek firma perunding oleh pihak berkuasa melulus
Keputusan pihak berkuasa melulus
PROSES SECARA CADANGAN TEKNIKAL DAN KEWANGAN (PERUNDING)
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Mengkaji, menyemak dan memproses permohonan
LENGKAPTIDAK
LENGKAP
Agensi mengeluarkan surat niat kepada perunding
Perunding mengemukakan cadangan teknikal dan kewangan
Agensi menubuhkan JKTP
JKTP mengadakan rundingan teknikal dan kewangan
JTKP menyediakan laporan dan perakuan untuk dikemukakan kepada urusetia
Urusetia menyediakan perakuan kelulusan kos untuk dikemukakan kepada pihak berkuasa melulus
Bayaran
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Permohonan diterima
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Keputusan pihak berkuasa melulus
Agensi keluarkan Surat Setujuterima kepada perunding
LULUS
TIDAK SETUJU
LULUS
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Menyediakan perakuan perlantikan perundingan dengan kaedah bayaran untuk dikemukakan kepada pihak berkuasa melulus
Keputusan perlantikan perundingann oleh pihak berkuasa melulus
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TIDAK SETUJU
PERUNDINGANLANTIKAN TERUS
(PERUNDING)
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FLOW CHARTFLOW CHART
Procurement Open Tender Flowchart
Contractor
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Agensi pastikan samada memerlukan perunding atau tidak
TIDAK PERLU
PERLU
Tentukan jenis tender
Penyediaan document tender
Iklan tender
Penilaian teknikal dan kewangan
Penyediaan kertas taklimat tender
Pembentangan kertas taklimat tender kepada LPA
Pertimbangan Kem. Kewangan jika nilai tender > RM100 juta
Pertimbangan LPA jika nilai tender < RM100 juta
Keputusan tanpa syarat
Urusetia menyediakan perakuan perlantikan dan kos untuk dikemukakan kepada pihak berkuasa melulus
Keputusan tanpa syarat
Keputusan bersyarat
Keluarkan Surat Niat
Adakan rundingan dan dapatkan persetujuaan
Bayaran
Pentadbiran
Kemaskini kontrak / tandatangan kontrak
Keluarkan Surat Niat
Adakan rundingan dan dapatkan persetujuaan
Keputusan bersyarat
Jabatan Teknikal Perunding
PROSES KERJATENDER TERBUKA BAGI KERJA PEROLEHAN(KONTRAKTOR)
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NEW INNOVATION INTRODUCED IN PAAB’S TENDER AND PROJECT ADMINISTRATION
1)Introduction of KPI, LOS, Penalty2)New Terms of Reference for Designers 3)Standard Bills of Quantities 4)Compilation of Records5)Introduction of New Technology6)Others
a) Management of WTP Residualb) Establishment of Design and Research Centrec) Establishment of Education Training Centre
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1. Introduction of:
● Key Performance Indicator
● Level Of Services
● Penalty Scheme
● Project Management Tools
● Work Methodology
New and Planned InnovationNew and Planned InnovationCONSULTANCY SERVICES
Custodian of National Water Assets 27
2. New Terms of Reference for Designers Water Industry
•More comprehensive and mainly confine to Water Industry
•Includes new area of services such as:
Risk Management and Crisis Management
Hazop and Hazrev
Asset Management and NRW Control System
Health Hazard & Security
Mentor-Mentee
Project Quality Plan
New and Planned Innovation (Cont’d)New and Planned Innovation (Cont’d)CONSULTANCY SERVICES
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New and Planned Innovation (Cont’d)New and Planned Innovation (Cont’d)
3. Initiation on the Preparation of Standard Bills of Quantities for water Industry
•Cooperation with Construction Industry Development Board (CIDB).
•Memorandum of Agreement Signed on 3 July 2009.
•Standard Method Measurement For Water Industry
CONSULTANCY SERVICES
Custodian of National Water Assets 29
New and Planned Innovation (Cont’d)New and Planned Innovation (Cont’d)
4. Compilation of Records
•Total Asset Management System (WTPs, Reservoir, Pump house, Pipelines etc)
•Land Status and Transfer
CONSULTANCY SERVICES
Custodian of National Water Assets 30
New and Planned Innovation (Cont’d)New and Planned Innovation (Cont’d)
5. Introduction of New Technology
•Pilot Plant in Gemas
Static Mixer in Water Process
Streaming Current Meter / Detector (SCM/SCD)
Automatic Lime Use
CONSULTANCY SERVICES
Custodian of National Water Assets 31
New and Planned Innovation (Cont’d)New and Planned Innovation (Cont’d)
6. Others
•Study of Management of WTP Residual in Malaysia
•Initiatives on the Establishment of Water Academy in Malaysia (in Collaboration with Malaysian Water Academy)
•Initiatives in the Establishment of Design and Research Centre
•Initiatives on the Establishment of Education Training Centre
CONSULTANCY SERVICES
Custodian of National Water Assets
SUMMARYPAAB adhered closely to the MoF Procurement
procedures, Procurement Manual and GLC Red BookCompliance is towards good governance but not a
hindrance to progress and expediencyIntroduction to quality services at all sectors and fields
for development of good life cycle of assetsHolistic approach with good transparency in executionIn line with the vision of creating a Holistic, Transparent
and sustainable Water Industry
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