Privatization of Water Distribution and Sewerages
Systems in Istanbul
Assoc. Prof. Dr. Eyup DEBIK
Menekse Koral Isik
Yildiz Technical University, Environmental Engineering Dept., Istanbul-Turkey
Aim and Methods
• The aim of the study is to determine the effects of the privatization of the services for water and sewerage systems on the productivity,
• Data were obtained from Istanbul Water and Sewerage Administration (ISKI),
• The effectiveness of the subcontractors’ works for some main services such as the connection of a service, cleaning of the channel, maintenance of the inspection well etc. were evaluated,
• The data for 1998-1999 and 2004-2005 were compared according to the services supplied as well as employees number.
Why Privatization?
• To improve the productivity,
• To increase the service speed for the public,
• To decrease the cost for the public by improving the
competition between the private sectors,
• To provide the use of the sources effectively,
• To minimize the governmental budget,
• To reduce the number of the governmental employee
Types of Privatization
• Competitive bidding
• Selling (outright selling or selling of a stock)
• Management transfer
• Operational transfer
• Renting
Privatization in Turkey
• First privatization was maintained in England in 1979 and it
was spread whole of the world from the USA after 1980,
• In Turkey, before 1980, utility services were performed at
almost 100% by the government or governmental agencies or
state-owned enterprises,
• During time, state-owned enterprises were very ineffective
and the services cost higher than the real cost,
• After 1980s, the privatization was increased to prevent the
financial load to the government in Turkey
Privatization in Turkey
4,680
2,717
120 536
187
1,283
8,222 8,096
4,259
6,259
2,275
3,085
1,358
494
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1986-99
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Milyon ($)
Years
Privatization works in Turkey (Privatization Administration, 2012)
Privatization in Turkey
Privatization works in Turkey (Privatization Administration, 2012)
28,60131,20
486,90
243,80
422,90565,50
411,80572,50
292,00465,50
1019,70
38,30
2693,90
38,60258,00
141,42
8600,00
8222,248095,29
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
7500
8000
8500
9000m
ilyo
n d
ola
r
1985 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
yıllar
Privatization for Water and
Sewerage Services
• Contracting to supply for services and goods by not only governmental
agencies but also private sector or non-profit organization,
– Private sector as the producer,
– Governmental agency as the payer, regulator and controller
• Requirement for the contract affected the works performance
– Defining the work very well,
– Developing the competition for the work and cost
– Defining the sanctions
• Government can see the contractor performance
Privatization for Water and
Sewerage Services
• Antalya Water and Sewerage Administration (ASAT) awarded a contract for
the operation of water and sewerage systems in 1996,
• The contract has covered operation and maintenance, gauges check, invoicing,
collection activities,
• Bursa Water and Sewerage Administration (BUSKI) made almost same
contract around same years,
• After 2 years of Antalya practice, ISKI (Istanbul Water and Sewerage
Administration) planned to make a contract by putting the master plan
Privatization in ISKI
• ISKI made some contract with private sector for the subjects below first:
– Plant and vehicle maintenance,
– Buildings and sites maintenance,
– Mechanical and electrical maintenance,
– Information technologies services,
– Exchanging, testing and repairing of the gauges,
– Obtaining meals
• Water distribution systems operation and maintenance,
• Sewerage systems operation and maintenance,
• Treatment plant operation and maintenance,
• New customer line connections, starting and ending facilities,
• Small construction facilities,
• Invoicing and collection,
• Losses inspections and elimination
Privatization in ISKI
Şube Peronel
12%
6%
1%52%
16%
1%3% 1% 1%1%
4%2%
Makinist Sayac Kon Odaci PostaBaşı
usta başı anahtarcı anah. Yard usta
usta yard. Füitçi işçi şöfür
2005 1999
Toplam Genel Personel
23%
6%
6%65%
Memur BİMTAŞ BELBİM AŞ İşçi
Privatization in ISKI Toplam Genel Personel
11% 3%
0%
86%
Memur BİMTAŞ BELBİM AŞ İşçi
1999 2005
Toplam Genel Personel
23%
6%
6%65%
Memur BİMTAŞ BELBİM AŞ İşçi
Privatization in ISKI
1%1%
52%10%
13%
4%
3%1% 1% 4%1%4% 1% 4%
YENİ SU BAĞLAMA YENİLEME
SAYAÇ AMBAR İSTEK İPTAL
TESİSAT İPTAL TESİSE EK
BORÇTAN KAPAMA BORÇTAN KAPALI SUYU AÇMA
SAYAÇ DEĞİŞTİRME BORÇTAN KAPALI SUYU KONTROL ETME
YENİ SU KOLON SIZDIRAN SAYAÇ DEĞİŞTİRME
ATÖLYE SORGU ABONE DURUM TESPİT
10 YILLIK SAYAÇ DEĞİŞTİRME
yapılmıştır (İSKİ B.Paşa Şube Müd., 2005).
33%
20%
9%
11%
1% 8% 3%
1% 1% 2% 2% 2% 5%
YENİ SU BAĞLAMA YENİLEME GEÇİCİ İSTEK AÇMA İSTEK İPTAL TESİSAT İPTAL TESİSE EK KAÇAK SU KONTROL SAYAÇ ÖLÇÜYE ÇIKAR BORÇTAN KAPAMA BORÇTAN KAPALI SUYU AÇMA SAYAÇ DEĞİŞTİRME BORÇTAN KAPALI SUYU KONTROL ETME PATLAK SAYAÇ BORÇTAN İPTAL ÇALINTI SAYAÇ YERİNE SAYAÇ TAKILMASI YENİ SU KOLON SIZDIRAN SAYAÇ DEĞİŞTİRME ATÖLYE SORGU ABONE DURUM TESPİT 10 YILLIK SAYAÇ DEĞİŞTİRME RES'EN İPTAL
2005 1999
Ending
Service
Starting
Service Exchanging
Gauges
Controlling the
End Service
Privatization in ISKI
Works done by contractors 1999 2005
Total Employee 1285 1241
Total number of works 330,446 1,062,070
The amount of the savings/investments in $ for some works
Ending Service 516,403 1,232,780
Cleaning the inspection wells 18,602 509,201
Elevating the inspection wells 9,905 489,341
Conclusion
Personnel distribution were changed effectively after the
privatization,
Ending services because of the unpaid bills and checking the
end service were performed very effectively,
Number of services and investments for the utility works was
increased dramatically,
Thus; the water and sewerage utility services has higher
quality and is faster than before privatization.