ASIA WATER 2012
Water Supply Management: The PBAPP (Perbadanan Bekalan Air Pulau Pinang Sdn Bhd) Model
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 1 of 41
by Ir. Jaseni Maidinsa Chief Executive Officer, PBA Holdings Bhd
General Manager, PBAPP
Sections Slide
1 History of Water Supply in Penang 3 – 5
2 Penang Water Supply Infrastructure 6
3 Corporatisation & Public Listing • Key Initiatives in Corporatisation & Public Listing 7 – 8
4 Managing Change • Vision, Mission, Commitment & Corporate Objectives
• Organisation Structure (2011)
• PBA Holdings Equity Structure (2010)
9 – 12
5 People with New Corporate Culture • Values 13 – 14
6 New Improved Systems • Customer Care
• iRMS & GIS
• NRW Management
• Certified Management Systems
15 – 20
7 Competitive Advantages • Uninterrupted Water Supply Programme
• Raw Water Sourcing
• WCS
• Aquasave
• PBAPP Prepaid and PBAPP Online Payment
21 – 26
8 Satisfying Customer Needs • Key Statistics 1985 vs 2010
• 2010 Key Performance Indicators
• International Domestic Tariffs
• Asian Trade Tariffs
• FCR Customer Care Branding
• Customer Care Commitments
• 2010 Customer Care Performance
• 2010 POP Results
27 – 35
9 National Water Services Restructuring
Initiative (NWSRI)
• NWSRI Restructuring Model
• Key Developments in Penang’s Migration to the NWSRI
• Stakeholders & Interested Parties / Benefits
36 - 39
10 PBAPP Model: The Next Challenges 40
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 2 of 41
1804 Simple water supply for 10,000 people
1900 Universal water metering introduced in Penang
1919 Water Department in George Town City Council, Penang
1973 Pihak Berkuasa Air Pulau Pinang (PBA) - Statutory Entity
1975 Computerised water billing system
1993 On-the-spot billing system using hand-held computer
1999 Perbadanan Bekalan Air Pulau Pinang (PBAPP)
- Corporatisation of PBA
1. History of Water Supply in Penang
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 3 of 41
1. History of Water Supply in Penang (continued)
2001 • Corporate Restructuring
• On-line one-stop Customer Care Centres
2002 • PBA Holdings Bhd (PBAHB) public listed with PBAPP as subsidiary
• On-line Integrated Revenue Management System
• 24-hour Call Centre 04-5096509
• On-line payment facilities
2003 • ISO 9001:2008 certification for Quality Management
• Corporate website pba.com.my
• Email: [email protected]
2004 Gazetting of Penang’s water catchment areas
2005 ISO 14001:2004 certification for Environmental Management:
Batu Ferringhi WTP and Teluk Bahang Dam
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 4 of 41
2006 • Geographical Information System (GIS)
• ISO 18001:2007 for Occupational Health and Safety Management
2007 ISO 14001:2004 certification for Waterfall WTP
2008 MS ISO/IEC 17025 Accreditation for Laboratories
2009 “friendly • caring • responsive” branding for customer care
“Aquasave” programme for organisations
2010 • ISO 14001:2004 certification for Air Itam WTP
• WCS - Water Conservation Surcharge to promote wise water usage
2011 • Migration to the National Water Services Restructuring Initiative (NWSRI)
• “PBAPP Prepaid” and “PBAPP Online” customer services
• “WaterLinks” award for partnership with PDAM Tirta Musi Palembang
1. History of Water Supply in Penang (continued)
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 5 of 41
2. Penang Water Supply Infrastructure
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 6 of 41
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
CSR
3. Corporatisation & Public Listing
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 7 of 41
3a. Key Initiatives in Corporatisation & Public Listing
• PBAPP was corporatised to be a professional, versatile and result-oriented water
supply organisation.
• PBAPP is a holistic water supplier which sources, treats, distributes and bills for
water supply in Penang.
• PBAPP is a wholly owned subsidiary of PBAHB.
• PBAHB is listed on the Main Board of Bursa Malaysia to facilitate equity
participation by the public, water consumers and employees.
• The Penang State Government holds majority shares, and a golden share, to protect
public interests.
• Since water supply is a critical service industry, PBAPP and PBAHB cannot be
solely profit-driven.
• The PBA Group operates responsibly by including public interest in decision-
making: to serve the people and help sustain our planet while making profits.
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 8 of 41
Vision
Mission
Objectives
Commitment
Corporate
re-structuring
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
CSR
4. Managing Change
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 9 of 41
4a. Vision, Mission, Commitment & Corporate Objectives
Vision Meeting All Your Water Supply Needs
Mission PBAPP will be a Leading Organisation in Water Supply
Commitment We will be environmentally sensitive, responsible, professional,
innovative and committed to excellence and sustainable development
Corporate
Objectives
• Supply potable water at the required standards of quality &
quantity
• Uninterrupted water supply
• Customer satisfaction
• Skilled, competent and motivated workforce
• Timely and orderly development of water resources
• Productive utilisation of financial and other resources
• Continuous improvement in all fields
• Compliance with relevant legislations
• Effective relations with government agencies and
industrial organisations
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 10 of 41
4b. Organisation Structure (2011)
Chairman & Board of Directors
General Manager Corp. Communications Exec. Secretary
Human
Resources
Finance Corporate
Affairs
Planning &
Development
Production Operations
Internal
Audit Information
Technology
Customer
Care
Quality,
Safety &
Health
Facilities
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 11 of 41
4c. PBA Holdings Equity Structure (2011)
(public company)
EPF
4.3%
Penang State Government
(via State Secretary Pg) 54.9%
PDC
10%
Public,
Penang water
consumers and
PBAPP employees
26.7%
Yayasan
Bumiputera
P.Pinang
4.1%
teambuilding centre water supply training
100% 100% 100% 26%
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 12 of 41
Accountability
Communication
Teamwork
Integrity
On-going
Learning
New ways for
Improvement
Vision
Mission
Objectives
Commitment
Corporate
re-structuring
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
5. People with New Corporate Culture
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 13 of 41
5a. Values
The PBA Way People We Motivate (personnel)
Best We Deliver (systems)
Aim for Excellence (services)
Core Values
(ACTION)
• Accountability
• Communication
• Teamwork
• Integrity
• On-going Learning
• New Ways for Improvement
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 14 of 41
Accountability
Communication
Teamwork
Integrity
On-going
Learning
New ways for
Improvement
Vision
Mission
Objectives
Commitment
Corporate
re-structuring
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
6. New Improved Systems
Customer
Care
NRW
Certified
Management
Systems
GIS
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 15 of 41
6a. Customer Care
Facility Key Features Goals / Benefits
Customer
Care Centres (CCCs)
• 9 CCCs at strategic areas
• Online and linked
“Customer Help Desks”
• 20 types of transactions
on-the-spot
• Bill collection efficiency
• Operational efficiency
• Customer convenience & satisfaction
24-hour
Call Centre (509 6 509)
• Open communication 24/7
• Online and linked
“Customer Help Desks”
• Customer convenience & satisfaction
• Operational efficiency
Website (pba.com.my)
• Latest info & statistics
• Online account information
• Online branding
• Customer convenience & satisfaction
• Operational efficiency
Email (consumer@
pba.com.my)
• Email response within
48 hours
• Operational efficiency
• Customer convenience & satisfaction
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 16 of 41
6b. iRMS & GIS
iRMS Database Links Benefits
Integrated
Revenue
Management
System
• I.T.
• Finance
• Customer Care
• Corporate Services
• Operations
• 93.2% bill collection
• Support operations of “Customer Help Desks” at
9 Customer Care Centres & 24-hour Call Centre
• Accurate real-time status review of every
consumer account
• Accurate decision-making
Strumap GIS Integration of Benefits
Strumap
Geographical
Information
System
• Engineering Data
• Consumer Data
• Aerial Photos
• Catchment Plan
• Computer-generated
Strategic Network
Model
• Real-time analysis of distribution network
• Operational efficiency
• Surveillance of catchment areas
• Accurate decision-making
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 17 of 41
6c. NRW Management
Water
Catchment
Raw
Water
Supply
Systems
• dams
• canals
• mains
• pumping
stations
• intakes
Water
Treatment
Plant
Distribution
Systems
• service
reservoirs
• mains
• booster
stations
• sub-mains
• com-pipes
Meter
Position
Internal
Reticulation
Systems
• pipes &
fittings
• pumps
• roof tanks
• suction
• tanks
Cost of
water
sold
“Traditional” NRW Management New Focus New Focus
Water Supply Value Chain
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 18 of 41
6c. NRW Management (continued)
Non-Revenue
Water
Programmes
Benefits
Managing
water loss
• Consumer meter accuracy, meter reading accuracy
and calibration
• Production output meter accuracy, meter reading
and calibration
• Meter management and replacement
• Quality management of materials, technical and
engineering practices
• Speedy pipe repairs
• Pipe replacement programme
• Pressure management
• District metering
• Zone metering for analysis of base night flows
• Active leakage control
• 18.4% in 2011 vs.
national average
of 36.4% in 2010
• Cost savings in
production
• Higher revenue
• Branding
• Chargeable
consultancy
options
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 19 of 41
6d. Certified Management Systems
Certification Scope Goals / Benefits
ISO 9001:2000
(UKAS & DAR)
Quality Management
“Treatment and supply of water and
provision of customer services”
• Continuous Improvement
• Operational Efficiency
• Branding
ISO 14001: 2004
(UKAS) 3 Treatment Plants +
1 Dam to date
Environmental Management
“Management and treatment of raw
water and the supply of potable
water”
• CSR
• Operational Efficiency
• Branding
OHSAS 18001:1999
(SGS International)
Occupational Health and Safety
Management
• CSR
• Operational Efficiency
• Legal Compliance
ISO17025
(Standards Malaysia) Laboratory at
Sungai Dua WTP
Testing, Calibration & Sampling
• Operational Efficiency
• Legal Compliance
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 20 of 41
Better
efficiency
Enhanced
productivity
Improved
optimisation
Further cost
reductions
Better
profitability
Customer
Care
NRW
Quality
standards
GIS
Vision
Mission
Objectives
Commitment
Corporate
re-structuring
Values
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
CSR
7. Competitive Advantages
Accountability
Communication
Teamwork
Integrity
On-going
Learning
New ways for
Improvement
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 21 of 41
7a. Uninterrupted Water Supply Programme
UWSP Projects Benefits
Uninterrupted
Water Supply
Programme
• Continuous on-going replacement of outdated pipes
than are prone to bursting
• Scheduled water interruptions from midnight to
dawn
• Expedited emergency repairs based on information
from 24-hour Call Centre
• Completion of all emergency repairs within 24 hours
• Utilisation of technology (where possible) to fit and
join pipes without interrupting supply
• Materials committee to review and approve
materials for use in water supply networks
• Operational
efficiency
• Consistent
Revenue
• Customer
Satisfaction
• Branding
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 22 of 41
7b. Raw Water Sourcing
New Raw
Water Resource
Proposal
Benefits
80% of Penang’s
raw water is from
Sungai Muda, a
shared resource
Projections indicate
that Sungai Muda
can only sustain
Penang’s raw water
needs until Year 2020
• Identification of additional
(second) key raw water
resource - Sungai Perak
• Pumping of water to Penang
for treatment
• Potential raw water yield is
1,300 MLD
• Under National Water
Services Restructuring
Initiative, raw water transfer
costs will be borne by the
Federal Government while
Penang will invest in
treatment works
• CSR – continuous good water
supply in Penang
• Mitigation of risk (water crisis) in
severe drought
• Sufficiency until Year 2050
• Business sustainability
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 23 of 41
7c. WCS
Water Conservation
Surcharge
Rationale
Benefits
Domestic consumers
who use more than
35,000 liters per month
pay 24 sen more per
1,000 liters
• Penang’s domestic water
tariffs are the lowest in
Malaysia (up to 40,000 liters
per month)
• Penang’s per capita
domestic consumption was
the highest in Malaysia in
2009
• Domestic water tariffs are
subsidised
• Overall consumption has
increased by 45.9% since
1998
• Only those who use more will
pay more
• Demand management
• Reduce wastage
• Sustainability of water supply
• Moderation of new infrastructure
investments
• Management of water tariffs to
ensure affordability for all
• Reduction of subsidy for
domestic consumption
• Maintenance of profitability
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 24 of 41
7d. Aqua Save Programme
Key Features Benefits
Programme to motivate
organisations to be
“water friendly” –
a joint initiative with
by the Penang State
Government
• Open to all commercial and non-
commercial organisations
• Evaluation on innovation and
effectiveness of water
conservation initiatives
• Awards and certificates to be
issued annually
• Successful organisations may use
certification for branding
• Special incentive for organisations
that receive certification for 3
years in a row
• Demand management
• Sustainability of water
supply
• Moderation of new
infrastructure investments
• Control over water tariffs to
ensure affordability for all
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 25 of 41
7e. PBAPP Prepaid & PBAPP Online Payment
PBAPP Prepaid Features Benefits
“Easy, Convenient &
Stress-free” pre-
payment facility
• Consumers can pay in
advance for water bills
• Balance will be deducted
monthly
• e-Payment options
available
• Bill collection efficiency
• Cost savings from commissions
payable to other collection agencies
• Customer convenience and
satisfaction
PBAPP Online Available options Benefits
Convenient payment of
water bills
• AmBank (AmOnline)
• Bank Rakyat (i-Rakyat)
• BSN (myBSN)
• CIMB (cimbclicks)
• HSBC Online
• Maybank2u
• MBF Online
• Pos Malaysia (PosOnline)
• Public Bank (PBeBank)
• RHB Online
• UOB Internet Banking
• Bill collection efficiency
• Cost savings from commissions
payable to other collection agencies
• Cost savings from additional CCC
set-up and manpower costs
• Customer convenience and
satisfaction
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 26 of 41
Better
efficiency
Enhanced
productivity
Improved
optimisation
Further cost
reductions
Better
profitability
Customer
Care
NRW
Quality
standards
GIS
Vision
Mission
Objectives
Commitment
Corporate
re-structuring
Values
Efficiency
Productivity
Optimisation
Cost
reduction
Profitability
CSR
8. Satisfying Customer Needs
RIGHT
BALANCE:
service
price
quality
quantity
time
Accountability
Communication
Teamwork
Integrity
On-going
Learning
New ways for
Improvement
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 27 of 41
1985 2011 x times
1. Area of Penang State sq km 1,031 1,031 nil
2. Water Catchment Areas sq km 62.9 62.9 nil
3. Population million 1.07 1.61 1.5
4. Registered Water
Consumers
domestic
trade
total
138,696
11,419
150,115
449,892
70,482
520,374
3.2
6.2
3.5
5. Supply Coverage urban %
rural %
96.0
87.0
100.0
99.7
6. Total Pipe Length (100mm & above) km 2,206 4,052 1.8
7. Treatment Plants no. 11 10
8. Average Daily Production mld 344 951 2.8
9. Average Daily Consumption mld 270 776 2.9
10. NRW % 21.5 18.4
11. Customer Care Centres no. 6 9
12. Total Manpower no. 1,164 1,178
8a. Key Statistics 1985 vs 2011
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 28 of 41
8b. 2011 Key Performance Indicators
* Average of RM0.31 per 1,000 litres for the first 35,000 liters p/m
** Average of RM1.19 per 1,000 litres for the first 500,000 liters p/m
1. Supply Coverage • 100% in urban areas
• 99.7% in rural areas
2. Average Supply Time 24 hours
3. Water Quality Compliance to National Water Quality (MOH)
4. NRW Percentage 18.4% (National Average 2010 – 36.4%)
5. Average Pressure in
Distribution System
35m
(min. 10m at meter position)
6. Water Tariffs • Lowest for domestic in Malaysia*
• Amongst the lowest for trade in Malaysia**
7. Bill Collection Efficiency 93.2%
8. Financials • Revenue RM256.1 million
• PAT RM 47.0 million
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 29 of 41
8c. International Domestic Tariffs 2010
Source: National Geographic Magazine (April 2010)
* Conversion rates February 2011
Average in RM (USD*) per 378 liters (approx. 15,120 liters per month)
Average in RM (USD*) per 378 liters (approx. 15,120 liters per month)
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 30 of 41
8d. Asian Trade Tariffs 2011
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ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 31 of 41
8e. FCR Customer Care Branding
The slogan and the hand sign for “okay” reflect our
commitment to you from the moment you step into our
Customer Care Centre.
You can look forward to friendly service because we
want to build and sustain a lasting relationship with you.
You can be assured of a caring approach as we strive to
provide you with the best possible assistance and
advice.
Most importantly, you will find that we are responsive as
we strive to attend to all your needs in a timely manner.
Welcome to your friendly, caring and responsive
Customer Care Centre.
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 32 of 41
8f. Customer Care Commitments 2
Service Standards Performance Indicator 2010
1. Average Waiting Time (CCC) 4 minutes
2. Average Serving Time (CCC) 5 minutes
3. Average Payment Serving Time (CCC) 1 minute
4. Average Speed of Answering Calls 5 rings (20 seconds)
5. Average Answering Rate 95%
6. Average Message Retrieval 30 minutes
7. Average Report Updating 24 hours
8. Response to written communications 7 working days
9. Response to emails 2 working days
10. Follow-up on escalations 5 working days
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 33 of 41
8g. 2011 Customer Care Performance
Water Service Issues Reported Closed %
1. No Water Supply 4,973 4,307 86.6
2. Broken Pipes 42,587 38,050 89.4
3. Pressure High / Low 4,029 3,233 80.2
4. Consumption High / Low 11,441 9,928 86.8
5. Water Quality 770 697 90.5
6. Illegal Water Connections 1,090 973 89.3
7. Road Reinstatement & Potholes 1,367 947 69.3
8. Billing 8,912 7,169 80.4
9. Misc. Billing 117 68 58.1
10. New Supply 30,122 26,372 87.6
11. Reconnection 26,299 24,969 94.9
12. Disconnection 44,602 41,477 93.0
13. Deposit 11,774 9,539 81.0
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 34 of 41
8h. 2010 POP (Public Opinion Poll) Results
Domestic Consumers %
1. Water Quality Acceptance Rating 82
2. Overall PBAPP Service Approval Rating 95
3. Water Tariff Acceptance Rating 94
Trade Consumers
4. Water Quality Acceptance Rating 98
5. Overall PBAPP Service Approval Rating 98
6. Water Tariff Acceptance Rating 74
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 35 of 41
9. National Water Services Restructuring Initiative (NWSRI)
Pre-2005 Individual States in Malaysia
were responsible for water
supply services
Jan 2005 The Malaysian Constitution
was amended – treatment and
distribution of water became a
joint responsibility with the
Federal Government
Jan 2008 The National Water Services
Commission (NWSC) Act and
Water Services Industry Act
(WSIA) were implemented to
facilitate Federal regulation
June 2011 Penang migrated to the
National Water Services
Restructuring Scheme
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 36 of 41
GRANTS for
Construction
of Raw Water
Resources
9a. NWSRI Restructuring Model
MINISTRY of Energy, Green Technology and Water
National Water Services Commission
(SPAN) - REGULATOR
Water Asset
Management Company
(PAAB) –
WATER ASSET
OWNER &
DEVELOPER
Licensed Water Operators
(such as PBAPP) –
OPERATIONS &
MAINTENANCE
CONSUMERS
Regulation & Licensing
Water Supply
Lease Assets
Lease Payments
* Source PAAB
Policy Making
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 37 of 41
1 Federal grant provided to finance RM1.2B Mengkuang Dam expansion project
that will help to assure raw water sufficiency until 2020.
2 Repayment of outstanding Federal loans totalling RM655.24M for past water
infrastructure projects stretched to 45 years without interest.
3 Penang state water supply assets (valued at RM655.24M) alienated to PAAB
for 45 years. PBAPP assets are not affected.
4 PAAB leases water supply assets back to PBAPP for a lease payment of
RM14.56M per annum.
5 Upon full settlement of the lease in 45 years, the water supply assets reverts
back to the Penang State Government.
6 PBAPP is licensed by SPAN as the State Water Operator for Penang.
7 PBAPP pays a License Fee of 1% of its gross water revenue per year for the
Service and Facility Licences from 31 May 2012.
8 PBAPP has option to tap PAAB funds for future infrastructure projects.
9 Penang State Government retains control of PBAPP via majority
shareholdings in PBA Holdings Bhd – PBAPP’s public listed holding co.
10 Penang State Government retains control of water tariffs.
9b. Key Developments in Penang’s Migration to NWSRI
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 38 of 41
9c. Stakeholders & Interested Parties / Benefits
1. People of Penang Compliance with Federal Law
Penang State Government retains
control of PBAPP and water tariffs
Penang gets RM1.2B grant for
Mengkuang Dam expansion project
Federal grants for future raw water
resource development projects
Repayment of RM655.24M in
outstanding Federal loans stretched
to 45 years on interest-free basis
Option to access funds from PAAB
for capex to implement water
infrastructure projects
2. Penang State Government
3. Malaysian Federal Government
4. SPAN – the National Water Services
Commission
5. PBA Holdings Bhd
(PBAPP’s public listed holding company)
6. Shareholders
7. Bursa Malaysia (Malaysian Bourse)
8. Malaysian Securities Commission
9. Minority Shareholders Watchdog
Group (MSWG)
10. Share Analysts
11. NGOs – Non-Government
Organisations
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 39 of 41
10. PBAPP Model : The Next Challenges
• Highly Competent,
Motivated & Creative
Workforce
• Continuous
Operational
Excellence
• Continuous Friendly
Customer Services
• Continuous
Reduction of Costs
& Wastages
• Least Cost Funds
Acceptable
Water
Tariffs
Reasonable
profits
To Be A
World-Class
Water Supplier
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 40 of 41
THANK YOU
Ir. Jaseni Maidinsa
Chief Executive Officer, PBA Holdings Bhd
General Manager, PBAPP Sdn Bhd
© Perbadanan Bekalan Air Pulau Pinang Sdn Bhd 2012. All rights reserved
ASIA WATER 2012, Kuala Lumpur Convention Centre, 28-03-2012 / Slide 41 of 41