simposium pengurusan & pengauditan industri air 2009

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


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 3


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


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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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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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


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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Product of RestructuringProduct of Restructuring

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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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PAAB’s Roles (Cont’d)PAAB’s Roles (Cont’d)


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


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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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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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”


FLOW CHARTFLOW CHART

Procurement Open Tender Flowchart

Consultant


1

2

6

7

8

9

10

11

12

14

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18

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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

5

4

Permohonan diterima

13

16

15

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

33 Mendapat maklumat tambahan

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)


1

2

6

7

8

9

10

11

12

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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

5

4

Permohonan diterima

13

Keputusan pihak berkuasa melulus

Agensi keluarkan Surat Setujuterima kepada perunding

LULUS

TIDAK SETUJU

LULUS

33 Mendapat maklumat tambahan

Menyediakan perakuan perlantikan perundingan dengan kaedah bayaran untuk dikemukakan kepada pihak berkuasa melulus

Keputusan perlantikan perundingann oleh pihak berkuasa melulus

14 Tandatangan perjanjian

TIDAK SETUJU

PERUNDINGANLANTIKAN TERUS

(PERUNDING)


FLOW CHARTFLOW CHART

Procurement Open Tender Flowchart

Contractor


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22a 2b

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6

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9

10 13

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12

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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)


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


1. Introduction of:

● Key Performance Indicator

● Level Of Services

● Penalty Scheme

● Project Management Tools

● Work Methodology

New and Planned InnovationNew and Planned InnovationCONSULTANCY SERVICES


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


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



4. Compilation of Records

•Total Asset Management System (WTPs, Reservoir, Pump house, Pipelines etc)

•Land Status and Transfer




5. Introduction of New Technology

•Pilot Plant in Gemas

Static Mixer in Water Process

Streaming Current Meter / Detector (SCM/SCD)

Automatic Lime Use




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



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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Sg Selangor WTP

Sg Selangor Dam – SSP3Intake

DAF

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simposium pengurusan & pengauditan industri air 2009

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