water supply management - mwa

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



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



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



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)



2. Penang Water Supply Infrastructure



Efficiency

Productivity

Optimisation

Cost

reduction

Profitability

CSR

3. Corporatisation & Public Listing



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.



Vision

Mission

Objectives

Commitment

Corporate

re-structuring

Efficiency

Productivity

Optimisation

Cost

reduction

Profitability

CSR

4. Managing Change



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



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



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%



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



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



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



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”



Website (pba.com.my)

• Latest info & statistics

• Online account information

• Online branding



Email (consumer@

pba.com.my)

• Email response within

48 hours





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


• Surveillance of catchment areas

• Accurate decision-making



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



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



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


• Branding

OHSAS 18001:1999

(SGS International)

Occupational Health and Safety

Management

• CSR


• Legal Compliance

ISO17025

(Standards Malaysia) Laboratory at

Sungai Dua WTP

Testing, Calibration & Sampling


• Legal Compliance



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



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



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



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



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



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


• 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


• Cost savings from commissions

payable to other collection agencies

• Cost savings from additional CCC

set-up and manpower costs

• Customer convenience and

satisfaction



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



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



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



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)



8d. Asian Trade Tariffs 2011



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.



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



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



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



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



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



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



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



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



THANK YOU

Ir. Jaseni Maidinsa

Chief Executive Officer, PBA Holdings Bhd

General Manager, PBAPP Sdn Bhd



water supply management - mwa

Documents