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NRW REDUCTION STRATEGIES - MALAYSIA -

overview. overview. NRW REDUCTION STRATEGIES - MALAYSIA -. CONTENTS. NRW Management in Malaysia NRW Implementation Policies Action Plan : Framing the Priorities Regulatory Function. NRW MANAGEMENT IN MALAYSIA INTRODUCTION.

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NRW REDUCTION STRATEGIES - MALAYSIA -

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  1. overview overview NRW REDUCTION STRATEGIES - MALAYSIA -

  2. CONTENTS • NRW Management in Malaysia • NRW Implementation Policies • Action Plan : Framing the Priorities • Regulatory Function

  3. NRW MANAGEMENT IN MALAYSIAINTRODUCTION • Past efforts to improve the situation have been limited due, in part, to underestimating the technical difficulties and complexity of NRW management • Through the regulatory framework under The National Water Services Commission (SPAN), NRW was further given top priority to move the NRW plans forward and make NRW reduction programme work • A special Task Force had been set to recommend an implementation strategy to drive the process for NRW reduction in Malaysia

  4. NRW MANAGEMENT IN MALAYSIATHE KEY ROLE PLAYERS • Policy • Budget allocation • Funding • Oversee project implementation KeTTHA • Regulate NRW Management and Performance of Water JBA/ PAAB SPAN Stake Holders Consultant Contractor • Planning, Design & Supervision of NRW Works • Implement NRW Works / Projects Water Operator • Operation & Maintenance of Distribution System • Management of NRW Reduction Program Note: KeTTHA: Ministry of Energy, Green Tech and Water; JBA: Water Supply Department; PAAB: Water Asset Management Limited; SPAN: National Water Services Commission

  5. NRW MANAGEMENT IN MALAYSIACAUSES OF HIGH NRW • High level of physical losses - no active leakage control in some States • Considerable commercial losses - metering inaccuracies / illegal connections • Aging and deteriorated pipe distribution system - 32% or 41,874km are of AC Pipes • Inadequate operations and poor maintenance • Weak asset management or No systematic asset management • Lack of holistic planning and implementation of NRW programmes • Poor implementation of works • Very limited investment in system • Lack of reliable data

  6. NRW STATUS(2008 – 2011) Note: *2011 Data is still under review and verification by SPAN

  7. CONTENTS • NRW Management in Malaysia • NRW Implementation Policies • Action Plan : Framing the Priorities • Regulatory Function

  8. NRW IMPLEMENTATION POLICIESNRW target of 25% nationwide by 2020 Policy 1: To be addressed in a holistic approach • Standard NRW definitions and indicators • Raise awareness and understanding of “holistic” NRW program • NRW program in a holistic manner • Use of Infrastructure Leakage Index (ILI) and Economic Network Efficiency (ENE) in the future • Policy 2: Based on “Preventive Action” and not “Reactive” • Ensure only usage of standard approved standard product • Ensure work quality by contractors and plumbers • Ensure design and work follow specifications and best practise • Regulate handing over of water system

  9. NRW IMPLEMENTATION POLICIESNRW target of 25% nationwide by 2020 Policy 3 : Sustainable and affordable Financing and Funding • Leverage on PAAB to fund and procure NRW works for migrated states under asset light model • Recommend funding options in the interim period for non migrated states • Introduce outsourcing options such as “performance based contract” for NRW works • Policy 4 : Clear Mechanism to effectively monitor NRW programmes • Regulate closely NRW as KPI • Discuss NRW performance and issues through special Task Force • Benchmark operator performance and attention to low performance

  10. NRW IMPLEMENTATION POLICIESNRW target of 25% nationwide by 2020 Policy 5 : Dedicated structure at State to implement NRW program • Restructure state Water Supply under Water Supply Industry Act (WSIA) and leverage on PAAB’s funding • Establish NRW Active Leakage Control Team in each State • Establish Support Unit in each State to focus on • GIS, Network Modelling, SCADA • Billing System • Customer Service • Materials Control • Policy 6 : Capacity building and competency requirement • Build competent and skilled staff in NRW management • Establish competency scheme in accordance to WSIA • Develop standard operating guidelines for leakage control management

  11. NRW IMPLEMENTATION POLICIESNRW target of 25% nationwide by 2020 Policy 7 : Research, Development and Innovation in NRW management • Establish NRW pilot project for evaluation • Benchmark major towns in Malaysia with international level • Cooperate with other organisations (MWA, Forum Air, AWER) and institutions of higher learning to raise understanding and awareness of NRW activities • Policy 8: Enhanced Consumer education and awareness towards NRW management and role of stakeholders • Involve NGO’s and mass media in awareness and educational program on NRW issues: • Forum Air • AWER • Media • Develop and implement Communication Plan and Consumer Awareness on NRW issues

  12. CONTENTS • NRW Management in Malaysia • NRW Implementation Strategies • Action Plan : Framing the Priorities • Regulatory Function

  13. PRIORITY ACTION PLAN 1: OPEARTORS SHOULD IMMEDIATELY ACT ON THE APPARENT (COMMERCIAL) LOSSES FOR QUICK GAIN Example • Carrying out investigations to detect and disconnect illegal connections • Offering incentives/rewards to informers of illegal users • Establishing amnesty programmes to attract back illegal consumers • Regular report checks on large customers and construction sites • Spot checks and auditing of meter readings and rotation of meter readers (every 6 months) • Identifying and replacing old and worn out consumer meters with new ones (an ongoing exercise based on the meter age database) • Prompt updating pf customer database • Effective disconnection for non-payment • Right sizing of meters Eg: SAINS & SADA had quick gains from reducing commercial losses As each component receives more or less attention, the losses will increase decrease. Operator strive to keep losses to a minimum

  14. PRIORITY ACTION PLAN 2:OPEARTORS SHOULD IMMEDIATELY ACT ON THE ACTIVE REAL LOSSES FOR QUICK GAINS Example • 24hr (standby) leak management unit • In house and external training of staff on effective leak detection, repair and monitoring • Routine programme for finding and locating non-visible leaks – mainly done at night • Encourage the public to vigorously report water leaks and bursts – with a reward for each case reported • Repairing identified leaks in < 6 hours • Computerising the leak reporting register for easy tracking and monitoring • Pressure management by installing pressure reducing valves • Routine inspection and servicing of valves and fire hydrants • Monitoring leak ‘clusters’ to help planning for mains replacement As each component receives more or less attention, the losses will increase decrease

  15. PRIORITY ACTION PLAN 3: OPERATOR TO CONTINUE IMPLEMENT AND MAINTAIN THE NRW HOLISTIC APPROACH FOR SUSTAINABLE LONG TERM SPAN to establish pilot project in selected districts for purpose of showcase, assessment of full budget requirement, evaluation of effectiveness and improvement To be supported by: • Reliable data collection and management • Customer service and complaint management • Capacity Building

  16. ACTION PLAN 4: OUTSOURCING OPTIONS – PERFORMANCE BASED CONTRACTS (PBC) An all inclusive contract with contract payments directly related to target achievement and allocates risk appropriately between the parties Necessary as project management resources and skill not available inhouse Short term investment for long term revenue increase Accelerated implementation programme Provide expert help immediately Short term mechanism to “jump-start” NRW reduction and break vicious cycle PBC is just one mechanism that can be applied for example to : - Overall holistic NRW for short term - meter management / maintenance SPAN to revisit existing PBC Agreements to come up with Model Form of Agreement

  17. OUTSOURCING SENARIO : HIGHEST NRW REDUCTION Outsourced work for “Non Revenue Water Reduction in the State of Malacca” from Dec 2007– Dec 2011

  18. OUTSOURCING SENARIO : HIGHEST NRW REDUCTION Key Enablers to Success

  19. OUTSOURCING SENARIO : HIGHEST NRW REDUCTION ACHIEVEMENT • NRW reduction from 33.9% (2008) to 22.4% (2012) • By the year 2010 there are available excess capacity of 51.5 mld due to water saved from NRW reduction, enabling new WTP construction to be deferred from year 2010 to 2013 • Reduce unnecessary investment; Based on demand need for 10 years, a new WTP to be built will be of the capacity of 80 mld rather than 115 mld if NRW have not been reduced • 14.3 Million m3 water saved made available annually; able to accommodate ~40,000 nos. of new customers; RM 15.3 million cash flow generated • Although having 37% of pipe from AC which were more than 25 years, implementing a right ALC program will result in reduction of NRW with a lower cost than total pipe replacement

  20. CONTENTS • NRW Management in Malaysia • NRW Implementation Strategies • Action Plan : Framing the Priorities • Regulatory Function

  21. REGULATORY FUNCTIONPRIMARY INSTRUMENT FOR BUSINESS PLAN • OPEX • Lease Rental SPAN roadmap towards full-cost recovery • Comply with DOE Requirement Operator • NRW Reduction • Water Quality • Efficient Maintenance Approved CAPEX Works PAAB to plan CAPEX funding and works PAAB

  22. REGULATORY FUNCTIONENSURING IMPLEMENTATION NRW has been included as one of technical aspect to be regulated by SPAN since January 2008 It is one of the KPI imposed on all water distribution operators in Malaysia NRW REGULATORY FUNTION UNDER SPAN Auditing are carried out by SPAN to monitor progress and performance All operators to submit NRW quarterly report to SPAN NRW performance are being monitored at the quarterly regulatory meeting with each operator.

  23. REGULATORY FUNCTION : SPAN’S ASSESSMENT NEEDS ATTENTION NEEDS IMMEDIATE ACTION TO BE SUSTAINED

  24. CONCLUSIONNRW REDUCTION STRATEGIES • Continuousprogram, (not an adhocfunction) to tackle complex problem which require holistic, aggressive and innovative approach • Policyof implementation to be established in driving all stakeholders towards nation objevtive • ActionPlans to execute ‘Quick Gain’ & Long Term program • Outsourcingto bridge the gaps of resources, skills, expertise and ‘Jump-Start’ implementation program • Regulatoryfunction to ensure implementation program being execute and sustainable

  25. TerimaKasihThank YouAhmad ZahdiJamilPresident of Malaysian Water Associationazahdi@ranhill.com.myThis presentation is in collaboration withNational Water Services Commission of Malaysia (SPAN)

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