Revolutionizing Water Management in Malaysia

1. Revolutionizing Water Management in Malaysia This paper shall discuss public private partnership as one of effective project implementation method and geospatial technology as a promising and evolving technology to meet and overcome the global water challenges.

2. ISSUES & CHALLENGES TO WATER SUPPLY • Finite water resources and unequal distribution (If all the earth's water fit in a gallon jug, available fresh water would equal just over a tablespoon) • Climate Change resulting prolong drought, extreme flood, change in river yield • Global population is expected to reach 8 to 9 billion by 2050, future water stress more due to increasing population and rapid development • Rapid urbanisation and unplanned urbanisation contribute to water resource pollution • Poor governance of the river basin and its eco-systems • Inadequate financing

3. WATER CYCLE EFFECTS OF CLIMATE CHANGE TO WATER CYCLE • PRECIPITATION • EVAPOTRANSPIRATION • SURFACE RUNOFF • CHANGE IN VEGETATION • INFITRATION • RIVER FLOW etc • GROUND WATER • SEA LEVEL

4. Expected capital works programe for the next 4 decades, source works at RM 3.3 billion, assuming per capita demand will decrease to 180 litres in year 2050

5. What are the Risks ? • Water scarcity can become the major limiting factor to growth. International Food Policy Research Institute (IFPRI) reported that 4.8 billion people – more than half the world’s population – and approximately half of global grain production will be at risk due to water stress by 2050. • The study also found that 45% of total GDP ($63 trillion) will be at risk due to water stress by 2050, which is 1.5 times the size of today’s entire global economy

6. Water Scenario in Malaysia • Basically water is a state matter - the ownership and control of rivers and canals and the water remains with the state. • Water Supply Act WSIA 2006 –Regulate Treated Water Services in West Malaysia & Labuan • State Governments responsible for the development, operation and maintenance of water supplies. • Federal Government provides soft loans to State Governments for public water supply infrastructure and grant for rural water supply development. • PAAB (MOF Inc.Company) provide finance and leasing for a specified period

7. MALAYSIA WATER SUPPLY KEY STATISTICS (by the end of 2012) • T/Plant Installed Capacity 17,901 Mld (design), 15,145 MLD (production) • Present Demand 14996 Mld. • Overall National Water Coverage 95 %. • Population : 28.25 Million (2010) • Future Population: 47 Million (2050) 461 operated treatment plants Length of water mains in service is 134,495 km with Number of connections is 6.83 million MINISTRY OF ENERGY, GREEN TECHNOLOGY AND WATER MALAYSIA

8. Fostering public-private partnership against global challenges • Lacking required fund & to reduce budget deficit, the government not able to fund the cost of construction, operation and maintenance of infrastructure works based on its tax collection. • Thus, PPP becomes an option to meet such funding, and offers win-win solution for the public, private and members of the community.

9. BENEFITS OF PPP • Efficient use of public assets/facilities • Optimal whole life cycle costing Private sector will optimize whole life cycle cost of a project leading to lower CAPEX & OPEX • Optimal sharing of responsibilities between the public and private sectors • Third party due diligence The lender to the PPP programme will normally check the viability of the project which could be beneficial to the Government • Low life cycle cost will allow lower service charge, which will benefit the public. • Would optimize the utilization of scarce resources. • Generate new business opportunities to the private sector - positive impact on the GDP.

10. The Range of Stakeholder Interests in PPPs Maximize revenue Provide universal access to service Ensure affordable basic service Promote fair competition Attract investors Improve public welfare Government Employees Consumers Ensure fair treatment of present employees Provide career opportunities Improve productivity, efficiency and morale Ensure fair pricing Improve quality and reliability or service Increase accountability and responsiveness Stakeholder Interest Investors Ensure stable, transparent regulatory process Enable organizational restructuring and assest allocations that favor efficient operations Provide trained human resources Generate more investment opportunities

11. Geospatial technology as solution • Continuously evolving geospatial technology introduce innovative /optimal solution to meet the government’s objective and at the same time bring down a project cost. • Other core management systems such as customer service, financial, maintenance management, performance modeling, capital improvement planning, construction, and so forth, can be fully integrated and leverage the GIS in order to achieve maximum efficiency in water operations. • GIS integration with other core systems could provide map-based secured user access to essential, timely, utility information to internal staff, other agencies, and public users. • Using GIS analysis and geoprocessing capabilities shall enhance daily / monthly / annual staff operations, activities, workflows, and planning.

12. Eg.GIS Related ‘Total & Integrated Water Management’ approach, for maximum efficiency and optimal solutions Water supply and demand management Efficient emergency response plan during drought & flood Major pipe network connectivity during crisis. How to divert pipe flow from unaffected area to affected area (eg flow from neighbouring areas, district, states)

13. Labuan Water Supply-GIS ULTIMATE WATER UTILITY MANAGEMENT SYSTEM GIS SCADA Aset & Inventory Info System Non Revenue Water Water Crisis Management Sys. Water Billing System Customer Complaint & Support System Water Network & Operation Management Sys. Water Resource Management Sys. Water Quality Surveillance Planning Water Maintenance Management Sys. NETBASE

14. Conclusion • Continued application and improvement of geospatial technology in water supply planning and operation will lead to total water supply management, providing optimal solutions while ensuring adequate water supply system in terms of quantity and quality. • A defined strategy and road map to achieve improvement through PPP is required in order to provide clarity and certainty about the operating environment to private sector operators, which is crucial for sizable investments and long payback periods inherent in infrastructure projects. • Most appropriate approach to communicate and foster PPP is through an interactive dialogue with all stakeholders.