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WATER SUPPLY IN THAILAND. SECTOR POLICY. - ENCOURAGE PRIVATE SECTOR INVOLVEMENT - IMPROVE ENVIRONMENTAL STANDARDS - PROVIDE BASIC NEED IN POVERTY AREAS - UTILIZE LOW-COST AND APPROPRIATE TECHNOLOGY. SECTOR INSTITUTIONS. SECTOR SITUATION. WATER SUPPLY.
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SECTOR POLICY - ENCOURAGE PRIVATE SECTOR INVOLVEMENT- IMPROVE ENVIRONMENTAL STANDARDS- PROVIDE BASIC NEED IN POVERTY AREAS- UTILIZE LOW-COST AND APPROPRIATE TECHNOLOGY
SECTOR SITUATION WATER SUPPLY AGENCY COVERAGE CAPACITY URBAN AREAS MWA 75% OF 8 MILLION 3.2 MCMD PWA 72% OF 12 MILLION 2.98 MCMD (225 WW’S) OTHERS 70% OF 3 MILLION 0.2 MCMD INDUSTRIAL AREAS EAST WATER EASTERN SEABOARD IEAT 18 INDUSTRIAL ESTATES RURAL AREAS GOV’T DEPT’S PIPED SUPPLY IN 8,000 VILLAGES NON-PIPED IN 56,000 VILLAGES
SECTOR SITUATION SEWERAGE AGENCY COVERAGE CAPACITY BMA 90% OF GREATER 1 MCM / D BANGKOK (158 SQ KM) BY 2000 LOCAL GOV. OTHER CITIES PWD, PCD IEAT INDUSTRIAL ESTATES
POPULATION IN URBAN AND RURAL AREAS URBAN MWA 8 MIL PWA 12 MIL OTHERS3 MIL RURAL 39 MIL
PWA 73 PROVINCES647 MUNICIPAL AREAS6,946 SQ.KM.8.6 MILLION POPULATION SERVED MWA 3 PROVINCES1,621 SQ.KM. PWAMAPAREAS
STATISTICS MWA
MWA OPERATION HIGHLIGHT YR 2001 • WATER PRODUCTION (Mill.cu.m.) 1,415 • WATER SALES (Mill.cu.m.) 857 • SERVICE AREA (Sq.km.) 1,148 • NO.OF CONNECTION 1,384,958 • AVERAGE MONTHLY WATERCONSUMPTION PER CUSTOMER(cu.m / Month ) 51.6 • AVERAGE WATER CHARGE(Baht/cu.m.) 10.42 • NO.OF STAFF 5,312
PWA population servedyr 2001 PWAcustomers8.62 mill. population in Thailand 62 Mill populationin urban areas23 Mill. population in service areas 11.93 Mill.
PWA STATISTICS YR 2001 • NO. OF WATERWORKS 225 • NO. OF CONNECTIONS(MILL.) 1.72 MILL. PERSONS ~8.6 • NO. OF STAFF 6,458 • WATER PRODUCED(MILL.CU.M./YR) 704 • WATER SOLD (MILL.CU.M./YR) 474 • CAPACITIES(MILL. CU.M./DAY) 2.983 • CUSTOMER:POPULATION(IN SERVICE AREA) 72 % • TARIFF RATE (SATANG/LITER) ~1
PSP OPTIONS • PUBLIC OWNERSHIP1) Service contract2) Management contract3) Lease contract4) Concession • PRIVATE OWNERSHIP5) BOOT (Build-Own-Operate -Transfer)6) BOO (Build-Own-Operate)7) Reverse BOOT8) Joint ownership9) Outright sale
PWA’S PRIVATIZATION PROGRAM • COMPLETED - PATHUM THANI - BOOT- EAST WATER - SUBSIDIARY- RATCHABURI - BOO- PHUKET - BOO- SATTAHIP - LEASING CONTRACT
PWA’S PRIVATIZATION PROGRAM • COMPLETED - WESTERN PERIPHERY OF BANGKOK - BOO- CHACHOENG SAO - BOOT- BANGPAKONG - BOOT- NAKHON SAWAN - BOOT- PATHUM THANI - MANAGEMENT (LOSS CONTROL) CONTRACT
PWA’S PRIVATIZATION PROGRAM IN PROGRESS- PATHUM THANI- - CONCESSION RANGSIT - RAYONG - BOOT
PATHUM THANI WATER BOOT CONTRACT SIGNED 31 AUG 1995 CONTRACT PERIOD 25 YEARS++ CONTRACT VALUE 4,300 MB OPENED 25 SEPT 1998 TOTAL CAPACITY 288,000 CMD MINIMUB PURCHASE 140,000 220,000 CMD SHAREHOLDERS - THAMES WATER - CH. KARNCHANG - BERLI JUCKER - PWA - THAI CAPITAL RICE - KRUNG THAI BANK - THAI MILITARY BANK
SELECTION CRITERIA • TECHNICAL • FINANCIAL • - “LOWEST BID” • - “TRUST” OR “REPUTATION”
SOME CONSIDERATIONS INCENTIVES . EXEMPT ON IMPORT DUTIES . TAX HOLIDAY GUARANTEES . MINIMUM PURCHASE EQUITY LIMIT . NO LIMIT FOR WATER & SEWERAGE SECTOR PROFIT REPATRIATION . NO RESTRICTION RATE OF RETURN . NEGOTIABLE BUT MUST BE REASONABLE EVALUATION OF TENDERS . TECHNICAL ASPECT . FINANCIAL ASPECT
MAIN CONTRACT PROVISIONS • DEMAND ESTIMATES • QUALITY OF SERVICES • PENALTIES FOR BAD SERVICES • WORK FORCE • CAPITAL INVESTIMENT PLANS • RATES • ARBITRATION • RELATION WITH CONSUMERS
The Cabinet’s Resolution to EstablishEAST WATER Cabinet’s Resolution12 Sep 1992 The RoyalIrrigationDepartment (RID) The ProvincialWaterworksAuthority (PWA) to continue its role as todevelop raw water resources & reservoirs to establish a new company Eastern WaterResources Developmentand ManagementCompany Limited to be responsible for the development and operation of the raw waterdelivery system in Thailand’s eastern seaboard
East water’s Pre and Post PrivatizedShareholding Structure PRE PWA 100% (10 m B) EAST WATER POST PWA IEAT PRIVATE LOANS 44% 5% 51% B 2,000 mEAST WATERB 500 m B 2,000 m ~ B 4,500 m for 3 Projects
PERCEIVED BENEFITS TOTHE STATE AND THE PUBLIC THE STATE * RELIEVED FROM FINANCIAL BURDEN * RECEIVES “RETURN” ON INVESTMENTS - REVENUE AND PROFIT SHARING - TAXES - RAW WATER FEE * RECEIVES DIVIDEND AND OTHER PAYMENTS FOR SUPPORTING (SOCIAL) PROGRAM THE PUBLIC * BETTER SERVICE * MORE RELIABLE SYSTEMS * QUICKER IMPLEMENTATION * POSSIBLY LOWER TARIFF
MWA LISTING ? SPLIT INTO LISTING ? 2AREAS?
PWA LISTING ? SPLIT INTO LISTING ? 5AREAS?