national water services industry restructuring

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Core components of National Water Services Industry Restructuring (NWSIR):

Asset Light Model

Restructuring of water services industry is aimed to ensure water operators place their priority in delivering good water quality and services quality. Water Operators do not need to worry about financial burden, debt (liability) and new water services infrastructure development projects. Their duties will be bound to operating, maintaining, and carry out the core responsibility, which is supplying safe and continuous supply of water to the people efficiently.

Prevents Any Type of Concession Agreement In Future

Concession agreements have caused too many issues in national water services industry. WSIA (Water Services Industry Act 2006) does not encourage any type of concession agreements. Through National Water Services Commission (SPAN), operation license will be given with Key Performance Index (KPI). Such licenses will only be renewed every 3 years with the condition that the water operator fulfills KPIs set by SPAN.

Enforcement by SPAN

SPAN will regulate water operators in terms of technical, service quality and profit. Pengurusan Aset Air Berhad (PAAB) which is a wholly owned company by Ministry of Finance, will also licensed by SPAN to manage water assets. PAAB is regulated by SPAN in terms of technical, service quality and profit as well to protect people’s interest.

Full Cost Recovery

Till date, the liabilities in water services industry are ever increasing. This has deterred many water infrastructure and technologies developments for the need of future generation. ‘Unpaid Debts’ like this will burden our descendants if left unresolved. The Asset Light Model and Full Cost Recovery approach together will protect the people’s well being and ensure Water Supply Security (a component of national security) is achieved.

Reasonable and transparent water tariff

SPAN and Ministry of Energy, Green Technology and Water (KeTTHA) will ensure that the tariff does not burden the people. Formation of PAAB will reduce the liability burden while increasing the standard of water services industry via continuous development of water services infrastructures. Through WSIA, water services industry will be transformed into a stable economic sector and not ‘high profit’ oriented like private sector. In near future, all of us also can participate in tariff setting process. Such process is practiced in OFWAT Model from United Kingdom which was the reference model for the formation of SPAN and WSIA. A transition process will be put in place to encourage members of public to participate in tariff setting process.

There is also an immediate need for Sabah and Sarawak to follow suit the NWSIR process to ensure water security.














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