Bekalan Air Pulau Pinang
Bekalan Air Pulau Pinang
Bekalan Air Pulau Pinang
FREE
PAY
“WATER PRIVATISATION SHOULD NOT BE
OPPOSED BLINDLY WITHOUT A STRONG
BASIS AS IT IS UNPROFESSIONAL,
CONFRONTATIONAL & GIVES NGOs A BAD
NAME”
WATER PRIVATISATION EXPERIENCES IN MALAYSIA
THERE ARE MORE CASES OF FAILURES IN PRIVATIZATION OF THE
WATER SECTOR IN MALAYSIA THAN THERE ARE SUCCESSES:
•SABAH is deep financial crisis and never recovered from massive
overspending and privatization resulting in a cycle of debt that caused
serious cash flow problems for the government (By the end of 2002, the
state owed RM524mil to three water concessionaires BUT such massive
debts have never happened in the old days before privatization)
•KELANTAN - Thames Water of London and the State-owned Kelantan
Darul Naim Foundation were involved but failed miserably
•INDAH WATER KONSORTIUM (IWK) - The Government had to buy back
IWK from Prime Utilities Bhd for RM192.54 million early 2000 (IWK was
awarded the sewerage treatment and management services in 1994)
•PUAS, Puncak Niaga – Viable but supported by loans from government
•Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) with PBA
Holdings, is listed on the KLSE main board. Appears successful (State
still holds majority of shares, State Water Supply Dept controls PBAPP,
professionally run, manages the entire spectrum from source to tap,
diversifying outside the country, etc.
(2) HISTORY OF PBAPP SDN BHD
Models of CSR:
The Philanthropic Model – In the United States, CSR has been defined much
more in terms of a philanthropic model
The “Greenwash” Model – In many parts of Asia many companies jump on the
bandwagon but their CSR is more greenwash than anything concrete.
CSR is about how companies manage the business
processes to produce an overall positive impact on society,
while at the same time minimizing the negative impacts, as
shown in the Figure below:
(4) CORPORATE SOCIAL RESPONSIBILITY OF
PBAPP SDN BHD
•PBAPP has fully committed itself towards its Corporate
Social Responsibility by contributing towards water
conservation and supporting as well as working closely
with NGOs, especially Water Watch Penang (WWP)
(www.waterwatchpenang.org) in its conservation
programmes
•PBAPP is committed to share its profits with its employees
& the public via Share Offers on the Stock Exchange
•PBAPP has achieved ISO9000 Quality Standards
•PBAPP has achieved and maintained ISO14001 Standards
•PBAPP is willing to share its success & experience with
other water companies
•PBAPP has funded other Social Programmes
Partnership with NGOs
Annual Water Conservation
Programme – PBAPP carries out
an annual water awareness &
education programme with
Water Watch since 1999
14
EXAMPLE: YOUTH ACTION FOR WATER PROGRAMME 2001
Activities
PUBLICATIONS ON WATER CONSERVATION
PRODUCTION
OF VCD ON
WATER
CONSERVATION
NETWORKING
Penang
Botanic
Gardens
Networking with Local & Regional
Organisations
• Sustainable Penang Initiative
• MyWP
• Penang National Park (Achieved 2003]
• USM (RCE PENANG)
• UNDP
• WWF Malaysia
• MENGO
• JBA, JPS, PDC, DID, DOE & OTHER GOVERNMENT DEPARTMENTS
“WWP SCHOOL ACTIVITIES – CARING FOR OUR RIVERS CAMPAIGN”
Monitoring River
Water Quality &
Collecting Water
Samples for
Testing
WATER SAVING CAMPAIGNS
WATER DEMAND
MANAGEMENT
WORLD WATER DAY
CELEBRATION EVERY YEAR
SINCE 1999
PBAPP-WWP-N PARK RA “WATER DEMAND
MANAGEMENT PROJECT” 2007
N-PARK RESORT CONDOMINIUM
KEY PERFORMANCE INDICATORS OF PBAPP SDN BHD
BEST WATER SUPPLY COMPANY IN
MALAYSIA:
•PROFITS
•EFFICIENCY (ISO9001)
•TRANSPARENCY & PUBLIC
ACCOUNTABILITY
•ENVIRONMENTAL STANDARDS (ISO14001)
•MINISTER OF ENERGY, WATER &
TELECOMMUNICATIONS ANNOUNCED THAT
ALL WATER SUPPLY COMPANIES SHOULD
FOLLOW PBAPP’S MODEL & EXAMPLE
•PBAPP IS EXPANDING OVERSEAS –
CURRENTLY PROJECTS IN CHINA, MIDDLE-
EAST, SOUTHEAST ASIA.
LOWEST WATER TARIFFS IN MALAYSIA
State Domestic Rate (Average for1st 35m3) Industrial Rate (Flat/Base Rate)
Sabah 0.90* 0.90
Labuan 0.90 WHY? 0.90
Perak 0.67 1.20
Sibu 0.62 •Tariffs controlled by 0.97
Kuching 0.62 Government 0.97
Sri Aman, Miri, 0.62 0.97
Limbang, Sarikei, Kapit •NGOs have a say
Melaka 0.59 1.40
Perlis 0.57 •Share Holders have a 1.30
Sarawak 0.56 say 0.95
Bintulu 0.55 1.21
Selangor 0.55 •Industry has a say 1.20
Negri Sembilan 0.55 1.00
Kedah 0.53 •Chief Minister has the 1.20
Johor 0.53 1.20
Terengganu 0.44 final say 1.15
Kelantan 0.31 0.70
Pulau Pinang 0.31 0.90 *
* Ringgit
(Source: Water Water Association)
LOWEST NON-REVENUE WATER (NRW) RATES IN
MALAYSIA
MALAYSIA
= 40 %
(5) CONCLUSION
•The PBAPP example proves that privatization of
water is not necessarily bad, although the majority
of cases have failed in Malaysia
•Privatisation can be successful if carried out in a
transparent, accountable & professional manner
without political or other interventions
•Privatised water companies should embrace CSR
as a core business function (Government should
make CSR mandatory)
•Water companies must not view CSR as a liability
but as an opportunity to make more money
•WATER IS EVERBODY’S BUSINESS: GOVERNMENT-
INDUSTRY-NGO-PUBLIC
TERIMA
KASIH
www.pba.com.my
www.waterwatchpenang.org