SIMPOSIUM PENGURUSAN & PENGAUDITAN INDUSTRI AIR 2009

1. PENGURUSAN ASET AIR BERHAD SIMPOSIUM PENGURUSAN & PENGAUDITAN INDUSTRI AIR 2009 PAAB’S ROLES & RESPONSIBILITIES IN DEVELOPING THE NATION WATER INDUSTRY Ir Abdul Kadir Mohd Din Chief Operating Officer 2 – 3 November 2009

2. Contents Background of Water Industry Separation of Roles & Resposibilities Product of Restructuring PAAB’s Roles & Challenges PAAB’s General Procurement Procedures Summary

3. BACKGROUND OF WATER INDUSTRY

4. Background of Water Industry STAGES OF DEVELOPMENT Division of Public Works Department Waterworks Department Water Board Corporatized Bodies Privatized Bodies Previous • Perlis • Perak • Kuching & Sibu (Sarawak) • Terengganu • Laku (Sarawak) • Melaka • Kelantan • Penang • Selangor / KL • Johor • Pahang • Negeri Sembilan • Labuan • Kedah • Terengganu • Johor • Kelantan • N.Sembilan • Melaka 2009 Todate • Perlis • Sarawak (except Kuching and Sibu • Pahang • Sabah • Labuan • Kedah • Perak • Kuching & Sibu • (Sarawak) Sewerage Services was privatised nationwide in 1990’s except for Sabah, Sarawak, Kelantan & Johor Bharu Local Authority. 4

5. Chronological Event of Water Industry Restructuring 5

6. Chronological Event of Water Industry Restructuring (Cont’d) 6

7. SEPARATION OF ROLES & RESPONSIBILITIES

8. Separation of Roles MINISTRY OF ENERGY, GREEN TECHNOLOGY AND WATER STATE GOVERNMENT Water Catchments • Policy making SPAN Regulator Raw Water • Regulate • Licensing • Regulate • Licensing Lease Payments PAAB Water Asset Owner & Developer WATER OPERATORS Operation & Maintenance Lease Water Assets Supply of Treated Water CONSUMERS

9. Roles of Major Stakeholders 9

10. PRODUCT OF RESTRUCTURING

11. Product of Restructuring 11

12. PAAB’S ROLES & CHALLENGES

13. PAAB’s Roles & Challenges • Develop a “World Class Water Infrastructure” in Peninsular Malaysia and FT Labuan. • Source and obtain funding for the development of the nation’s water assets and lease such assets to water operators licensed by SPAN for operations and maintenance. • Assist the Government to restructure the nation’s water industry towards achieving the Government’s vision for efficient and quality water services. 13

14. PAAB’s Roles (Cont’d)

15. Future Challenges – Asset Coordination 15

16. Future Challenges – Increasing Water Demand Projected Domestic and Industrial Demand Year Demand (MLD) % Increase 2000 9,655 - 2010 15,285 6.0 2020 20,338 3.3 2030 24,485 3.0 2040 28,131 1.5 2050 31,628 1.2 16

17. Future Challenges – Capital Investments 17

18. PAAB’S GENERAL PROCUREMENT PROCEDURES & PROJECT ADMINISTRATION

19. Tender Administration PAAB is a company wholly owned by the Minister of Finance Incorporated. All tender procedures are subjected to Government Procedures: • Adhering to SuratPekelilingPerbendaharaan (SPP)and ArahanPerbendaharaan (AP). • Approval by PAAB’s Board of Director. • PAAB’s Procurement Manual “Generally all Works are under open tender” 19

20. FLOW CHART • Procurement Open Tender Flowchart • Consultant

21. 1 Permohonanditerima Mengkaji, menyemakdanmemprosespermohonan 2 33 Mendapatmaklumattambahan TIDAK LENGKAP LENGKAP 4 Menyediakanperakuansenaraipendek firma perundinganuntukdikemukankepadapihakberkuasamelulus PROSES SECARA CADANGAN TEKNIKAL DAN KEWANGAN (PERUNDING) 5 Kelulusansenaraipendek firma perundingolehpihakberkuasamelulus LULUS Mempelawa CTK kepadaperundingolehpihakberkuasamelulus 6 7 Menubuhkan JTKP 8 Penilaiancadanganteknikal 9 Penilaiancadangankewangan 10 JTKP menyediakanlaporandanperakuanuntukdikemukankepadaurusetia Urusetiamenyediakanperakuanperlantikandankosuntukdikemukakankepadapihakberkuasamelulus 11 TIDAK SETUJU LULUS TANPA RUNDINGAN 12 Keputusanpihakberkuasamelulus LULUS PERLU RUNDINGAN 13 AgensikeluarkanSuratNiatkepadaperunding TIDAK SETUJU 14 RundinganTeknikaldanKewangandenganPerunding SETUJU Urusetiamenyediakanperakuanuntukdikemukakankepadapihakberkuasamelulus 15 TIDAK SETUJU Keputusanolehpihakberkuasamelulus 16 17 Agensikeluarkansuratsetujuterimakepadaperunding 18 TandatanganPerjanjian 19 Bayaran

22. 1 Permohonanditerima Mengkaji, menyemakdanmemprosespermohonan 2 33 Mendapatmaklumattambahan TIDAK LENGKAP LENGKAP 4 Menyediakanperakuanperlantikanperundingandengankaedahbayaranuntukdikemukakankepadapihakberkuasamelulus TIDAK SETUJU 5 Keputusanperlantikanperundingannolehpihakberkuasamelulus PERUNDINGAN LANTIKAN TERUS (PERUNDING) LULUS Agensimengeluarkansuratniatkepadaperunding 6 7 Perundingmengemukakancadanganteknikaldankewangan 8 Agensimenubuhkan JKTP 9 JKTP mengadakanrundinganteknikaldankewangan 10 JTKP menyediakanlaporandanperakuanuntukdikemukakankepadaurusetia Urusetiamenyediakanperakuankelulusankosuntukdikemukakankepadapihakberkuasamelulus 11 TIDAK SETUJU 12 Keputusanpihakberkuasamelulus LULUS 13 AgensikeluarkanSuratSetujuterimakepadaperunding Tandatanganperjanjian 14 Bayaran 15

23. FLOW CHART • Procurement Open Tender Flowchart • Contractor

24. 1 Agensipastikansamadamemerlukanperundingatautidak JabatanTeknikal Perunding 2a 2 2b PERLU TIDAK PERLU Tentukanjenis tender 3 4 Penyediaan document tender PROSES KERJA TENDER TERBUKA BAGI KERJA PEROLEHAN (KONTRAKTOR) 5 Iklan tender 6 Penilaianteknikaldankewangan Penyediaankertastaklimat tender 7 Pembentangankertastaklimat tender kepada LPA 9 Pertimbangan LPA jikanilai tender < RM100 juta PertimbanganKem. Kewanganjikanilai tender > RM100 juta 13 10 Keputusanbersyarat Urusetiamenyediakanperakuanperlantikandankosuntukdikemukakankepadapihakberkuasamelulus Keputusanbersyarat KeluarkanSuratNiat 11 14 Keputusantanpasyarat Keputusantanpasyarat 15 KeluarkanSuratNiat 12 17 16 Adakanrundingandandapatkanpersetujuaan Adakanrundingandandapatkanpersetujuaan Kemaskinikontrak / tandatangankontrak 18 19 Pentadbiran Bayaran 20

25. NEW INNOVATION INTRODUCED IN PAAB’S TENDER AND PROJECT ADMINISTRATION • Introduction of KPI, LOS, Penalty • New Terms of Reference for Designers • Standard Bills of Quantities • Compilation of Records • Introduction of New Technology • Others • Management of WTP Residual • Establishment of Design and Research Centre • Establishment of Education Training Centre

26. New and Planned Innovation • CONSULTANCY SERVICES • 1. Introduction of: • ● Key Performance Indicator • ● Level Of Services • ● Penalty Scheme • ● Project Management Tools • ● Work Methodology

27. New and Planned Innovation (Cont’d) • CONSULTANCY SERVICES • 2. New Terms of Reference for Designers Water Industry • More comprehensive and mainly confine to Water Industry • Includes new area of services such as: • Risk Management and Crisis Management • Hazop and Hazrev • Asset Management and NRW Control System • Health Hazard & Security • Mentor-Mentee • Project Quality Plan

28. New and Planned Innovation (Cont’d) • CONSULTANCY SERVICES • 3. Initiation on the Preparation of Standard Bills of Quantities for water Industry • Cooperation with Construction Industry Development Board (CIDB). • Memorandum of Agreement Signed on 3 July 2009. • Standard Method Measurement For Water Industry

29. New and Planned Innovation (Cont’d) • CONSULTANCY SERVICES • 4. Compilation of Records • Total Asset Management System • (WTPs, Reservoir, Pump house, Pipelines etc) • Land Status and Transfer

30. New and Planned Innovation (Cont’d) • CONSULTANCY SERVICES • 5. Introduction of New Technology • Pilot Plant in Gemas • Static Mixer in Water Process • Streaming Current Meter / Detector (SCM/SCD) • Automatic Lime Use

31. New and Planned Innovation (Cont’d) • CONSULTANCY SERVICES • 6. Others • Study of Management of WTP Residual in Malaysia • Initiatives on the Establishment of Water Academy in Malaysia (in Collaboration with Malaysian Water Academy) • Initiatives in the Establishment of Design and Research Centre • Initiatives on the Establishment of Education Training Centre

32. SUMMARY PAAB adhered closely to the MoF Procurement procedures, Procurement Manual and GLC Red Book Compliance is towards good governance but not a hindrance to progress and expediency Introduction to quality services at all sectors and fields for development of good life cycle of assets Holistic approach with good transparency in execution In line with the vision of creating a Holistic, Transparent and sustainable Water Industry

33. Sg Selangor Dam – SSP3 Intake DAF Sg Selangor WTP 33