ISSN: 1675-2392 KDN No. PP 6646/03/2013(032826) Issue No. 28

The Malaysian Water Association Quarterly

INSIDE....Avoiding Water Crisis in Malaysia - Lessons for the Future

Exclusive Inteview With Dato’ Teo Yen Hua, Former CEO of SPAN

Selangor Water : Legal Issues and Challenges

Why Water Presents Special Challenges: A Brief Rationale for Water Resource Economics

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Water MalaysiaThe Malaysian Water Association (MWA)No. 24 Second Floor, Jalan Sri Hartamas 8, Taman Sri Hartamas, 50480 Kuala Lumpur, MALAYSIA.Tel: +603 6201 2250/9521 Fax: +603 6201 5801 Website: www.mwa.org.my

MWA Council for 2013/2015 Session

PresidentIr. Syed Mohamed Adnan AlhabshiDeputy PresidentIr. V SubramaniamVice PresidentsMr. Sutekno bin Ahmad BelonProf. Ir. Hj. Mohamed Haniffa bin Abdul HamidImmediate Past PresidentMr. Ahmad Zahdi bin JamilHon. Secretary GeneralIr. Hj. Mohmad Asari bin DaudHon. Treasurer GeneralDato’ Ir. Hj. Zainal bin Bachik

Ordinary Council Members

Mdm. Amy YewIr. Zulkiflee bin Ab HamidIr. Beh Hong LinIr. Tham Yee KiongIr. Ong Guan HockIr. Lim Soon GuanMr. Mansor bin Abdul GhaniMr. Sofian bin SallehMr. Shaharis bin SaadMr. Mohamad Hairi bin BasriMr. Shamsul Fahmi bin Mohd PadzliProf. Dr. Zulkifli bin YusopDr. Norhayati binti Abdullah

Editorial Committee Members

Ir. Syed Mohamed Adnan AlhabshiIr. Ong Guan HockMr. Sofian SallehMr. Lee Koon YewMs. Rubby Mahmod

Cover PictureA close-up view of the Sungai Selangor Dam that taps the biggest catchment and last major water resource available in the state of Selangor. It supplies sufficient raw water to more than 2 million consumers in the Klang Valley and the Federal Territories of Kuala Lumpur and Putrajaya.Photo credit: Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH)

DisclaimerThe Malaysian Water Association (MWA) quarterly bulletin (“Water Malaysia”) is provided as a service to our members. The articles written by various authors and news from external sources are published in good faith for the benefit of our readers and do not necessarily reflect the views of MWA. Further, we give no assurance or warranty that the published information is current or accurate and take no responsibility for any losses or consequences arising from its transmittal through the bulletin.

Published on behalf of MWA by:Asian Water Magazine, SHP Media Sdn Bhd1203, 12th Floor, Block E, Phileo Damansara 1,No. 9, Jalan 16/11, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.Tel: +603-7960 1148 Fax: +603-7960 1152

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REGULARPresident’s Desk

COVER FEATUREAvoiding Water Crisis in Malaysia - Lessons for the Future

MWA ACTIVITIESMWA 26th Annual Dinner & Water Leaders’ ForumIWA Lisbon Water Congress, Lisbon, PortugalTechnical Visit to ALS Technichem (M) Sdn BhdWorkshop on Dam OperationTechnical Visit to Merck (M) Sdn BhdWater Loss Asia & The NRW Leadership ColloquiumMWA & Bentley Seminar MWA-Arachem SeminarCePSTPO Training

EXCLUSIVE INTERVIEWWith Dato’ Teo Yen Hua, Former CEO of SPAN

FEATURED ARTICLES Water Resources Management : Identifying Synergies in Theoretical Approaches Selangor Water : Legal Issues and ChallengesWhy Water Presents Special Challenges: A Brief Rationale for Water Resource EconomicsUsage of Stormwater in Downstream River Basin as a Source for Treated Water Supply Positive Dam Operation ManagementA Simple Method for Dam Water Volumetric Modelling

YOUNG WATER PROFESSIONALSIWA Young Water ProfessionalsMalaysia Young Water Professionals Event Preview of the 2nd IWA Malaysia YWP Conference 2015

NEWS HEADLINES SUMMARY

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President’s Desk

Dear Members of MWA,

As I write this message for the last issue of Water Malaysia for 2014, my mind is still fresh on matters raised with Dato’ Seri Panglima Dr Maximus Johnity Ongkili

during MWA’s 26th Annual Dinner, as well as the discussion that took place during the Water Leaders’ Forum titled “Avoiding Water Crisis in Malaysia – Lessons For The Future” moderated by Tan Sri Omar Ibrahim, which was held in the afternoon before the dinner.

The discussion during the forum was frank and intense, reflecting the wealth of knowledge and maturity amongst water players in the country. Many issues were raised and deliberated from different angles and perspectives. It appears that we all have to embrace the complexity of the situation and find ways to strategize on the most effective method to improve the situation.

As suggested by the CEO of IWK, Dato’ Abdul Kadir Mohd Din, the matters discussed at the forum need to be brought to the attention of the highest level of the Government. I also made a passing remark to Dato’ Seri during the Annual Dinner and his response was positive.

Following my discussion with senior members of MWA and our Executive Director, it appears that the issues raised during the Leaders’ Forum need to be packaged with an attractive tagline to attract the attention of policy makers at all levels. It was decided that as a start, the tagline “Water Security – A National Agenda” would be promoted by MWA whenever the opportunity arises and it was further agreed that a presentation to the Prime Minister and Deputy Prime Minister would be necessary. We hope the word “National Agenda” will take us far in this mission.

Since it is the year-end again, it is an appropriate time to pause, take a step back and evaluate what MWA has contributed to the industry and its members. Our members have collectively amassed a wealth of knowledge and experience over the years, and thus the challenge is for us as a body to tap, facilitate and articulate this and put it to good use for the betterment of the industry.

On the current flood situation in Malaysia, MWA expresses its sympathy for the worst-ever-flood victims, with more than 200,000 displaced, especially those from the east-coast states of Peninsula Malaysia. We also extend condolences to the relatives and friends of the victims of the Air Asia’s Surabaya-Singapore flight QZ8501 which crashed in the Java Sea near Pangkalan Bun, South West Borneo.

On behalf of MWA Council Members and the MWA Secretariat, I would like to wish all our members a Happy New Year and hope that they stay safe during this festive and holiday period. MWA looks forward to another exciting and challenging year in 2015.

SYED MOHAMED ADNAN ALHABSHIPresident

Three Countries To Send Humanitarian Aid – HishammuddinSource : BERNAMA Defence Minister Datuk Seri Hishammuddin Tun Hussein has stated that three countries have agreed to send humanitarian aid to help Malaysia following the devastating floods which hit several states recently.

He said Singapore had supplied water purifying machines to be used in flood hit states while China would be sending tents for flood victims to use.

“The United States has contacted Malaysia to find out the requirements needed to help the flood victims.

Destruction to Government property in Kelantan, was estimated at RM932.4 millionSource : BERNAMAThe Deputy Prime Minister said, to date, destruction to public property belonging to the government in Kelantan, was estimated at RM932.4 million involving government buildings, hospitals, police stations and roads.

Muhyiddin said after the post-flood (programmes) were over, the government would focus on measures to tackle the floods such as deepening of rivers and constructing flood mitigation projects.

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Avoiding Water Crisis in Malaysia :Lessons for the Future

IntroductionGenerally, water crisis is an outcome of a threat to water resources causing water scarcity. More specifically, the threat of a water crisis affecting the people directly is realised when there is not enough potable water for use and consumption. Water scarcity is, therefore, driven by two major factors: growing freshwater (or potable water) use and depletion of usable freshwater resources.

Globally, water scarcity can be a result of physical or absolute water scarcity, where scarcity is mainly due inadequate natural water resources (also referred to as water-stressed) usually occurring in arid areas of the Middle East and Central Asia or economic water scarcity, as a result of inadequate management of the sufficiently available water resources, like in most abundant water resources countries in South-East Asia.

According to the United Nations Development Programme (UNDP), economic water scarcity is found to be more often the cause of countries experiencing water scarcity as most of these countries have enough water to meet domestic, industrial, agricultural, energy production and environmental needs but lack of the means to provide it in accessible and sustainable manner.

Very often, planning to effectively overcome the threat to water resources is usually ‘supply driven’, meaning whenever there is a ‘shortage’, the solution relies on the capital investment in new structural works and treatment facilities. For this reason, innovations in the water sector in terms of ‘demand management’ are rather limited. Water conservation measures are often perceived only as drought relief mechanisms that result in reduced service levels (UN-HABITAT, 1999). Further, this ‘supply driven’ approach adopted in most developing countries has been criticised because the cost of developing new sources or expanding existing sources is getting higher as most accessible water resources have already been tapped (UNESCO, 2003).

The recent water crisis in Selangor, Federal Territory of Kuala Lumpur (FTKL) and Putrajaya could provide an important lesson on the need to promote Demand Management aspect in economic scarce water management and the possibility of integrating all sectoral water resources management into the process of Integrated Water Resources Management (IWRM).

The Water Crisis in Selangor and FTKL and PutrajayaDuring the water crisis, supply of water could not meet the full demand of

water required. Water resources recharge into the river system is inadequate and under the circumstances more water stored behind dams had to be released to augment the supply. Due to this prolonged drought, the drawdown in dams, especially the largest one at the Sg. Selangor, had depleted to a danger level. Water rationing was imposed on 27 February 2014, affecting more than 1.3 million households apart from businesses and industries. The overall reduction in supply was 10% of the total demand.

This is a case where shortage of potable water supply is not entirely due to inadequate capacity of Water Treatment Plants (WTPs) and distribution infrastructure. It is due, mainly, to inadequate water resources recharge. It is also due to environmental issue namely pollution (exacerbated by low flows) of river water sources by industries and poorly operated sewerage treatment plants and also indiscriminate waste disposal by the public that consequently forced shutdowns of WTPs. Under the circumstance, the Water Supply sector will have to stretch the availability of the depleting storages and reduce wastages in the system. End users are forced to reduce consumption or seek alternative relief. Had the drought situation worsened, the agricultural sector would need to brace for irrigation supply cuts.

Dams, therefore, perform a vital part in enhancing “Water Security” – to build up water supply reserve, drawdown on the reserve when needed, control and limit further drawdown when reserve shrinks to danger level, to stretch water availability period in times of prolonged drought situation with the hope of timely

By: Tan Sri Dato’ Ir Syed Muhammad Shahabudin, FAScChairman, SMHB Sdn Bhd datosyed@smhb.com

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reserve replenishment from the next cycle of rainy season as shown in the following Figure 2. The industries and public could help in holding the dam reserve longer by practising reduced consumption as a culture but this aspect of water security and demand management effort are still not well inculcated amongst the public as a whole.

Water rationing was lifted with effect from 1 May 2014. An important lesson would have been learnt during the rationing period by the public and the industries which had to “cooperate” by reducing consumption and wastage, a culture promoted in WDM to be practiced at all times even outside drought period.

The long-term social and economic impacts of this situation have yet to be evaluated but in the mean time this situation does illustrate the need to understand and appreciate the concept of “Water Security” in a fast developing nation. It also highlights the vulnerability of existing management systems and the level of inter-sector dependency.

Now is the time for water managers to seriously push for the need to implement IWRM and WDM within sector and inter-sector. This drought situation will recur and can happen anywhere in the country. It could be more frequent and severe with Climate Change impacts. It is just a matter of time and when this happens, water managers and end users should be prepared to respond effectively.

This case also highlights glaring inadequacies in applications of IWRM that was accepted for adoption by the Government more than twenty years ago. However, there are States that have made significant move for IWRM by establishing a single, high level, multi-disciplinary institutional leadership. Lembaga Urus Air Selangor (LUAS) and Sarawak Water Resources Council (SWRC) are good examples of a State level “water institutional integrator”. By the same reasoning, there is now a necessity for a similar institution at the highest Federal level: integrating support from Federal Ministries of KeTTHA, NRE, MOA and MOHLG with linkages to National Security Council and National Water Resources Council. Such as institution, as shown in Figure 2, would provide continuous IWRM

and WDM support in the interest of National and State water security including ensuring the provision of high service levels in water and water resources management practices, notably water conservation and water related businesses.

Water rationing is not the only solution to be used when there is shortage of water due to prolonged drought. Water restriction should always be practiced at all times in accordance with IWRM and WDM principles. In the case of Selangor, FTKL and Putrajaya, much can be achieved if Non-revenue Water (NRW) can be reduced from the current national average of 36.4% to 25% (a reduction of around 11%) and the national average domestic consumption (in litres per capita per day) reduced from 212 to 180 (a reduction of nearly 20%). It would not of course, be easy but certainly not impossible to achieve! Should WDM be vigorously practiced, by the above assumption, about 30% reduction in water demand would have been achieved and “enforced” or “involuntary” water rationing of about 10% water reduction of total demand would not have been necessary.

An obvious comparison could be made with Australia and Singapore, two water scarce countries, which have not resorted to water rationing in recent times, even in severe drought conditions, because they practice water restriction at all time by adhering to IWRM and WDM practices.

Threat of water shortages (the supply-demand gap)Up until recently we have had the luxury of having far more water and land available than we needed. Supply has been far more than demand. Regionally, however, the situation is not as “luxurious” in Peninsular Malaysia. The states of Perlis, Kedah, Penang in the north, Selangor, Federal Territory of Kuala Lumpur (FTKL) and Putrajaya in the central region and Melaka are already facing uncontrolled flow water deficits that borders on unsustainable development conditions, as shown on Table 1 and reported in the National Water Resources Study 2000-2050 (Reviewed 2012) (NWRS 2012).

As it so happened, one of the regions, Selangor, FTKL and Putrajaya, the most developed part of the country where about 25% of the population resides, was facing

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drought condition since towards the end of 2013. This has invoked a schedule water rationing imposed on 27 February 2014 and lifted on 1st May, 2014. Some parts of the country were also affected notably in Johor, Negeri Sembilan and Perak albeit on a confined scale.

The threat of water shortages situation is mainly due to unsustainable land and water use practices which have contributed to the degradation of the water resources base and are undermining the primary investments in water supply, energy and irrigation infrastructure, and often contributing to loss of biodiversity. Figure 3 shows the experience of rapid and extensive urban development in the Klang Valley over a 20-year period (1988-2004) and nearing land development saturation point

Another aspect of degradation to water resources is due to pollution to rivers in built-up areas mainly from discharge of sewerage wastes causing ammonia level to increase above the level permitted by the Health Ministry during a dry, low flow period. The operation of two treatment plants at the Sg. Langat in Selangor ceased operation on a few occasions during the water rationing period when the ammonia reading reached 4.2 parts per million (Ministry of Health limit is at 1.5 parts per million)

As an example, the photograph below shows how uncontrolled large-scale agricultural development (vegetable farming) had damaged land, water and environment in the Lojing Highlands.

Overall and on a National perspective, only two States (Sabah and Sarawak), are categorized as having

“Low Vulnerability” Index and even then at just above the “Moderately Vulnerable” category. None of the States in the Peninsular are categorized as “Low Vulnerability” and that of these; four States are already in the “Vulnerable” category, as shown on Figure 4.

With rapid increase in population in regions opened up for development in the country, it is to be expected that threat of water shortages will take place unless the principles of IWRM are put into practice and with this to transform the Nation and State water management emphasis from Supply Management to Water Demand Management (WDM).

Although the Government has adopted the principles of IWRM since more than 20 years ago, its

implementation has not been significant. Sectoral approach, as opposed to the integrated approach, thrives well when the country is at development stage and in situation when water is plentiful. Over time, the respective water resource developers, like Agricultural Sector and Water Supply Sector, gained dominance in water management over the other sectors. Since water resources come under state control, it is imperative that the states must play a dominant role in IWRM implementation.

With the launching of the National Water Resources Policy (NWRP) for Malaysia, on 24th March 2012, asserting that “the security and sustainability of water resources shall be made a national priority to ensure adequate and safe water for all ….”, at least, a positive step is made towards effective implementation of sustainable management and development in national water resources.

Managing supply and demand for future water securityIt is generally accepted that to manage water resources and demand, there is no alternative to IWRM and WDM respectively. Measures that can be taken to improve the sustainable supply of water should be identified and quantified, across all economic sectors, including the rehabilitation or new construction of supply infrastructure, improvement of storage or recharge. Similarly, a range of possible measures to reduce or otherwise modify water demand should be identified, with a quantitative assessment of their volumetric impact per year and the unit net costs or savings of introducing and applying such measures in ringgit per unit volume.

Apart from the environment, the two biggest consumers of water are agriculture (70 to 80% of total water usage) and water supply for the remainder.

For water supply services in Malaysia, marked improvements have been made in water demand, calculated based on metered measurements made at water treatment plants and consumers’ meters. There is room for improvement to eventually achieve the much desired results set by the National Water Services Commission (SPAN) for Peninsular Malaysia and Labuan and the State Governments of Sabah and Sarawak. Reducing water loss (eg. non-revenue water) in water

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supply systems to acceptable levels (eg. less than 25%) serves as more immediate water and cost savings. Similarly, reduction in domestic water usage (eg less than 180 litres per capita per day) results in substantial water and cost savings. This is best illustrated in the two regions already facing uncontrolled flow water deficits, shown in Table 2 and 3.

Irrigation water savings within the Agriculture Sector would provide substantial relief of supply for other sectors particularly for the Water Supply and Environment Sectors. For example, if the irrigation efficiency in MADA Granary were raised to 75%, then the total irrigation supply would be reduced by 105 mcm/year, an equivalent to a relief

of 288 MLD for the water supply industry. This saving in irrigation represents nearly 25% of the water supply requirements of the population in the three “water deficit”

States of Kedah, Perlis and Pulau Pinang.Many countries, including Malaysia, are

already experiencing water scarcity during dry seasons and in certain catchments. Such occurrences will become more frequent with advancing climate change. Climate change is likely a destabilising effect on water systems. Extreme weather events will be more frequent over longer periods bringing greater urgency to create and maintain strategic water storage for surface water as well as groundwater. Crop yields on rain-fed land are likely to decrease and new crop varieties may need to be developed and introduced.

Most developing countries have suffered from damage to watersheds through deforestation, urbanisation and the application of monocultures. Plans for improvement should include measures to improve water retention and storage, combined with reforestation, to

reduce soil erosion and flash floods.It has been often said that wealth tends to generate

pollution. While industrial development is generally seen as a crucial key to economic development and income generation, a fundamental drawback is the production of waste and the toxification of freshwater that some of it tends to generate. This threatening situation can be avoided by a combination of knowledge, awareness and creating opportunity for intensive public participation and collaboration, legislation and enforcement. Rethinking in science, of ethics and spiritualism may also have to be involved.

Augmenting supply to available water resourcesApart from rain-water harvesting (mainly during seasonal occasion), reuse and recycle of water on a large scale provide the best opportunity to augment supply to available water sources on a year-round basis.

Recycling of bio-mass effluent is already widely practiced in many advanced countries like USA, Australia and Singapore, as shown in Figure 5 (the sequence of treatment and reuse for the main categories of water reuse, Asano 2002, Lazarova at al, 2013)) Although

the effluent can be treated for potable use, it may be best in Malaysia, to initiate the programme for industrial and agricultural usage like use in factories, municipal landscaping areas and general cleaning of municipal

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facilities. As an example, the total potential augmentation from treated bio-mass effluent for Selangor, FTKL and Putrajaya is estimated to be 24.5% of total demand, as shown in the Table 4.

As another example, the total potential augmentation from treated biomass effluent for Pulau Pinang is estimated to be about 10% of the total water demand as shown in Table 5. This potential additional water resource is significant to be used in highly industrialised region of Bayan Baru and Perai.

* RSTP Bayan Baru 75,186 m3/day RSTP Perindustrian Prai 3,288 RSTP Butterworth South Sg. Nyior 22,346 100,820 m3/day

The quantum for augmented supply is sizeable, especially for water scarce developed areas in Selangor, FTKL and Putrajaya and industrial areas in Pulau Pinang. The main issue is, of course, cost.

Reuse and recycling of water in some major factories and irrigated paddy areas, is on going in the country. This may need to be further improved in terms of volume recycled. Heavy water user factories should be encouraged to recycle more (i.e. as near as 75%) Cost can be a deterrent factor which may dissuade management from undertaking this due to lower water tariff.

The present pricing structure of treated water (and

billing for treatment of sewage) constraints any effort for improved WDM. This also stifles any scientific and technological advancement as well as discourages innovations towards water management for sustainable development. The National Water Services Commission (SPAN) is responsible for tariff reviews and setting for water and sewerage services. It remains to be seen who will be responsible for service and water charges for agriculture.

Groundwater resources are often overlooked. The most important cause has been the difficulty in assessing project feasibility and sustainability due to inadequate knowledge and data. Nevertheless, a key argument for groundwater is being able to use it when there is a shortage of surface water. It may be better able to postpone major investment in surface water infrastructure or in assuring a higher level of water security, compatible with WDM practice.

Conclusions and RecommendationsThe recent water crisis in Selangor, FTKL and Putrajaya and other parts of Peninsular Malaysia should provide urgent impetus for the authorities to revisit IWRM and adopt IWRM approach and with this, to transform the Nation and State water management emphasis from supply Management to Water Demand Management (WDM).

In order to avoid serious water crisis in the future, it is vitally important that total 3Rs (Reduce, Reuse, Recycle) strategies be included as strategies in WDM for all sectors. Recycling of bio-mass effluent for industrial and municipal use should be encouraged. Some new aspects that could be added include irrigation water savings within the agricultural sector and WDM for the environment for preservation of freshwater availability and for emerging industries (eg. tourism).

Inevitably, one of the critical success factors of WDM is public stakeholders participation and support. In line with the principles of IWRM, Public stakeholder platforms should be established soonest in all States and at the Federal level as well and with special and significant budget allocations for wide scale capacity building programs.

This is especially necessary for developing and introducing Government-Public mutually acceptable water pricing and financing structures for IWRM, WDM and scientific and technological advancement for sustainable development. As an example for treated water, with the formation of SPAN, an industry business model has been formulated to achieve long-term economic sustainability, like achieving full-cost recovery. A Sewerage Capital Contribution Fund has been created with all monies contributed by developers or constructors. A similar business model may need to be undertaken, on a long-term basis, as farming transforms into commercial enterprises, to gradually reduce subsidies and make water available, whenever required, to farmers at appropriate charges and service levels.

The need for Reformation in overall water management is now urgent. This includes strong and effective emphasis on the application of WDM in the overall concept of IWRM principle. Moving forward, WDM Masterplan needs to be formulated and introduced in the 11th Malaysia Plan. Programmes on implementation of WDM target areas need to be firmed up for planning purposes which is inclusive of budgeting allocations.

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MWA Activities

MWA 26TH ANNUAL DINNER2 December 2014, Pullman Hotel Kuala Lumpur

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MWA Activities

IWA WORLD WATER CONGRESS, LISBON, PORTUGAL21 September 2014

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MWA Activities

TECHNICAL VISIT TO ALS TECHNICHEM (M) SDN BHD19 August 2014

WORKSHOP ON DAM OPERATION10 September 2014

TECHNICAL VISIT TO MERCK (M) SDN BHD18 November 2014

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MWA Activities

WATER LOSS ASIA4 September 2014, Royale Chulan, Kuala Lumpur

MWA & BENTLEY SEMINAR4 September 2014, Berjaya Hotel, Kuala Lumpur

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MWA Activities

MWA-ARACHEM SEMINAR23 October 2014, One World Hotel

CePSTPO TRAININGOctober 2014

Exclusive Interview

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Special Interview with Dato’ Teo Yen Hua, Former CEO of Suruhanjaya Perkhidmatan Air Negara (SPAN)

IntroductionWM: Dato’ Teo, on behalf of all in the water services industry, we take this opportunity to congratulate you on your ret i rement as the CEO of the National Water Services Commission or SPAN, after a long and distinguished service with the Government.

In the last seven years from February 2007 to August 2014, you have been with SPAN for 7 years and has been very much the face and voice of the water reform in Malaysia, especially in the Regulator’s ro l e . Yo u r l e a d e r s h i p i n successfully establishing and implementing the nation’s first Regulatory regime for water supply and sewerage services has been recognised and acknowledged both nationally and in international water forum.

Thank you so kindly for sparing some time for this special interview. Our objective in speaking to you is to discuss some of the rich experiences that you have with you and to catch up with you on some current development. These include some questions posed by some industry players and stakeholders which we hope you can provide your frank feedback and insight on the early stages of the Malaysian water reform. MWA considers it a great pleasure to be able to place on record your passion and relentless effort in making the reform happened, for the benefit of your peers and the younger generation.

1.Was your seven year stretch as the first national Regulator been a long enough or too short a time for you to initiate and implement the reform and changes set out in the Water Services Industry Act 2006?

I think 7 years is just ideal as I believe, in my case, staying longer than that may not bring much difference to the organisation or the industry. I was supposed to retire in February 2013 but was persuaded to extent my contract for an additional year. However eventually my contract was extended for one and a half years. As MWA is fully aware, Water reform has never been easy either in this country or any other countries. The reason being water is one of the very basic necessities of life. As the saying goes “Water is Life” and any discussions surrounding water

has always been very sensitive and those involved tend to become very emotional. This is also something that I have learned from the many international forums and dialogues on water issues.

In our case, the reform is more challenging as the industry is highly fragmented with each state having its own operator or agencies and adopting different structure, rules and procedures.

2.The water sector remembered very well, in 2007/2008, how you had confidently spelt out SPAN’s target of achieving “some quick wins for the water services from the so-called low hanging fruits, in a period within three years”. What are some of these “quick wins” we can see clearly today?

Since the formation of the Commission (SPAN) in 2007, I believe some quick wins have been achieved though some may not be fully. For example, we have managed to issue individual licenses under WSIA to most of the public water operators. Except for Perlis, Selangor and FT of Labuan, water service providers today in all other states have been duly licensed. Under the WSIA licensing regime, licensees are required to prepare a 30 years master plan and 3 years business plan. The Commission has imposed specific conditions and KPIs apart from standard conditions as set out under the Licensing Rules. Their performance is constantly being monitored by the Commission through quarterly regulatory meetings.

Exclusive Interview

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Another quick win is the corporatisation of water department or agencies for some states through the creation of water companies. In this regard, states like Negeri Sembilan, Kedah and Pahang, have successfully transformed their water supply organisations from being a public agency or department to a corporate entity. Now only Perlis, Perak and FT Labuan have yet to be corporatised.

Permits and Licences• 11,000 permit holders registered as at end of 2010 (2013

- 26,000) which covers plumbers, water supply and sewerage contractors as well as companies involved in providing maintenance services

• 648 class licenses issued by the end of 2010 (2013 - 853) for private water supply or sewerage facilities owners or services companies.

• 605 applications approved from suppliers for water and sewerage products and services.

• 3,092 professionals from various disciplines approved as Qualified Persons

Rules and Regulations• Introduced the Water Services Industry (Water Services

Deposits, Fees and Charges) Regulations, • Water Reticulations and Plumbing Rules• The Uniformed Technical Guidelines for the water

supply industry• The Water Services Agreements between Consumers

and Water Distribution Licensees Rules has also been gazetted recently.

• In line with WSIA, the Commission continues to support the Malaysia Water Forum which provides a platform for consumers to express their views and suggestions on issues related to water services

• Draft Rules and Regulations such as the Water Services Industry Bulk Supply Rules, Cleaning and maintenance of Common Water Tank for High Rise Buildings as well as the Rules on Maintenance and De-sludging of Individual Septic Tanks.

Enforcement• 464 cases were reported to the Commission by end of

2013. • 55 cases had been sentenced by the Courts, 6

compounded and 6 under Courts’ review, • 131 investigation papers completed, 241 under

investigations and 25 with no further actions.• Resolved many cases of delays in handing over public

water and sewerage facilities to service operators or licensees especially in states like Selangor and Federal Territory of Kuala Lumpur.

• L ikewise, the Commiss ion has resolved many customers’ complaints on poor quality sewerage facilities constructed by certain developers.

• Audit water treatment and sewerage plants annually.through its four regional and 2 branch offices, Now the Commission could respond to consumers’ complaints more effectively through these offices.

Tariff Review• Successfully obtained approvals from the Minister to

review water tariffs for five states in 2009 and 2010 i.e. Penang, Johor, Melaka, Kedah and Kelantan.

THE 2014 MWA SPECIAL WATER AWARD FOR LEADERSHIP

The Malaysian Water Association (MWA) confers The MWA Special Water Award to honour individuals who merit special recognition for outstanding achievements and contributions to advance the cause and develop-ment of the Malaysian Water Industry. This year the high-est individual recognition offered by MWA comes in the form of the MWA Special Water Award for Leadership, which acknowledges and celebrates the key leadership role played by Dato Teo Yen Hua, until recently, the Chief Executive Officer of Surahanjaya Perkhidmatan Air Neg-era or SPAN .

The Citation In the last seven years from February 2007 to August 2014, Dato Teo Yen Hua was the CEO of SPAN. During this period, he had been very much the face and voice of Water Reform in Malaysia, especially in his role as the Regulator. His leadership role in successfully establishing and implementing the nation’s first Regulatory Regime for water supply and sewerage services has been widely rec-ognised and acknowledged, not only nationally but also internationally. His guidance and achievements in setting up the national water services regulatory framework has today placed SPAN on a sound footing and enables it to move confidently into the organisation’s next phase of transforming the water industry.Dato Teo Yen Hua has demonstrated outstanding capa-bilities as a leader, manager, and visionary. He was suc-cessful in meeting the challenging task entrusted to him, due in part to his being a leader by personal example that would focus on leading from the heart. He has intro-duced in SPAN the practice of principle-centered lead-ership, the importance of ethical behavior, the leader-manager. They are real examples of a true leader.In this annual award ceremony ,MWA joins with all col-leagues and friends in the water industry to applaud his passion, tenacity, initiative, vision, and most of all his willingness to lead by example. The Malaysian Water As-sociation hereby proudly confers the 2014 MWA Special Water Award for Leadership to Dato Teo Yen HuaIN RECOGNITION OF HIS OUTSTANDING leadership and vision IN PIONEERING THE REGULATORY REFORM OF THE WATER SERVICES BY SPEARHEADING AND DEVELOPING BEST PRACTICES, INNOVATIONS AND SOLUTIONS WHICH BROUGHT ABOUT SIGNIFICANT IMPACT ON THE MALAY-SIAN WATER TRANSFORMATION PROCESS.

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3.Can you also mention some specific changes that you have introduced for the sewerage services sector?

One of the most obvious changes is in the area of plan approvals. We started to enforce the Rules on Planning, Design and Construction of Sewerage System and Septic Tank in 2013. As you are aware, before WSIA came into force, the process was very cumbersome as plans were checked by IWK but approvals were issued by the Sewerage Services Department. With the above Rules and the appointment of IWK as the Commission’s Certifying Agency (CA), similar to the water supply sector, it has definitely cut down many red tapes and unnecessary delays. Correspondingly this has facilitated the process of handing over of public sewerage systems constructed by developers to the service provider as required under WSIA. Even in terms of the quality of construction works, it has greatly improved. This is made possible as developers are required to hand over the system to the service provider (IWK) upon issuance of certificate of compliance signed by persons recognised by the Commission under WSIA. The Commission is not directly involved in this process. However, if there are any complaints of non-compliance of rules set out by the Commission, by either parties (developer or service licensee), the Commission will then intervene or investigate.

The Commission has also set up a Sewerage Capital Contribution Fund and has started to implement sewerage projects in areas where the facilities are still lacking or require improvements. Total collection has crossed RM700 million. Once a Sewerage Facility Owner is identified or appointed by the Ministry, the task of implementing these sewerage projects will be transferred to this company.

4.What are the other “higher hanging fruits” that are still up there?

I consider the above areas as those with “low hanging fruits” covering the technical, economic and social regulatory provisions under WSIA. But the most challenging issue faced is to have a tariff setting mechanism which can address the complication of tariff revisions. This issue is highly complex. It is an area that the water supply industry has yet to find an acceptable mechanism, not only in Malaysia but also in many other developing and developed countries. Without a cost recovery model, the industry cannot be sustainable even with the asset-light model in place.

The Integration of water and sewerage services is another important aspect that should be implemented as it will eventually benefit the consumers. In many advanced countries, these two services are provided by the same service provider. Even though there are provisions for integrated billings in WSIA, the Commission has not been able to get it implemented as there are some major policy issues to be addressed.

Likewise, to ensure better infrastructure planning and development, there should be a facility licensee for the sewerage sector. In my mind, there is an urgent need to identify a facility owner for sewerage services. What we have now is only service operators such as IWK.

I also hope those rules and regulations that we have drafted could be quickly approved by the relevant authorities as they will bring further improvements to the

water and sewerage services in this country.

5.Many argue that institutional performance is at the heart of water sector reform. Improved performance management of existing institutions should be an important element of reform, including improving their governance structure and reducing political influence in the management of the organisation. Is the water transformation succeeding in this objective?

Rightly so. Institutional performance can only be improved if we are prepared to discard bad or inefficient practices and transform ourselves by adopting good practices. Institutions can only improve if leaders are committed to steer the organisation along a new path even if it means entailing a lot of sacrifices and hard work. For the water services industry, changes should not only be in the form of structure but more importantly, the culture of constantly striving for better performance, customer focus and above all readiness to embrace new technologies and practices. In terms of governance, it is best that water operators are managed and led by professionals. Certainly this will take away the pressure of our political masters who need to balance political considerations as against long term industry interest when confronted with the issue of fair and sustainable pricing for water services. Towards this end, the states that have migrated to the new regime are showing good corporate performance through the restructuring exercise.

6.Why is it that not all states have migrated to the full regulatory regime and be committed to institutional restructuring even though some are already corporatised? What are holding them back?

Any initiatives for reform will definitely entail a lot of pain and agony. No amount of preparation is sufficient to make the operators ready to undertake the reform except to go through the whole process itself. The fact that the authorities (i.e. Ministry and the Commission) did not set any deadlines for the migration means that those who are ready can adopt the full reform while others are allowed to take a longer period to do so. But after allowing flexibility for the past 7 years, my view is that a deadline should be set, so that the whole process can be expeditiously completed and not left hanging. However, this can only be done if the Federal Government gives the Commission the necessary support.

Without mentioning the states, my guess is the main hurdle is the payment obligations for their outstanding loans. However, there could be other reasons which I may not be aware and would not be able to provide the details as negotiation with all state governments is under the purview of KeTTHA.

7.What is your take on the new business model which many in the water industry think has still much ground to cover, in respect to making the water services industry more efficient, effective and sustainable?

That is true. Though we have made some good progress since WSIA came into force, there are still many areas

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not fully addressed. However, I believe the Asset-Light concept and its benefits has gained better understandings and appreciations from all stakeholders especially state governments. The ring-fencing mechanism put in place have successfully overcome the fear and skepticism of some state authorities and consumer bodies of the intentions and objectives of the reform.

Asset Light ModelI would like to stress that states which have fully adopted the Asset-Light model have made significant progress as compared to others. This can be seen from major KPIs such as NRW level, Water Quality achievements, response time, billing system and complaints handling, etc. These operators are able to perform better as they have good Business Plan, systems and practices. However, this does not mean those that have yet to transform into the asset-light structure did not make any advances. They have. But the main challenge is whether those improvements are sustainable? My concern is they are not.

Transparency in Tariff SettingAs I have mentioned earlier, by far the biggest challenge faced by the industry now is the absence of a tariff setting system that will ensure full cost recovery over the long run. This is an area that we have not been able to make good progress. Tariff reviews are the last thing people will like to see it happens.Unless we have an acceptable system in place, current perception that review is necessary because of inefficiency will continue to hinder our effort towards full cost recovery and sustainable development for the sector.

Therefore, it is extremely crucial for the Commission and the Ministry to develop a mechanism which uses a set of benchmark cost which will be used to penalize inefficiencies yet able to incentivize innovations and effectiveness. Water services licensees should only be allowed to revise tariffs with proper justifications. Consumers must be given all information that justifies these reviews. The Commission has developed such a model. But we need to get the buy-in from major stakeholders both at the Federal and State level. I have been informed that the Commission has approved a plan to roll out its training programmes to all states before the mechanism is implemented.

8.Current experience in Klang Valley and elsewhere show that the case for pursuing a revolution in water resources management has never been stronger. Some stakeholders see WSIA as only addressing half of the water problem. Are there room for changes to be done to make water management more inclusive and holistic?

On the issue of ensuring sustainable water resources, it is an area which falls under the jurisdiction of the state governments which the Commission does not have much influence. Yet, the Commission has occasionally been criticized for not taking appropriate actions. In the long term interest of all consumers and for achieving a sustainable national development, water security should be made one of the national agenda. A long term plan to ensure sustainable water resources is crucial even though water resources fall under the state jurisdiction. Federal and State cooperation in this matter will benefit the nation as a whole and the well-being of our future generations.

To move forward, there should be a dedicated platform at working level to formulate and coordinate policy and strategies that cut across all water resources issues. This could be done by having a Committee chaired by a Federal Minister with state executive member (Exco) in charge of water and related agencies as its members. The outcomes of such committee can then be tabled for approvals at the National Water Resources Council which is chaired by Hon. Deputy Prime Minister. Otherwise, lack of good water resources and issues related to water resources infrastructure will negatively impact our efforts to create a sustainable and efficient water services industry. I share the same concern on this issue as highlighted by MWA in the above questions. Unless state governments are prepared to handover water rights, I think we should look for other mechanism to overcome the problem and not leave thing as status quo.

9. The private sector is critical to the transformation of water services in a country as it has at least three important roles to play: as provider of capital, as water user, and as provider of solutions. Has the role of private sector being pushed to the background by WSIA?

Our reform model does not mean that there is no role left for private sector. For example, the Commission allows a few water operators to outsource some of their operations. They are given an individual sub-contractor license under WSIA. But water operators must prove that it will bring benefit to them and the consumers. However, proposal to have long term concessions as previously practiced is not in line with WSIA as the Commission could not guarantee that their licenses will be automatically renewed. Under the law, licensees must not breach any conditions or commit any offenses. Individual licenses can only be issued for a maximum of three year term. But as the industry progresses and after all operators have been licensed, a longer tenure will bring no harm to the consumers.

Under the new regime, private sector participation is most welcome in areas where they can value-add or have specific technical knowledge or advantages. New technologies and services that can drive efficiency and effectiveness are a plenty. And the industry must continue to adopt innovative ideas and systems to be efficient. Even in the area of financing, I am confident that water operators and the Regulator can consider some of the new technologies or IT services if parties can come forward with a fair and transparent implementation mechanism. As a matter of fact, this has been adopted by some operators in energy efficiency systems for their water treatment plants, though on a very small scale.

10.An inevitable question: How do you see the Selangor water saga will turn out?

On the Selangor issue, I am positive that it will be resolved as ground works have been laid which augur well for both federal and State Government to conclude the whole exercise as soon as possible. It will benefit the people, industry and nation as a whole.

11.With the benefit of hindsight, do you see yourself (in the Regulator’s role) as one who has to do a lot of

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fine balancing between policy and decision makers, industry leaders, political masters, other stakeholders or consumers? Would you live through it again if given a second chance?

Water sector reform in Malaysia is very much policy centric. Most of our reform initiatives could only be implemented with State Governments support and endorsements as water and sewerage infrastructures are land based. Therefore it involves effective negotiations and understanding relevant issues and concerns of each State Government. Indeed it is a difficult and time consuming task. For instance, we have to go through a whole process of convincing new political masters whenever there are changes in state leaderships. In this regard, I had to leverage on my personal background and experience in policy formulations. Personally, I did not face much problems in dealing with industry players or consumers during my seven years as a regulator. I enjoyed every moment of my stay and will not hesitate to live through it again.

12.On the other hand, can you share with us some highlights and anecdotes that have made your public service of more than 35 years a very pleasant one?

Participating in all the debates and forums of public consultations for water reforms right until the Water Services Industry Bill and SPAN Bill were approved in the Parliament after three days of debates, remain fresh in my mind. The experience has been very rewarding and fulfilling. Apart from the water sector reform, I am also happy to see progress and achievements in our Information and Communication industry which I had the opportunity to be involved in making many policy decisions including the migration to new regime under the Communication and Mult imedia Act 1998, the introduction of the Universal Service Provision Fund and programs to bring telecommunication infrastructures to unserved or underserved areas, promoting IT usage in schools and many initiatives on bridging the digital divide.

13 .Wh a t n ex t fo r you r a f t e r retirement? What will you miss most and any final words to your staff, to the industry?

I have no specific plan after my reti rement from public service. I am now spending much of my time with my family. What I missed most? Good meetings and interactions with consumers, NGOs, water and sewerage industry players and officials of Federal and State Departments. I also miss

the satisfaction of seeing public appreciation of our efforts in improving public water supply and sewerage services particularly when their complaints are effectively resolved. Throughout my service, I placed special focus and considerations on public interest especially in policy formulations, resolving complaints and implementing development projects. I hope my staffs in the Commission will continue to play their role in protecting the interest of consumers and stakeholders, enforcing the law without fear or favour and working towards ensuring water security and long term sustainability of the sector. I am confident under the new leadership they are able to bring the Commission to greater heights.

For industry players and consultants, my sincere hope is that they will be forthright and objective in advising our political masters and other stakeholders. We must not be influenced by our individual political philosophy or preferences. Otherwise this industry will continue to be plagued with issues and seen as one that is too politicized. Then we will not be able to attract the best brains. Those who are highly talented will shy away from this industry.

NOTE: Please note that the above comments are Dato Teo Yen Hua’s personal opinion and do not necessary reflect the position of the Commission.

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Water Resources Management: Identifying synergies in theoretical approachesThe concept of water resources management (WRM)

is not new: societies have taken great care to manage water resources for centuries. However, the unprecedented severity and diversity of modern water challenges highlights the need for a new approach. Currently, three major concepts are competing for prominence: Integrated Water Resource Management (IWRM), the water-food-energy nexus, and green growth theory. Unfortunately, they are often presented as competing ideologies, leaving observers with the impression that there is little room for collaboration. What needs to be realized is that these approaches were born under different circumstances, at varying points in time, and are simply approaching different aspects of the same problem: how to effectively manage water resources through the inclusion of economic instruments and other natural resources. By analysing their theoretical gaps, this paper advocates a holistic approach to WRM through the broader contemporary lens of overarching natural resource efficiency, in order to break open the existing silos of unilateral foci. The three can be analysed together to create a framework of water resource management that is not only best for the environment, but is also the optimal socio-political pathway towards sustainable growth.

In order to realize an overarching framework, it is necessary to involve stakeholders vertically and horizontally, and to streamline the initiatives of various government ministr ies. These ministr ies would then depend on one another to properly execute their respective functions, as well as state and local level governments to follow through with enforcement. For this to succeed, there must also be a high level of information sharing between stakeholders to maximize efficiency and reduce administrative overlap. After a brief introduction to water resources and services, this paper will present three cases in which the collaboration of the concepts can be readily observed: the Ebro River basin of Spain, the Kallang River basin of Singapore, and the Putrajaya Federal Government Administrative Centre of Malaysia.

WATER RESOURCES AND SERVICESWater resources can be largely divided into two major categories: surface water and groundwater. Surface water is a term used to describe any body of water located above ground, whether it be a stream, lake, creek, or reservoir. Groundwater, on the other hand, comprises all subterranean water resources. Most regions’ water consumption patterns rely more heavily on one over the other, depending on the local geographical and climatological environment. Communities in areas with scarce surface water resources cope by exploiting groundwater instead. Aquifers are especially important during extended droughts for their large capacities and longer regeneration cycles, as they act as a buffer system that prevents wetter climates from drying out; however, they take years to recover if mismanaged or

overexploited. Such water resources are made practical to society through the provision of water services, which are integral for domestic, industrial, agricultural, and ecological sustenance: water infrastructure is essential for flood control, water transport, agricultural irrigation, and hydroelectricity generation; proper sewerage and sanitation ensures quality control; and healthy water systems are necessary to maintain stable levels of biodiversity.

Although environmental sustainability is considered a priority for many countries, it often takes the backseat behind economic development. Consequently, natural resource consumption has barely slowed its pace, and mounting environmental pressures hold signif icant implications for human civilization. According to a World Economic Forum survey of thousands of professionals and academics around the world, water supply crises are one of the two most impactful, and five most likely global risks today. This is founded in part upon the massive scale of the crises’ impact on human security and public health: nearly 2.5 billion people around the world lack access to basic sanitation, 768 million of whom are deprived of a safe drinking supply. Poor sanitation comes hand-in-hand with exposure to human excreta, a key transmitter of infectious diseases such as cholera, typhoid, and polio. Additionally, a significant amount of time, energy, and money is required to secure water supply access, thus taking resources away from economic activities and propagating a pernicious cycle of positive feedback. The situation is only expected to worsen with continuing rates of urbanization and population growth. The United Nations estimates that there will be a 40% deficiency of global water supply by 2030, compounded by a 50% increase in total water demand by 2050. Successful WRM is integral for economic development and in achieving the UN Millennium Development Goals - including but not limited to those that concern human development, food and energy security, gender equality, and poverty reduction - and therefore must be placed as a top global priority.

CHALLENGES IN MANAGING WATER RESOURCESUnfortunately, managing water resources is not as simple as conserving supply or limiting demand through top-down legislation within each country or municipality. It is challenging to establish a framework because of water’s conformity to natural divide, not man-made borders. The number of transboundary river basins around the world reveals the significance of this phenomenon: 148 countries hold territories in at least one transboundary river basin, out of 276 major transboundary watersheds on our planet. In addition to state boundaries, water also transects ‘invisible’ intra-national administrative districts. Due to its free-flowing nature, a change in one location is likely to hold implications for other areas – the development of a dam without due consideration for downstream riparians

By Seigi Karasaki as Graduate student, University of Tokyo and Salmah Zakaria as Economic Affairs Officer/Water Specialist, UN ESCAP

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is a classic example. What might be largely beneficial for one constituent could be severely crippling to another. For these reasons, regions with shared water resources are often geopolitical hotspots for conflict. Many disciplines address the issue of water management, but there is little sign of cross-academic collaboration. Engineering knowhow is rarely translated effectively into public policy, and economic development is constantly at odds with social ethics. There are many challenges in WRM because of the large number and diversity of stakeholders with a vested interest. These challenges can be largely organized into three major categories: technical, social, and governance.

It is generally agreed that the technical facet of water management has achieved an adequate level of understanding. Many prominent water experts (such as Professor Malin Falkenmark at the Stockholm International Water Institute) have long vouched for Integrated Water Resources Management (IWRM) as an engineering approach. However, IWRM is sucked into a complex matrix of state-driven land and economic policy when translated into legislation. Much of the original engineering expertise is lost within this larger framework, either in the written policy itself or in the implementation afterwards. Figure 1, a graph by UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific) in 2012 (Kimberly Roseberry - unpublished), illustrates the positioning of various WRM concepts within the larger spheres of science, government, and society. Green growth theory and the water-food-energy nexus theory are both ways in which experts have attempted to bridge the gap between technical knowledge and actual policy in IWRM. It must also be adaptive and flexible: over the last two to three decades, climate change has added to the complexities of WRM by increasing intensity and frequency unpredictability of extreme meteorological events (e.g. cyclones, floods, droughts). Engineering designs and standards must take this into account when managing water systems and services. There are many social challenges as well – most often, they concern the equitable distribution of water resources to stakeholders, or proper compensation for a large scale infrastructure project (e.g. the aftereffects of the construction of a large dam).

Cooperative governance persists to elude most major transboundary scenarios, even though river basins clearly cannot be adequately managed through isolated silos.

Countr ies often shy away from what they see as consumption-restricting environmental policies primarily because of potential perceived negative economic impacts. Development measures need to be orchestrated to complement the larger context, and the interests of all riparian stakeholders must be taken into consideration. Next, we will examine three cases in which the concepts of IWRM, green growth, and nexus theory have proven to be quite compatible.

CASE STUDIESThe Ebro River Basin, SpainAs a semi-arid region, agriculture and energy production were never huge attributes of the Ebro basin. Through WRM and catchment engineering, the region has transformed into a pr ime area of agriculture and hydropower generation. The case of the Ebro is particularly fascinating because of the evolving role of its water sector: from installing infrastructure for economic growth and water capacity, to meeting the demands of economic development, and finally providing continuous supply through long-term initiatives. The Ebro River Basin is now an integral component of the country’s total economic output.

The first two roles enjoyed a relatively high degree of political support, primarily because the connection between increasing water capacity and furthering economic development was very apparent. A larger water supply was necessary to kick-start the agricultural industry and to meet the demands of subsequent industrial and population growth. In contrast, the third (and current) stage of water management is less attractive, as it necessitates long-term investment that suffers the misperception of stunting current growth. As common with other environmental initiatives, public officials see little reason to conserve natural resources and instead support plans for further development, even if the lack of resource capacity is obvious. It has also proven difficult to satiate the competitive demands of the public and private sectors, which were exacerbated by the emergence of many new industries and population growth.

One of the key elements of Ebro’s success in WRM is its high level of public participation and institutional transparency. This is an integral component of IWRM. On a regional scale, the European Union’s ambitious water quality goals continue to encourage a culture of water management: the Water Framework Directive (WFD) in 2000 mandated for all EU nations to elevate the qualitative and quantitative statuses for all bodies of water within their territories by the year 2015. In order to increase public participation, enforceability, and the coordination of objectives and measures, the WFD split water management within the EU based on geospatial river basins, instead of traditional political and administrative borders. The Ebro basin itself has an extensive history of wide scale engagement, established by the Hydrographic Confederacy of the Ebro, which was formed in 1926. The water management framework in the Ebro River basin exemplifies the utility of public participation as a tool to increase policy cohesion and enforceability. Through this, incredibly strong synergies with the food and energy sectors have come into fruition alongside agriculture, exponentially expanding the economic output of the Ebro region. By having a clear

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and transparent understanding of the available amount of water resources for consumption, industries have it in their best interests to collaborate on sustainable, long-term plans for water usage.

The Kallang River Basin, SingaporeCloser home to Malaysia, Singapore has sustained both economic growth and environmental management despite l imited natural resources and geophysical capacity. To compensate for its small size (and therefore a lack of large natural bodies of water), a sustainable water supply was created through careful engineering of reservoirs, water catchment areas, and thoughtful urban planning. In 2011, the country achieved 100% access to safe drinking water and improved sanitation for its entire population. This section will examine how the country incorporated water resources management into the larger framework of economic policy to accomplish its goals.

The first decade of Singaporean independence was characterized by rapid industrialization, heavy pollution, and a sustained period of robust economic growth. Although Singapore had always emphasized the importance of maintaining a clean environment for attracting investment, it was evident more in theory than in practice. The extent of Singapore’s environmental degradation was apparent in its severely polluted waterways, especially along the Kallang River. Realizing that drastic measures had to be taken, Prime Minister Lee Kuan Yew gave his government ministries ten years to achieve a comprehensive clean-up of the Kallang River basin in 1977. Through an impressive combination of interministrial collaboration, integrated water resources management, green investment, and efficient nexus policy, the country successfully turned the status of its water pollution around.

Singapore’s path to effective water management can be divided into three phases: 1) introducing a systematic approach to address the issue; 2) establishing a clearly defined and enforceable legal framework; and 3) continuing efforts to improve water resources management. First, the source of rampant pollution degrading the Kallang River had to be identif ied and addressed: unregulated domestic and industrial discharge. Next, the country moved quickly to invest roughly 300 million SGD in a massive resettlement initiative to move hawkers, squatters, makeshift industries, and storehouses away from the riverside. In 1978, there were a total of 46,178 squatters; by 1986, virtually all had been resettled. By consolidating residents into government-owned high-rises and street vendors into hawker centres, Singapore achieved incredible gains in percentage of citizens with metered water, and greatly improved sanitation and water supply services.

Immediately following the clean-up, Singapore established a solid groundwork for sustainable and equitable water management. Through a strategy of gradual implementation, the water pricing system for domestic and industry sectors came to reflect the higher costs of alternative water supplies in addition to the full cost of production and supply. With the intent of promoting a cycle of sustainable R&D, the Water Conservation Tax (WCT) was funnelled into a consolidated fund specifically reserved for national projects, managed solely by the

Ministry of Finance. By taxing all usage, the water pricing system also helped create a culture of conservation. In order to promote equity for the poor and involve stakeholders of all societal strata, the government instated a quasi-cash hand-out system that applied towards the utility bill as a whole, in which water was included.

The most signif icant aspect and advantage of Singapore’s success in cleaning up the Kallang Basin was its freedom from administrative boundaries, which was possible because of its manageable geographical size. Under PM Lee Kuan Yew’s strong commitment, inter-ministry cooperation was smooth and frequent. Ultimately, the success of Singapore’s clean-up owes itself to four factors: the dominant presence of a ‘water champion’ in PM Lee Kuan Yew, a solid framework of land and water resources management, cross-sectoral cooperation, and economic integration. An important question left unanswered is how this success can emulated in bigger river basins.

Although the integration of environmental and economic sustainability in Singapore is largely hailed as a success by countries and experts around the world, there are a number of considerations that one must remember before attempting to extract a framework for green growth, the nexus, and water management. The three key advantages that Singapore wields over most other countries are 1) a geographically small river basin, 2) administrative cohesion under a strong and centralized political will, and 3) copious financial wealth and foreign direct investment. Singapore is a small island country located on the southern tip of the Malayan Peninsula, characterized by a tropical rainforest climate with a total area of 700 square kilometres (km2). Although the combination of these advantages is hard to come by, it is still possible to draw an applicable lesson and framework of water clean-up and management to be applied to other cases. This can be done by packaging river basins into smaller, more manageable sizes of the tributary level under the umbrella of an overarching framework.

PUTRAJAYA FEDERAL GOVERNMENT ADMINISTRATIVE CENTRE, MALAYSIAMalaysia is a water-abundant equatorial country that draws up to 97% of its available national supply from surface water sources. Like many other neighbouring countries in Southeast Asia, Malaysia has undergone rapid urbanization and industrialization over the past few decades. Urban populations grew by as much as 72.2% in 2010, and the combination of increasing water grid users and higher urban per-capita usage has resulted in a spike in demand for water. Although Malaysia has an abundance of federal and state-level sectoral-based water laws, legislations suffer from a dearth of understanding and integration between water, land, natural resources, and development agencies. The problem may exist on an even more fundamental level, however: due to the Federal Constitution, water and land lies within state jurisdiction, rendering it difficult to establish a single specific authority to manage bodies of waters across the country. In order to maximize the efficiency of sustainability efforts, it is necessary to coordinate development within ecosystems, especially river basins.

The Putrajaya Federal Government Administrative

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Centre is an excellent case of how the Malaysian government can and has taken significant steps towards creating a green city, with water resources management at its core and through the passing of the Perbadanan Putrajaya Act 1995 (the Putrajaya Local Authority Act 1995). The current water system owes its layout to a downstream dam constructed across the Chuau River, which created the artificial lake, upstream of the dam. One third of Putrajaya is dedicated to parks, lakes, and wetlands. The 600 hectare Putrajaya Lake is a natural filtration sink, and is bordered upon by 23 wetland cells that serve as a natural buffer system. The wetland cells offer cost-effective water treatment, acts as a wildlife refuge, and holds notable allure as a tourist attraction. Additionally, as a public project with water as its core focus, the creation of Putrajaya Federal Administrative Centre is an effective way of increasing public awareness and education on holistic water resources management. However, the primary challenge is one discussed earlier in this paper: the Putrajaya catchment transcends “invisible” intra-national administrative boundaries. 30% of the upstream Putrajaya Lake catchment is outside of the Putrajaya Federal Administrative Centre. The current issue is that while all environmental issues in Malaysia are governed under the Environmental Quality Act of 1974, within the Putrajaya Local Authority areas, resources are made available to ensure stringent implementation and monitoring of the Environmental Quality Act of 1974; and no matter how well-planned Putrajaya’s management and filtration schemes are, they are not designed to absorb large amounts of external pollution.

The current Malaysian framework may be deficient in

its approach to the problem: the institutional framework is compartmentalized among competing administrations, and the conservation effort lacks a structured and concerted approach to mitigating environmental problems. A more comprehensive approach that addresses the Putrajaya catchment as a whole is necessary to achieve sustainable management of water resources. This comprehensive approach encompassing the whole catchment may already be in place. On a grander scale, with Putrajaya as a pilot, this approach can be applied to the Klang River basin, the business capital of Malaysia. The Selangor Waters Management Authority (SWMA or LUAS) may be the establishment that can provide an overarching authority for the entire river basin, equipped with both the technical and political knowledge to successfully execute and monitor water management initiatives.

CONCLUSIONOnce it is accepted that the three concepts of water resources management are mutually symbiotic, it opens the door to a plethora of economic tools that can be effectively applied to policy cohesion and conservation efforts by the state. Technical innovations can also lead to business opportunities that have the potential of exportation. Sustainable water resources management is not impossible to achieve. Synergizing the philosophies of IWRM, green growth, and the water-food-energy nexus is a realistic and politically attractive option that can simultaneously pursue ecological sustainability and economic growth. In the end, all three are pursuing the same ultimate goal: achieving optimal natural resource efficiency.

Event PreviewThe Third Edition of Borneo Water and Wastewater Exhibition and Conference To Be Held In Kuching during the Final Quarter of 2015

Water Security and SustainabilityIn the global context, water security has been defined as “the reliable availability of an acceptable quantity and quality of water for health, livelihoods and production, coupled with an acceptable level of water-related risks”. Sustainable development is also not possible without a water secure world. A water secure world would also mean ending fragmented responsibility for water and integrating water resources management across all sectors namely finance, planning, agriculture, energy, tourism, industry, education and health.

The third (3rd) edition of Borneo Water and Wastewater Exhibition and Conference 2015 (BWWE 2015) is set to create greater awareness of this al l important subject of water resources and water supply and the preparedness to face the challenges therein. The scientific and technical programmes wil l focus on f inding solutions that will balance the already stressed

water supply with increasing demand, innovative and sustainable partnerships in financing and managing water and wastewater, keeping abreast with the latest technologies in drinking water, wastewater and solid waste management, protecting our ecosystems and water catchments, coping with climate change and sustaining water resources including water-food-energy nexus and green technology.

For more information, visit www.mwa.org.my

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Selangor Water: Legal Issues And Challenges

INTRODUCTION

The state of Selangor is the most developed and richest state in Malaysia, contributing more than one fifth of the national gross domestic product. Rapid industrialisation and urbanisation however has brought about an overall demand for fresh water resources in the state. The situation is deteriorated by the long dry spells in early 2014 that has led to the drying up of the major dams and caused the longest water rationing in Selangor. The crisis has a spill over effect for the whole country when most of the economic investments were delayed in Selangor. Several initiatives have been made to improve the Selangor water sector but have been delayed by the legal framework governing the water sector in the country. This article provides a brief analysis of these initiatives and the legal issues surrounding them.

SELANGOR WATER MANAGEMENT AUTHORITY ENACTMENT 1999

Selangor is the first state in Malaysia which has created its own Selangor Water Management Authority (SWMA) or locally known as Lembaga Urus Air Selangor (LUAS). The authority is established under the Selangor Water Management Authority Enactment (SWMAE) 1999 and consists of a Chairman, a Deputy Chairman and not less than ten other members. In this respect, the State Chief Minister will be the Chairman, while the State Secretary will become the Deputy Chairman.

The main function of the authority is laid down in section 6 (1) of SWMAE 1999 that is to nurture, maintain and facilitate the sustainable development, efficient use and conservation of water sources for public purposes in respect of which it is established. It has also several legislative functions to regulate and control inter basin transfer of water within the State and develop and implement guidelines, performance standards, methods and procedures per taining to the management, utilization and conservation of water sources. With these powers, LUAS becomes an ideal model to implement Integrated Water Resources Management (IWRM) within the state that will help to reduce water problems.

Powers of LUAS

In order to carry out the above function, the authority is equipped with powers under section 6 (2) (i) of SWMAE 1999 to regulate the issue of licenses and permits upon such terms and conditions as deemed necessary on entry to or exit from any designated or protected areas, or the carrying on of any resource alteration activity within the limits of any water source and to impose fees payable on issue of such licenses or permits. It also has a role to ensure water sustainability for both present and

future resident of Selangor. In this regard, it shall provide advice to the State Authority as to the policies, methods and measures to be adopted to promote, nurture and facilitate sustainable development, efficient use and conservation of water sources for public purposes.

To this end, it will coordinate multi-agency relationships in the State and promote cooperation and coordination for multi-functional uses of water sources as well as protecting the interest of the State in respect of the development, management and use of water sources.

Enabling Environment for IWRM

IWRM can be implemented successfully with an enabling environment of appropriate legislation, institutional framework and management instruments. It can be seen that the SWMAE 1999 meet the purpose as an enabling environment since it covers all aspect of good and sustainable water management practices. However this may not be enough as institutional and constitutional frameworks, through which the spirit of IWRM in the SWMAE can be implemented, do not support such move. This is apparent in cases of river pollution where LUAS has the duty under section 41(3) (d) SWMAE 1999 to take such measures as it thinks fit for the protection of water from pollution and the improvement of its quality.

This duty however is shared with both the federal and local government; the Department of Environment has the duty to control point-source pollution under Part IV of the Environmental Quality Act 1974, while the local government has the power to convict offender of non-point source pollution under Part VIII of the Local Government Act 1976. Thus, the duty over pollution control is shared between all three levels of government.

Water Resources Exclusive Purview of LUAS

Despite the sharing of responsibilities, LUAS is the state authority and water resource is still under the exclusive purview of the state government. LUAS takes the challenge of multi-level governance in pollution control through IWRM by setting up the Pollution Control Task Force in 2004 with members consisting of various relevant agencies including the Department of Environment, the Department of Irrigation and Drainage, the Forestry Department and the local government. Other task forces have also been established for investigating cases of illegal sand mining, abstraction, diversion or resource alteration. The technical agencies will assist LUAS in collecting relevant evidence and LUAS will take appropriate legal action as provided under the SWMAE 1999.

Among these il legal activities which have been compounded by LUAS include the illegal diversion of Sungai Gong, Rawang, illegal abstraction at Sungai

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Kancing Templer Park, illegal sand mining at Sungai Long Kajang as well at the tributaries of Sungai Langat which are Sungai Kembong, Sungai Kachau Dalam and Sungai Kundor. LUAS has also demolished illegal structures by the river reserves including illegal jetty, squatters and goat’s pen. These actions were taken because they polluted the river and threatened sustainability of state’s water resources.

THE 2005 CONSTITUTIONAL AMENDMENT

All water operators work under the purview of LUAS in ensuring that water quality are kept to a reasonable standard and water supply is adequate for all water users. This however was the case before 2005 when water resources as well as the supply and services were under the exclusive jurisdiction of the state government. As a state water authority, LUAS’s duty to integrate water resources management in the Selangor water sector becomes more complicated when the Federal Constitution was amended in 2005 to transfer water supply and services from the state list to the concurrent list.

This was part of the National Water Services Industry Restructur ing Init iatives (NWSIRI) and the federal government established the Suruhanjaya Perkhidmatan Air Negara (SPAN) under the SPAN Act 2006 to regulate water supply and services operators through the Water Services Industry Act (WSIA) 2006. Following the amendment, the water sector in Selangor can be illustrated as below:

Another water operator in Selangor, Konsortium Air Selangor Berhad (KASB) was established on 20th March 2012. KASB however are not subjected to Selangor’s concessionaire agreement as it was licensed by SPAN to treat raw water from Sungai Labu to the Kuala Lumpur International Airport.

SPAN’s Concern Only With Water Services

It is apparent that the federal government through SPAN will only concern with the water services sector and will not interfere with state’s right over water resources. On a closer examination however, there are several provisions in SPAN Act 2006 which seem to be redundant with LUAS’s

responsibilities under the SWMAE 1999. For instance, section 15 (e) SPAN Act provides that SPAN will advise the Minister of Energy, Green Technology and Water on a fair mechanism for determination of tariff that is fair to both consumers and license. This is redundant with section 6(1) (l) SWMAE 1999 where LUAS will protect the interest of consumers in relation to the prices to be charged for water supply.

Despite the possible overlap, it is important to note that SPAN can only enforce its powers over the water operators in Selangor after the state government migrate to the asset-light migration under Pengurusan Aset Air Berhad (PAAB) and then to the SPAN’s licencing regime. Prior to the migration, all concessionaires are only required to get SPAN’s authorization to operate.

Some Overlapping Functions

Apart from this, both SPAN and LUAS has the power to enforce water regulations passed under SPAN Act 2006, WSIA 2006 and SWMAE 1999. Section 15 (b) and (c) SPAN Act 2006 allows SPAN to implement and enforce water supply and services laws, and to ensure productivity of service and monitoring of operator compliance with stipulated service standards, contractual obligations and relevant laws and guideline respectively. These may to some extent overlap with LUAS’s functions to regulate the licensees including the water treatment operators under section 6 (1) (n) SWMAE 1999.

LUAS also has the power under section 127 SWMAE 1999 to make such any rules or regulations necessary

or expedient for carrying out the p rov i s i ons of the enactment on the operators over guidelines, performance standards, methods and procedures p e r t a i n i n g t o t h e management, utilization and conservation of water sources. Although SPAN focuses on regulation on water supply and services of the water operators, LUAS’s regulat ions wi l l also affect the liability of operators as they abstract state’s water resources.

Water Resources Jurisdictions under SPAN and LUAS

Several provisions in WSIA are also seen as encroaching into the LUAS’s jurisdiction on water resources. Section 121 (2) (a) WSIA for instance provides that any person who contaminate any watercourse or the water supply system with the intention to cause death and death is the result of the act shall be punished with death or imprisonment for up to twenty years. In addition, section 121 (3) provides that it will not be a defence for the offender to argue that the licensee who own the water supply system did not take action to stop the supply of water as soon as it becomes aware of the contamination.

Besides, section 171 WSIA provides for the establishment of the “Water Industry Fund” which will be used for the protection of the watercourses and water catchment

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area; to ensure sustainability of water supply from the watercourses; and for the improvement of the water quality at the watercourses. It can be argued that these provisions deal specifically with the water source itself and that may be redundant with SWMAE 1999. In particular there will be duplication with the duties of LUAS to protect and develop water sources as well as to ensure resource use efficiency and conservation under Part V and VII of the SWMAE 1999. Unless of course the money contributed by the licensees into the Water Industry Fund becomes part of their Corporate-Social Responsibility (CSR), it remains arguable as to how SPAN will use this fund as it concerns with the protection of the water sources.

To date, SPAN has not passed any subsidiar y legislation pertaining to the fund or even to the offences under section 121 which conflict with LUAS’s enforcement powers under Part V, VI and IX of the SWMAE 1999. It is thus submitted that SPAN should only concern with the infrastructural aspect of water supply and services and not the water resources aspect of the sector.

Restructuring of Selangor Water Services

Besides the possible overlapping powers, the new Selangor state government led by the Pakatan Rakyat is not happy with the fragmented privatisation model of the water services sector in Selangor created by the previous state government. The demarcation between water treatment and distribution makes it difficult to leverage the concessionaires’ profits since the cost of maintaining and developing the water assets and infrastructures are very high and cannot be managed by individual company.

In addition, the present water tariff is considerably low and is not based on full cost recovery. Nevertheless, if the tariff is increased, it may benefit SYABAS as the water distributor. The other water treatment operators may not be able to cope with the rising cost of treatment plant. In addition, as seen in Figure 1, SYABAS is not directly governed by LUAS compared to other water treatment operators who work closely with LUAS in ensuring the sustainability of the rivers they are operating in. SPLASH for instance has routinely carried out water quality surveillance of Sungai Selangor to ensure the health status of the river. SYABAS however is not obliged to carry out such surveillance since it only distributes the treated water to the consumers. In the event where the river is polluted and the treatment plant has to be closed, SYABAS will conduct water rationing but is not liable to clean up the polluted river.

Due to these reasons, the Selangor government believe that it is vital to restructure the state water services sector and that has led to a long six-year negotiation process between the federal and the new state government of Selangor. The deal was finally reached as a result of cooperative federalism despite the different political ideologies of both governments as explained below.

COOPERATIVE FEDERALISM AND THE SELANGOR WATER DEAL

Since Pakatan Rakyat ruled Selangor in 2008 up till 2014, conflict continues between the federal and the new state government in the NWSIRI process. The new government,

who continues to hold over 70% interests of all water assets in Selangor, wants to buy all water assets as well as controls the water distribution rights. By acquiring the remaining shares from the concessionaire, the state government will sell the assets to PAAB at a price that will cover the cost of acquisition and compensation for early termination of concessionaires’ contracts. Its first bid was made on February 2009 amounted to RM5.709 billion based on one time net book value as proposed by PAAB. This was rejected by Puncak Niaga, SYABAS and SPLASH. In June 2009, the bid was increased to RM9.218 billion but was rejected by PNSB and SYABAS. The third bid was made in January 2010 for RM9.277 billion but was rejected by all concessionaires.

The final bid of RM9.65 billion became the final buying price of all concessionaires when the negotiation time reached its deadline on 31st December 2013.This was again rejected by Puncak Niaga, SYABAS and SPLASH. As the negotiation failed, the federal government has to make an unprecedented step, through the Ministry of Energy, Water and Green Technology, to invoke section 114 of WSIA on the basis of national interest. Once invoked, section 114 allows the Minister to assume control of all concessionaires.

It is important to note that this powerful provision has not been invoked before and the Minister is very cautious of exercising this power. Thus it is not surprising that until September 2014 section 114 has not been invoked as negotiation continuous with the concessionaires until agreement were sealed with Puncak Niaga, SYABAS and ABBAS. It remains to be seen whether the Minister will invoke section 114 against SPLASH which have not agreed with the state’s final offer even when the final agreement was inked.

A Need to Revisit the Present Approach of Federal-State Relationship

It is understood that two federal territories were situated within the state of Selangor and that indicate the federal government’s interest in solving the Selangor water conflict. Selangor is also the major income contributor and water interruption in Selangor can delay the economic and financial process and hence become a national problem. Prior to the 2005 constitutional amendment the state government will have all control over any issues on water resource and services. Nevertheless, after the federal government took control of water supply and services through SPAN, water matters become so centralised and it is difficult for the state government to interfere although it concerns with the welfare of Selangor citizens. This includes the decision to continue the Pahang-Selangor raw water transfer project despite the new state government’s disagreement.

It is submitted that dual federalism that has been practiced in the country provides fewer manoeuvres for cooperation in the water sector. Effort must be made towards revisiting the present approach of federal-state relationship and embark on a new deal that will benefit both parties in the long run. This can be done through cooperative federalism as being practiced in Australia and America.

On a different note, a multi level or polycentr ic government like the federal system of Malaysia provides

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an opportunity for sustainable management of water resources through subsidiarity principle as it allows something to be done at lower levels while reserving certain capacity to a higher level for collective action. This has in fact been done in the case of River Murray-Darling in Australia as well as in the implementation of the European Union Water Framework Directives. However, this may be easier said than done as Malaysian federalism have been mainly centralised since independence.

The Selangor water conflict proves that centralised federal ism wil l fur ther jeopardize the relationship between the federal and state government from different political allegiance. Fortunately cooperative federalism emerges in 2014 when the federal government and the state government of Selangor inked the Memorandum of Understanding (MoU) on 26 February 2014; followed by the Head of Agreements (HoA) on 1 August 2014 to solve their six years water conflict. Under the agreement, the state government will allow the development of the Langat 2 water treatment plant, which is the final phase of the Pahang-Selangor raw water transfer project; while the federal government will facilitate the restructuring of the state’s water services sector whereby all concessionaires will be managed by state’s owned Air Selangor Berhad.

The ends of the cooperation remain uncertain as political struggle in Selangor continues due to dissatisfaction by some quarters over the cooperation. The uncertainties will continue with the appointment of the new Chief Minister of Selangor. As such, it can only be hoped that future decision making will prioritise public interest over political interest.

CONCLUSION

Following the transfer of “water supply and services” from the State List to the Concurrent List in 2005, water can no longer be regarded as an exclusive state matter. With the increasing demand for fresh water resources for development process and economic growth, it is predicted that the federal government’s involvement in water resources management wil l be greater in the future. However, the demarcation between the management of water resources and water supply and services has created the Selangor water conflict. When water shortage becomes more common as a result of climate change and pollution, it is still unclear whether the responsibility of ensuring enough water supplies should rest with the federal or the state government.

Although the constitutional amendment indicates that the federal government will take the lead in water supply and services, it is the LUAS’s duty to ensure continuous supply of raw water from rivers and that requires continuous protection of the surrounding catchment areas like forest. This is an enormous and expensive duty and the cost of protecting the forest is yet being calculated in the water bills. Besides, political interference has also affected the development of cooperative federalism in the water sector in the country. This indicates the level of political maturity among the majority of the local politicians who prefers to continue their political differences not only during the pre-election campaign but also throughout the governing terms.

All parties must realize that water has no alternative in contrast to other resources like energy or electricity. It is thus vital that future decision making of the water sector prioritise people’s interest than one’s personal interest.

Air Selangor inks accord with Puncak Niaga

PUTRAJAYA Nov 12, 2014 STARBIZ: Selangor’s new water entity, Pengurusan Air Selangor Sdn Bhd (Air Selangor), has signed the sale and purchase agreement with Puncak Niaga Holdings Bhd, marking the start of the takeover of the

operations and maintenance of water treatment plants and water supply services in the state.

Following the agreement, Air Selangor is now the new owner of Puncak Niaga (M) Sdn Bhd and Syarikat Bekalan Air Selangor (Syabas).The agreement was signed in Putrajaya yesterday by Air Selangor CEO Suhaimi Kamaruzaman while Puncak Niaga Holdings was represented by Datuk Ruslan Hassan, who is also Syabas CEO. The event was witnessed by Minister Datuk Seri Dr Maximus Ongkili.

Under a master agreement to restructure the state’s water services in-dustry on Sept 12, Air Selangor was formed to take over the O and M of wa-ter treatment and water supply services that were previously managed by four companies. The other two companies are Konsortium ABASS Sdn Bhd (Abass) and Syarikat Pengeluar Air Selangor Holdings Bhd (Splash).

Ongkili said the takeover of the four concessionaires involved a total RM9.65bil, including RM2bil provided by the Federal Government through Pengurusan Aset Air Bhd.

He added that Abass had four months to complete the equity sale trans-action.

“As for Splash, we want the transaction to be concluded within 10 months”.

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Why Water Presents Special Challenges: A Brief Rationale for Water Resource Economics

For the first time, the International Water Resource Economics Consortium (IWREC) held its annual meeting

at The World Bank from September 7-9, 2014. The meeting, an annual gathering of water economists, serves as a place to exchange the latest information and research findings in the field. Water presents special challenges for economic analysis, including measuring benefits and costs and establishing appropriate institutional arrangements. To spark this year’s discussion, we shared with attendees and speakers text outlining the characteristics unique to water that make it a truly unusual resource.

The text is based on two publications, Water in the Universe by Arnold Hanslmeier (Springer, 2011) and Determining the Economic Value of Water by Robert A. Young (Resources for the Future, 2005).

In addition to posting the conference presentations and recordings, we also wanted to share the text on these special challenges more broadly:

Water is present almost ubiquitously throughout the universe. Yet the Earth seems to be the only planet, at least in our solar system, where liquid water is found on the surface. This presence of liquid water is thought to be a precondition for the evolution of life.

Water, in its liquid form, has many unique characteristics:

• Water is mobile. Water flows, evaporates, and seeps as it moves through the hydrologic cycle. This makes it a “high-exclusion cost” resource, implying that the exclusive property rights which are the basis of a market economy are relatively difficult to establish and enforce.

• Supply is highly variable. Basic raw water supplies are typically variable and unpredictable in time, space, and quality. Global climate changes are raising concerns about longer-term supply trends.

• Water is a nearly universal solvent. Water provides an inexpensive capacity for absorbing wastes and pollutants, diluting them and transporting them to less adverse locations. Its assimilative capacity should be understood as a scarce collective asset.

• Interdependency among users is pervasive. Water is rarely completely consumed in the course of its “use”. Downstream users are affected by the quantity, quality and timing of these releases or return flows of upstream users. The presence of these “externalities” implies that the full costs of economic activity are not recognized in individual decisions, making outcomes for society less than optimal.

• Waterproblemsareoften site-specific. Because of

variations in water supply and local demand, problems with water resources are typically local, and policy often needs to be adapted to local conditions.

• Differentbenefitsprovidedbywatercallforspecializedmanagement approaches. A distinction can be made between commodity benefits; waste assimilation benefits; public and private aesthetic, recreational, and fish and wildlife habitat values; biodiversity and ecosystem preservation; and social and cultural values.

• Water ismostlya low-valuedcommodity. The costs for transportation, lifting, and storage are usually high, relative to the economic value of water at the point of use. Thus extensive water-conserving technologies (recycling, metering) as well as incentives for conservation (marketable property, increasing block pricing) are presently found only where water is recognized as scarce and valuable.

• Transaction costs tend to be high. The resources required for establishing, operating, and enforcing a resource allocation, management, or regulatory system are usually high relative to the value of the water. Increased water scarcity and technological advances that reduce the transaction costs of monitoring and enforcing regulations encourage innovations in allocative institutions.

• Water is usually a “common pool” resource. This implies that a unit of water withdrawn by one individual is not fully available to other potential users, and that the costs of excluding potential unentitled users from exploiting the resource are relatively high. Common pool dilemmas arise when resource use decisions that are rational from the individual’s perspective bring about a result that is not optimal from the perspective of the exploiters as a group, or of society.

• Many small decisions have a cumulative impact. While each individual act of water use may have a negligible impact, the sum total of many individual decisions can be of major importance—especially when markets or other mechanisms to ration resources are absent. Effective public regulation of many small, scattered decision-makers is difficult and expensive, but increasingly necessary.

For these physical, economic, social and political reasons, water presents special challenges for economic analysis, including with regard to measuring benefits and costs and establishing appropriate institutional arrangements. Economists are called upon to answer these difficult questions.

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Usage Of Stormwater In Downstream River Basin As A Source For Treated Water Supply

AbstractL a n d d e v e l o p m e n t a c t i v i t i e s , uncontrolled disposal of garbage and the discharge of untreated domestic/industrial wastes into rivers have resulted in the quality of most of the downstream river basin water resource to become uneconomical for conversion into a source of supply for treated water. The costs of developing water resource in the river upstreams are quite high as these necessitate the construction of dams, pumping stations and extensive piping networks for the purpose of delivering water to population centres. For downstream river basins with high population densities, the utilization of stormwater may be seen as a potential source of raw water to be converted into treated water in this country, especially in localities that have been identified as experiencing shortage of treated water supply, by using suitable and practical methods. The development of stormwater sources too can reduce the risk of flood in downstream of river basin areas. The successful outcome of making stormwater as a source of water supply has been proven through the implementation of several projects inside and outside the country.

1.0 IntroductionThe country is expected to continue to experience increasing demand for water in tandem with population increase and economic growth. The need for the provision of water is critical especially in high density populated regions as well as in areas of economic activities such as industries, agriculture, and properties development. To fulfill these demands, the Government has invested heavily to finance water resource developments such as dam constructions, the inter-state water transfer, barrage constructions and bunded storage.

Land development activit ies, uncontrol led disposal of garbage and the discharge of untreated domestic/industrial wastes into rivers have resulted in the quality of most of the downstream river basin water resource to become uneconomical for conversion into a source of supply for treated water. Apart from that, climatic change too has inflicted negative impact on the source of water supply whereby global temperature rise has resulted in prolonged droughts as well as the unusual heavy downpour resulting in flash floods in the downstream

of river basin areas. Stormwater is rain water that ends up as running water

on the ground surface, on roofs and roads in urban areas. Stormwater that does not seep into the ground becomes surface run-off that flows into drains, rivers and eventually into the sea. The interaction of stormwater in hydrological cycle is shown in Figure 1.

Generally, population centres or large cities are situated at the downstream of river basin whereas the sources of raw water for the purpose of producing treated water supply are derived from the upstream or mid-stream

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• In depth studies are required to ascertain that there will be continuous supply of stormwater;

• Consideration regarding the impact of the scheme on the environment such as river ecosystem and the socio-economy of the product;

• Water quality must be enhanced before conventional water treatment can be implemented; and

• Monitoring and control of sources of pollution to ensure

the stormwater is of high quality.Example of the Application of Stormwater as a Source of Water

4.1 Alternative Water Source Project for KLIA: Labu River SchemeThe construction of the Labu River scheme has just been completed and it has begun operations in 2012. This is a scheme that draws stormwater from Nilai industrial areas and Salak Tinggi township. This project, situated close to KLIA, comprises the construction of river intake of 140 MLD (Million Litres per Day) capacity, a reservoir with the capacity of 9 million cubic meters and water treatment plant with a capacity of 105 MLD. The river intake of this scheme is also designed to operate according to total

of the river basins. The costs of developing water resource in the river upstreams are quite high as these necessitate the construction of dams, pumping stations and extensive piping networks for the purpose of delivering water to population centres. For downstream river basins with high population densities, the utilization of stormwater may be seen as a potential source of raw water to be converted into treated water.

2.0 Stormwater Utilization PotentialityBased on the study of the US Environment Protection Agency (EPA), it is estimated that 55% of stormwater that falls into urban areas become surface runoff, as shown in Figure 2. This is due to the fact that most urban areas are made up of impervious surface areas. The stormwater produced at the developed area in downstream river basin areas is extremely high and if not utilized as a source of water supply will only be wasted as it flows into the river and the sea, as well as increase the risk of flooding.

3.0 Benefits of Utilisation of StormwaterStormwater in a downstream river basin as a non-conventional source of water is expected to be a contributing factor in:• Management of constant source of water;

• Alleviating flooding problems in downstream areas;

• Raising the rate of underground water aquifer replenishment as shown in Figure 3.

• Reducing the cost of developing water supply project as dam construction is not necessary and the water supply is near to water demand areas which will then reduce the cost of laying water supply pipelines; and

• Creating a water recreation area and a tourist attraction point as is the case of Marina Barrage, Singapore.

4.0 Challenges in Stormwater UtilizationUsual ly, stormwater in downstream r iver basins contains sediments such as earth and mud, all sorts of garbage, soluble solids and pollutants. Besides these, there are also other challenges that will be faced in the utilization of stormwater,namely:• There are no specific guidelines regarding

the utilization of stormwater;

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quantity and the quality of the water in the river. A bird’s-eye view of the scheme’s location is shown in Figure 4.

Water storage in the reservoir is adequate for 3-month use by the treatment plant even if water could not be pumped out of the river. The available plant (Salak Tinggi Plant) that draws raw water from the same river, that is Labu River, could not operate for 49 days in 2009 due to pollution. With the availability of the reservoir, problems arising from pollution as had happened to Salak Tinggi Plant could be avoided.

Another benefit of drawing stormwater has been done in the Labu scheme is the proximity of the water treatment plant to the main water demand areas such as KLIA and Salak Tinggi, and this makes it possible to reduce the costs of laying the distribution system. This scheme is one that utilizes 100% stormwater (not mixed with clean water from a dam).

4.2 A Study on the Viability of Using Stormwater as a Source of Water in Pulau Labuan by JBA (Water Supply Department)Pulau Labuan is an island that has a small natural catchment area and a limited underground source of water. At present, out of the whole total area of Pulau Labuan, which is 85km², only 3km² or 3.5% of the land area in Labuan is used as catchment area of rain water which is subsequently treated before being supplied to consumers. This catchment area supplies only 11 MLD or 20% of the total amount of clean water needed in Labuan. The remaining required clean water, a total of 45 MLD or 80%, has to be obtained from Beaufort, Sabah via two pipes lines of more than 47 km long.

One (1) of the main reasons for the shortage of water in Labuan is that the catchment area that can be used as a source of water supply is too small resulting in most of the rain water or stormwater

flowing into the river and eventually going to the sea.One (1) way to overcome the water shortage is to

implement the utilization of stormwater as another source of water supply with the potentiality ofsupplementing the available sources in Pulau Labuan. Studies have been conducted in 2011 to ascertain the viability of using stormwater as an additional source of water for Pulau Labuan.

The studies indicate that the source of water supply in Labuan could be increased from 11MLD to 38.5 MLD,

that is an increase of 27.5 MLD or 2.5 times more than that obtained from the original source of supply. The main work components that must be implemented in order to achieve this objective are as follows:• Enlarging the catchment area from 3km² to 20km²;• Constructing river intake with a capacity of 40MLD in River Kina Benuwa; and• Upgrading the water storage capacity of Bkt. Kuda Dam from 4.7 million cubic liters to 7 million cubic liters.

The studies also found that to achieve this objective, the operations of the available tidal gates must be aligned so that water from the river and stormwater does not flow to the sea during wet season and that sea water does not get into River Kina Benuwa during high tides. Sea water cannot be treated with conventional treatment methodology, and in view of that, the said tidal gates must be closed

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during high tides to prevent sea water from getting into River Kina Benuwa. The illustration of the Proposed Stormwater Scheme may be seen at Figure 7.

4.3 Singapore Urban Stormwater HarvestingMarina Barrage construction was completed in 2008 functioning as source of raw water supply, f lood management, and water recreation ground for Singapore. To fulfill the objective of making it a source of potable water, the barrage functions as a dam that collects urban stormwater and prevents the inflow of salt water from the sea. The project has converted Marina Bay into becoming a fresh water reservoir and is expected to be capable of supplying 15% of Singapore current water needs of 1,300 million liters per day. This scheme also has created more variety to the sources of water supply for the island which hitherto has fully depended on imported water from Johor, the desalination of sea water, recycling of effluent, and existing catchment area.

5.0 Stormwater Development Methodology for the Treated Water SupplyGenerally, the development of stormwater as a source of water needs to have four (4) main components, namely collection, storage, treatment and distribution.

5.1 CollectionCollection method operates during heavy rain. Stormwater that flows into a river will be pumped out from the river intake that is built by the side of a river, channel,marshland or lake. Barrage or weir construction may be necessary to raise and control water flow.

5.2 StorageThe method used for storing stormwater depends on the suitability of the location and the specific requirement of the scheme. Generally, stormwater may be stored by two (2) methods, as follows:

i) Directly (in-line storage)By this method, stormwater is stored at the place it flows, such as river, pool, lake. Usually, lakes and ponds may exist naturally or are specially constructed and have extensive storage areas to maximize the quantity of stormwater collected. Such storage methods are utilized at Marina Barrage, Singapore.

ii) Indirectly (off-line storage)Usually, the stormwater needs to be pumped out and channelled into another reservoir or pond, such as to mix it up with water in an existing dam,or into a reservoir or dam specially built for the storage of raw water. A storage reservoir location may be selected to be near the water demand area and the closest and suitable water treatment plant, so as to save infrastructure cost. The method of storage such as this is adopted in the Labu River KLIA Alternative Water Source Scheme and Melaka River Bunded Storage.

5.3 TreatmentStormwater treatment methods may be classified into two (2) stages:

i) Stage 1 - Upgrading the Quality of the Raw Water• The quality of collected stormwater may be upgraded

so as to meet the predetermined criteria of a raw

water source in accordance with National Drinking Water Standard by the Ministry of Health, Malaysia. Stormwater may be treated by creating wetlands so that the contents of sediment, pollutants and pathogen may be naturally trapped and reduced by the ecosystem of the wetlands. Nevertheless, the costs of developing wetlands are high as this requires an extensive area of land.

• The construction of a reservoir or the mixing of stormwater with the water in a dam for the purpose of storage can also improve the quality of stormwater through the process of settling of sediments to lower level, destratification and aeration. Through these processes the sediments that are floating will settle down to the lower level of the reservoir, the oxygen content of the water can be enhanced through aeration and simultaneously prevent the formation of algae, pathogen and dissolved iron and manganese. This technique has been implemented for the supply of raw water for Labu River Water Treatment Plant in Sepang and Melaka River Bunded Storage in Melaka.

• River Bank Filtration (RBF) technique such as the drawing of raw water from wells that are built by the side of rivers, lakes, and wetlands. Stormwater that has seeped into the ground will undergo a natural filtration process and the water that flows into the wells will become clearer with less or no pollutants and pathogen. Raw water in the wells will then be pumped into water treatment plant. This technique has been implemented in the Water Treatment Plant in Jeli and Pintu Geng projects in Kota Baru, Kelantan. This technique is very effective and the cost is lower.

ii) Stage 2 – Raw Water Treatment• Raw water source from stormwater can be treated by conventional or non-conventional treatment methods. The conventional method is the same as ordinary treatment process adopted at conventional water treatment plants whereas a non-conventional method uses more complex technology and involves higher costs compared with the conventional one. Examples are the use of membrane such as reverse osmosis, disinfection by UV light, ozone and others. It is confidence that stormwater that has undergone the process raw water quality upgrading is suitable for conventional treatment process.

5.4 DistributionThe distribution system of treated stormwater to consumers is the same as the distribution system of the ordinary water. If the stormwater scheme is developed for the benefit of local population or nearby localities, the distribution system cost will be low.

6.0 ConclusionStormwater in downstream of r iver basins has the potentiality to be optimized as a source of raw water in this country, especially in localities that have been identified as experiencing shortage of treated water supply, by using suitable and practical methods. The development of stormwater sources too can reduce the risk of flood in downstream of river basin areas. The successful outcome of making stormwater as a source of water supply has been proven through the implementation of several projects inside and outside the country. An action plan should be drawn up and implemented to enhance the usage of stormwater as a source of treated water supply.

32 WaterMalaysia

Featured Article

Positive Dam Operation ManagementAbstractThough Malaysia is known to have abundance of annual rainfall, yet many dams have been constructed and the process is on-going to store water during the rainy spell for use during the dry spell.

The reasons for constructing dams are due to the following:-• Uncertainty of rainfall in respect of rainfall intensity and

occurrence frequency. These phenomena occur more frequently in recent years.

• Rain falls more often not in catchment area.• Influenceofglobalweatherchanges.• Continuous clearing of forested areas in the country

to sustain development in housing and industry.• Pollution of raw water sources either natural or man-

made.

This paper will highlight positive operation procedures to identify the available stored volume of water at any time and appropriate and safe volume of dam release when required to avoid over abstraction.

1.0 Dam ClassificationDams are constructed in the country for single or dual purposes. The following are some of the examples:

ClassificationByFunction

To note: Water Supply Authorities have the control over dam level, point of abstraction and quantity of dam release (only on dams owned and administered by the Authority).

Pointofabstractionhas the influenceon rawwatervolume and treatment. In the norm, water from the lower level of the dam, i.e. at the Hypolimnion contains iron and manganese in the solution form which pose treatment problems.

2.0 Acquisition of Data and ApplicationTo regulate safe quantity of dam release, it is necessary to collect the following required data daily at intake and at dam.

3.0 Understanding of Relevant TermsUnderstanding of the following terms is important and imperative.

3.1 Critical VolumeThis is an ambiguous term and Dam Operators’ perception or understanding of the term varies.

Some regard it as further dam release is not possible, while others, dam release is possible but quantity of release has to be curtailed or controlled. In my opinion, criticalvolumeisdefinedasthatavailableactivevolumein dam where dam release quantity has to be regulated or controlled to conserve water in the dam to meet contingency water demand in any possible dry weather spell in the future.

Critical volume can occurs at any dam and is brought about by situation of no rainfall and increase in consumers’ demand. It has no universal value and its volume and occurrence varies from dam to dam.

Foreffectiveandsafedamoperationmanagementto avoid reaching critical volume, the available active volume in the dam should be maintained at a threshold of not less than 50%, preferably more at all time.

3.2 Active and Dead VolumeActivevolumeinanydamisdefinedorcalculatedasthetotal volume in dam minus the dead volume.Active Volume = Total Volume – Dead Volume• Total Volume is the available volume between the

designed topwater level to the floor of thedam.However, once the dam is in operation, the top water level is referred to as dam water level. Please note that

WaterMalaysia 33

Featured Article

this dam level is a variable parameter. Thus the total damvolumeisnotafixedvolumeinanydamatalltimesanditfluctuatesaccordinglywithdamlevel.

• Dead Volume is the volume between the level of the lowestdraw-offand the floorof thedam. It hasadefinitevolumeinanydam.

• Active Volume is the volume between the dam water level and the level of the lowest draw-off. This volume varies for the same reason as for Total Volume.

Figure1illustratesthefollowing:Total volume = Designed top water of 57.0M down to level 32.0M.Deadvolume=From32.0Mtofloorofdam.

4.0 Advanced Formulation of Reference DocumentIntroductionThese documents need to be prepared only once for any dam and they will serve as reference for positive dam operation procedures at any time.

They are as follows:-• Available active volume between Draw-off. Normally

three or more draw-offs are incorporated in dams.• Availableactivevolumeat0.01Morat lesserdepth

interval.

• Contingency Plan on dam release at selected specificvolumeofdamrelease.

4.1 Available Volume Between Draw-offBetweenSelectedDepth•Definition:Elevationorlevelofwaterinreservoircoinciding with the available volume.Figure 2above refers to the Sungai TinggiDam(formerlyknownasSungaiBulohDam)isselectedas example.(i) Characteristics of DamTop Water Level (T.W.L) = 57.00MNumber of Draw-offs = 3 in number at 49.00M, 41.00Mand32.00MlevelTotalActiveVolume =21,668.01MG(Reference to T.W.L)

(ii)TonotethesalientdataasshowninFigure2• The drastic reduction in available active volume betweendraw-off,from51.78%in1stdraw-offto16.24%in3rddraw-off.•Reductioninactivevolumeof15.40MGbetween

level57.00Mand53.00Mper0.01Mdepthdropinlevelto7.71MGbetween45.00Mto41.00M.

The reason for the drastic reduction in active volume is duetotheconfigurationofanydami.e.itisnotcylindricalbut trapezoidal. This is also the reason for suggesting earlier on in this paper to maintain at least 50% of the active volume, preferably more at all times.

4.2 Available Volume At 0.01M Depth Interval or LessThis document is prepared by scaling from theDamConsultant’sElevation-Storage-Area Curve found in the Operation, Maintenance and Surveillance Manual as showninFigure3.

Basedon the Storage/ElevationCurve,Table1isproduced.

Pleasenote that Table1only shows thesample tabulation between dam level 56.99M to56.60M, i.e.partialofoveralltabulation.

34 WaterMalaysia

Featured Article

4.3 Contingency Plan For Dam Release At Specific VolumeWhen available active volume in the dam recedes, contingency plans can be formulated in advance. The objective of a Contingency Plan is to regulate dam release quantity to sustain appropriate treatment plant production quantity and to conserve volume of active volume in the dam to tide over the pending drought period.

Fo l l ow ing i s an examp leformulated on 5th July 2002 for Sungai Tinggi Dam.

(i) Determination of volume of dam releaseDam Level = 53.32 MAvailableActiveVolume=74.120MLor75.26%ofTotalActiveVolumePlanning Strategy to release initially from 53.32 M to 49.00 M level and subsequently to 47.00 M.

Note the salient information in TABLE2• Available active volume is 25,240 ML between 53.52 M and 49.00 M. Thereafter it reduces drastically to8,750MLbetween49.00Mand47.00 M.• The drastic reduction of active volume in percentage.

TABLE 3 fo l low ing shows thecorresponding sustaining period at varying dam release quantity.

For information, before theconstruction of Sungai Selangor Dam, which has a storage capacity of 2.38 t imes of Sungai T inggiDam, the latter releases water to augment low river flow in SungaiSelangor. Water is abstracted from Sungai Selangor to supply raw water to Phase I, II and III of the Selangor Treatment Plants with atotaldesignedcapacityof2,600MLD.Butin2002,thesetreatmentplants were not in full production. The estimated total daily production was 2,290 MLD, inclusive of 300 MLD as compensation water. As such, the rate of dam release quantity variedbetween300to800MLDtoaugmentvarying low river flow inSungai Selangor.

Basedon theexamplegiven,a series of Contingency Plans of varying dam release rate and sustaining period for intending volumes of dam release can be formulated for any dam in advance. Such contingency plans formulation need to be prepared once only.

ConclusionReferring to data collected and documents prepared in advance as suggested, proper and efficient dam operation will result.

The reason being the Operator has constant knowledge of dam level, total active volume and available active volume between depth intervals. These information, coupled with the contingency plans prepared in advance, will enable the operator to decide on the active volume to maintain to tide over any impending dry spell.

WaterMalaysia 35

Featured Article

A Simple Method for Dam Water Volumetric ModellingIntroductionRecently, due to the increasing demand of water supply, the management of dam water quantity has become critical in coping with the demand and in assisting the decision making on the need for more pumping or for resorting to water rationing to avoid disaster. A simple dam volumetric modeling can be applied in volumetric projection that can greatly assist in managing dam water resources.

The following is an example of a simple dam volumetric modeling that has been applied for a dam in Malaysia (to avoid complication, the name of the dam is not disclosed) by the author from year 1994 to 2007. The objective of the modeling was to manage the Dam storage so that the storage was maintained at an optimum level that minimized pumping (cost) and avoided overflowing from the dam.

BackgroundThe Dam was operated above its safe yield with supplementary pumping from a river and from another dam. The function of the simple dam modeling is acting as a decision making tool for pumping schedule that could maintain dam level at optimum range with minimum pumping cost that will avoid any overflow of the dam (wasting of pumping electrical energy cost). During the period from 1996 to 2007, the model was successfully applied as a method in maintaining the dam level at optimum range with the lowest pumping cost and did not result in any overflow from Dam.

The model ing was based on mathematic and hydrology basic that operated with Microsoft Excel File. The model projected the Dam level on a weekly basis and used as a good decision making tool for dam water resources management. In 1999, the simple dam modeling namely “Addie’s Model” was presented and discussed in an international conference. Formulas For Simple Mathematic Dam ModelingThe simple modeling was based on the following formulas:

Dam Storage,V = aL2 + bL + c -------------------------- (1)Where, V = Dam Storage in Million m3,a, b, and c are constants for the formula specifically derived from the dam-volume relationship curve.Then a formula with L in the function of V can be established to project the dam level. From formula (1),V = aL2 +bL + CV/a = L2 +bL/a + C/aV/a = L2 + bL/a + (b/2a)2 – (b/2a)2 +C/a

V/a = (L+ b/2a)2 –(b/2a)2 + C/a(L+ b/2a)2 =V/a – C/a + (b/2a)2

L + b/2a = [V/a –C/a + (b/2a)2 ]1/2

Thus, the Dam Level,L = [(V/a –C/a) + (b/2a)2]1/2 +b/2a ------------------------ (2)The new dam storage after one week,V1 = Vo + VR + VP – VC - VE ----------------------------------- (3)Where,V1 = new Dam storage volume (m3) after one week.Vo = Existing or previous Dam level (m)VR = Volume of water from rainfall or yield (ML)Vp = Volume of water pumped into the DamVC = Volume of water consumed by WTP or releasedVE = Volume of water evaporated The volume of water from rainfall or yield, VR = d X R X Ac + (1-d) X ADS-------------------------------- (4)Where, d = Catchment factor (normally between 0.35 to 0.65 derived from rainfall yield data)R = Projected rainfall in mm Ac = Catchment area in (km2) ADS =Dam Surface Area in (km2)

Dam Level ProjectionWith the formula described above, a dam level then can be projected on a weekly basis using Excel as shown in Table 1 below:

The actual dam level was keyed-in weekly to check

against the projected level. The projected rainfalls volume were derived from 50 years of monthly rainfall data and divided by the weeks of the month or as forecasted by meteorological department at the area. The pumping and consumption volume were as planed and the modeling dam level could be re-projected as and when the pumping or production plans were changed.

36 WaterMalaysia

Featured Article

Validation of ModelBefore using the Model, the Model was validated by making projection on the previous data, i.e., actual versus projection. The performance of the model against the previous actual data is shown in Figure 1 below.

Although the Model was not 100 % accurate, it is close enough or acceptable for projection. In the validation process, the catchment constant, d as mentioned above was adjusted so that the curve fed best to the actual data.

The Model PerformanceThe actual performance of the dam Model is shown in Figure 2.

The above is an accurate projection due to the prediction of rainfall was actually about 30% lower than average and the production as well as the pumping plan were adhered to. In some cases, the projected Model levels deviated from actual level due to change of rainfall

pattern, production (or release) and pumping plan. In that case, re-projection based on actual level, new production plan, new pumping plan and new projected rainfall can be made accordingly.

Application for Dam ManagementWith the projection of the Model , the dam operator can p re d i c t t h e l eve l of the dam under dif ferent scenar ios based on ex i s t ing l e v e l , p r o j e c t e d rainfall and releases ( o r p r o d u c t i o n ) . Therefore, it is useful for making decision in pumping if water resource is available or in resorting to other action at least three months earlier.

It is also a tool for m a i n ta i n i n g d a m level at a su itable range with optimized pumping so that over

pumping can be avoided. The Model also could predict the dam Level and storage volume for drought management and risk management so that crucial plan can be formulated proactively.

RecommendationThe Simple Dam Model is relatively easy to use with

Microsoft Excel Worksheet and has been proven effective for water resources management at optimum cost. In actual fact, the Simple Dam Model is very low in cost as a tool to acquire since it is able to run on any computer without purchasing of specific software. Water operator that is managing dam should try to use this low cost tool for effective resources management.

WaterMalaysia 37

Young Water Professionals

The Young Water Professionals (YWP)Dr Norhayati (right) made Malaysia proud when she

was awarded the prestigious IWA Young Water Pro-fessional Award in Busan, Korea for her excellent work in wastewater treatment and her active role in the activities of the Association.

NEWS ON ELECTION AS CHAIR OF IWA YOUNG WATER PRO-FESSIONAL STEERING COMMITTEEA senior lecturer at the Faculty of Biosciences and Medi-cal Engineering, Universiti Teknologi Malaysia (UTM) Johor Bahru, at 34, Dr Norhayati Abdullah is actually a pride of the nation as the International Water Association (IWA) has elected her as one of the IWA Board Members. She attended their first meeting on 26 September in Lisbon fol-lowing the IWA World Water Congress and Exhibition 2014.

This is a very meaningful appointment for her as she was also inaugurated as the Chair for the International Young Water Professional (YWP) Steering Committee for 2014 – 2016 in Lisbon. Dr Norhayati is the youngest Malay-sian to sit on the board of IWA and among the nation’s young professionals who holds an important job as Council Member of the Malaysian Water Association (MWA) and Co-Chair of the Malaysian YWP Chapter.

On her appointments, Dr Norhayati aims to develop strong friendship and partnership between YWPs taking into their cross cultural personalities, characters and scien-tific background. She looks forward to delivering solutions for future water beyond the YWP perspectives as she said, “because we are already living towards the future.”

IWA recognizes her active participation in various events and activities it has organized since 2000 and this brought her travel to various countries specifically for IWA dedicated programs. In 2012, as UTM ambassador, she made Malaysia proud when she was awarded the prestigious IWA Young Water Professional Award in Busan, Korea for her excellent work in wastewater treatment and her active role in the activities of the Association.

Fourteen years after her first steps as one of IWA young water leaders, her efforts have resulted in great career achievements and contributions to the water sector. Amongst them, Dr Norhayati is especially pleased with the widespread adoption of her signature program, the IWA-UTM International Publication Workshop activities.

Dr Norhayati and her team from the UTM Water Research Alliance and Institute of Environment and Water Resource Management (IPASA) managed to organize two series of publication workshops in 2012 and 2013 receiving many in-ternational participants from countries such as Austria, Germany, Hol-land, Indonesia, USA, England and South Af-r ica. The event was a success and she is par-ticularly grateful for the immense support and motivation shown by the IWA mentors for the workshop; Professor Gustaf Olsson from Lund University, Sweden and the Professor Helmut Kroiss from Vienna Institute of Technology, Austria.

Additionally, Dr Norhayati is currently working to gather YWPs from academia, utilities, research and consultancy – among others – to create the Malaysian YWP Chapter in cooperation with MWA and UTM as part of her contri-butions to IWA. Furthermore, Dr Norhayati has also par-ticipated as one of IWA Program Committee members at the 3rd IWA Development Congress and Exhibition held in Nairobi, Kenya. Her upcoming events include the 2nd IWA Board Meeting in Vienna, Austria next January 2015, the 2nd IWA Malaysia Young Water Professionals Conference 2015 (YWP15) to be held in Kuala Lumpur from 17-20 March 2015. She will also chair the 3rd IWA-UTM International Publication Workshop in March next year.

Dr Norhayati obtained her degree in Civil-Environmen-tal Engineering from UTM in 2000, Masters in Environmental Engineering from Newcastle University, England in 2004 and PhD in Biosciences via collaborative work between UTM and Newcastle University in 2012. She is wife to Dr Ali Yuzir and mother to three boys; Adam (11), Harris (8) and Kareem (2).

The Malaysia Young Water Professionals INTRODUCTIONThe Malaysia YWP was launched in 2010 under the aus-picious governing of The Malaysian Water Association (MWA). Our first Malaysia YWP Conference was held in the same year marking our first official event via collaborative organizations with MWA, IWA and our sponsors. MyYWP, together with UTM and MWA began collaborative works in organizing several YWP events such as The IWA-UTM International Publication Workshop, which was held in 2012 and 2013 in Johor Bahru. We’ve also registered our chapter with IWA.

YWPS NETWORK FROM BOTH INDUSTRY AND ACADEMIAIn Malaysia, together with the enthusiastic YWPs from both the industry and academia, I foresee a strong integration of ideas between these two major components that bind the water sector together. At the moment, we have Univer-siti Teknologi Malaysia (UTM), who has been our strongest support since 2000 from our first IWA conference held in Kuala Lumpur. Since then, we have continued to reach out to many YWPs in Malaysia from both the industry and academia. Our membership had increased via MWA and an academia from UTM was appointed as the regional IWAYWP Steering Committee. I find it easier when we

BY Mr Shamsul Fahmi Mohamad Fadzli Chair, Malaysia YWP

38 WaterMalaysia

Young Water Professionals

The 2nd IWA Malaysia Young Water Professionals Confer-ence 2015 (YWP15) is the second conference organized

by the Malaysia Young Water Professional (MyYWP) with Universiti Teknologi Malaysia (UTM) under the auspices of the International Water Association (IWA) and the Malay-sian Water Association (MWA). This conference aims to provide an international forum for young researchers and senior professionals in water and wastewater sciences, to present their work and meet their peers in multidisciplinary fields of water for career advancement. YWP15 encourag-es scientific dialogue, knowledge transfer and mentoring between young and senior water professionals of various backgrounds and expertise. The conference will also mark the establishment of the Malaysian YWP program focusing on creating effective communication network for YWPs at national and global level. It is also important to recognize the vital contribution of YWPs within the water sector as young professionals are the future of the sector.

The topics that will be discussed include:• Public, Health, Sanitation and Hygiene• Water Resources and Supply• Water and Wastewater Treatment Technologies/ Systems

• Water Reuse and Reclamation• Point and Non-Point Source of Pollution• Emerging Contaminants for Water• Water and Energy Nexus• Water and Food Security• Sustainable and Green Technology for Environment• Water Policies• Integrated Catchment Management• Capacity Building• Data Management and Statistics

YWPs, researchers, policy-makers, academics, stu-dents and the broader community active in contributing solutions to the countless of environmental and water questions that are posed to ensure sustainability, are welcome to meet in Kuala Lumpur, Malaysia to share their knowledge and visions for the future.

E-mail: mywp@utm.myWebsite: http://www.utm.my/ywp15/Conference Secretariat: Institute of Environment and Water Resource Management (IPASA), UTM Johor Bahru, 81310 Johor Bahru, Malaysia. T: 07-5532507; F: 07-5531575

could work within our own circle of friends consisting of indus-trial players and simi-larly the academia. While I followed up our initial reach out among the indus-tr ies, Dr Norhayati ( C o - C h a i r ) a n d Myzairah (Secretary) did wonderful efforts on introducing the YWP concepts to the academicians. Cur-rently, we have two advisors namely I r Syed Mohd Adnan Manso r A l habsh i (MWA President) and Prof. Dr. Zulkifli Yusop (Dean, UTM Water Research Alliance).

MALAYSIA YWP LINK TO IWA’S YWP INTERNATIONALI have heard of successful development of YWP Country Chapters in South Africa, Austria and Japan. Our Ma-laysian YWP Chapter is setup as part of an established institution which is MWA and I am currently managing the chapter with the help of IWA YWP Program Officer, Ms Kirsten de Vette, particularly on our documents and constitutions. As we are still developing the chapter, our

members consist of YWP volunteers from all over Malaysia. Our motivation is high as IWA is internationally recognized for its various and multi-disciplinary water efforts. With IWA being global, memberships become very much popular within the YWPs knowing that it is relevant for them to join us for the benefit of our country.

SOME ACTIVITIES OF YWP MALAYSIAWith the support from Dato’ Seri Ir. Dr Zaini Ujang, who is currently the Secretary General II of the Ministry of Education Malaysia, our signature program which is the IWA-UTM International Publication Workshop received international recognitions as other countries have been organizing similar workshops such as in South Africa re-cently. UTM hosted the first two publication workshops in Johor Bahru Campus with 20 international participants receiving the UTM Water Scholarship to support their travel cost. The facilitators for the one-week workshop included Prof. Gustaf Olsson from Lund University, Sweden and Prof. Helmut Kroiss from Vienna Technical University, Austria. We are also very fortunate as IWA has helped us a lot in advertising our programs and activities on IWA’s website.

After our IWA Malaysia YWP Conference in 2010, UTM, via collaborative efforts with MWA and IWA will be organiz-ing the second conference in March 2015 in Kuala Lumpur.

Our programs have encouraged a more vibrant and dynamic scientific communication and engagement in water sciences among YWPs worldwide. In the near future, our focus would be on strengthening Malaysia YWP by increasing our memberships and encouraging participa-tions in IWAYWP programs.

WaterMalaysia 39

News Headlines Summary

KUALA LUMPUR, 16 Oct (Bernama) -- The Energy, Green Technology and Water Ministry (KeTTHA) is expected

to launch the green technology masterplan early next year as Malaysia aims to tap the RM70 billion green economy. The masterplan will run till 2030 and is aimed

at propelling the growth of Malaysia’s green sector.The masterplan will spell out action plans for five main

sectors, namely, energy, building, transport, water and waste management.

Green Technology Masterplan To Be Launched Early 2015

KUALA LUMPUR: 30 Oct (Bernama) - The government has allocated RM975.37 million to replace old and

leaking water pipes throughout the country. Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Johnity Ongkili said based on the data of the 2014 Malaysia Water Industry Guide, there are about 43,390 km of old pipes made of asbestos cement in the country.

“The estimated allocation needed to replace all the

pipes is RM11 billion and the amount is too large under the development budget,” he said in a written reply in Dewan Rakyat here, today.

In this regard, Ongkili said the government had introduced a national water supply service industry restructuring scheme to enable water operators to fund the water supply infrastructure, including replacement of old pipes through Pengurusan Aset Air Berhad.

ALOR SETAR 3 Nov 2014: Rising demand for water sup-ply in the wake of more development in Langkawi

may give rise to a critical water problem in the resort island by 2020. Deputy Energy, Green Technology and Water Minister Datuk Seri Mahdzir Khalid said Syarikat Air Darul Aman (Sada), had proposed that more water be channelled from the Kedah mainland to the island,

whether via the construction of a water treatment plant or the upgrading of existing plants.

“Langkawi requires additional water from the main-land because there is just not enough supply on the island,” he told reporters after a briefing on the restruc-turing of the Kedah water supply here yesterday.

KUALA LUMPUR: 10 Nov (Bernama) - Thirty companies in Selangor suffered huge losses due to the water

crisis in the state early this year, said Deputy Minister of Energy, Green Technology and Water in Parliament. He said information obtained from the Malaysian In-vestment Development Board (MIDA) showed Nestle suffered losses of RM15 million daily and Monin Asia (RM112 million a month), while Panasonic had to let go

of orders worth RM40 million. Huge losses were also suffered by industries involved

in food processing and beverage, rubber, chemical/oleo chemical, electrical and electronic, tourism and small and medium industries. He said the water supply crisis in the Klang Valley, which had been on going since 2012, resulted in many development projects in Selangor and Kuala Lumpur to be put on hold.

KOTA KINABALU (14 Nov): Consumers in Sabah will have to fork out more for their water bills if they ex-

ceed their basic consumption needs under a new water tariff from Jan 1, 2015.

The current flat rate of 90 sen per cubic metre of water imposed since 1982 would now be restructured as part of efforts to meet growing water management

costs, while encouraging water conservation. Under the new structure, water tariffs were divided into 11 main categories, including Domestic 1 (individual domestic), Domestic 2 (apartment, condominiums with facilities/bulk metre) and Domestic 3 (flats without facility bulk metre).

RM975.37m to replace country’s old water pipes

Langkawi may face water woes

30 companies suffer losses due to water crisis

Big users of water to pay higher tariff

40 WaterMalaysia

News Headlines Summary

KUALA LUMPUR: 24 Nov (Bernama) Construction of the Langat 2 Water Treatment Plant (LRAL2) project has

reached 15% and is expected to be completed on April 30, 2017, parliament was told today.

Deputy Minister of Energy, Green Technology and Water, Datuk Seri Mahdzir Khalid said the progress of the project, scheduled for completion in 36 months, was up to Oct 31.

Via the project, the supply of treated water can be channelled to the people of Selangor, Kuala Lumpur and

Putrajaya in the second quarter of 2017.Mahdzir said the Raw Water Transfer Project from

Pahang to Selangor capable of supplying 1,890 million litres daily was expected to be completed by the end of the year.

“The project has reached 98.4% up to Oct 31. The in-terface, Semantan pump station and twin pipeline have been fully completed on May 30. As for Kelau Dam, the progress has reached 85.7% while the water distribution tunnel is 98.7% completed.”

Kuala Lumpur : 26 Nov (Malay Mail) – Selangor expects to complete its takeover of the state’s water conces-

sionaires along with their assets and liabilities by Septem-ber 2015, Mentri Besar Azmin Ali said today.

“The water industry will be in full control (of the Selan-gor government) after the takeover of Abass and Splash

in line with the interests of the people. It is expected to be completed in the third quarter of 2015, seeing as the main agreement between Air Selangor (Sdn Bhd) and Splash is for a year starting from September 12, 2014,” Azmin said in response to a query during question and answer time in the State Assembly.

KUALA LUMPUR: 5 Dec (Bernama) Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) expects to reduce non-

revenue water (NRW) in Selangor, Kuala Lumpur and Putrajaya from 33.80% to 30.75% within two years via the Smartball system.

Syabas spokesman said 2,400km of pipes would be examined using the system over a two-year period. Sya-bas hopes to save up to 66 million litres of treated water

per day, which is 1.5 times the capacity of the Wangsa Maju water treatment plant.

Until November, 500km of pipes were inspected us-ing the system and found 250 big and small leakages, which saved 13.9 million litres of treated water a day,” he told a news conference at the Syabas headquarters here today.

SHAH ALAM: 5 Dec (Sundaily) - The Selangor water restructuring exercise appears to be far from comple-

tion as Gamuda Bhd explains that discussions with the state government is still on-going, and is confident that the federal government will not invoke Section 114 of the Water Services Industry Act (WSIA) 2006 to take over its water assets.

According to Gamuda managing director Datuk Lin Yun Ling, the group is still holding out for a settlement amount which will see a loss for the group.

Speaking at a press conference after the company’s AGM and EGM here yesterday, Lin reiterated his view that the offer price should be at RM2.8 billion book value, but said that divestment of Splash would be possible at a “fair value”.

The Selangor state government however is offering a fraction of this for Gamuda’s stake. At RM250.6 million the offer price for Splash however, would result in a divest-ment loss of RM920 million for 40% stakeholder Gamuda.

Langat 2 water treatment plant is 15% completed

Selangor Completes water takeover by September 2015

Syabas introduces smartball system to reduce NRW

Gamuda still in talks with Selangor on water deal

WaterMalaysia 41

News Headlines Summary

Biostyr™: the compact biofiltration solution

www.veoliawaterst-sea.com/municipalities/wastewater or tel: +603-5633 6393

Veolia’s patented Biostyr™ biological aerated filter (BAF) process combines biological treatment, clarification, and filtration into one compact system.

WATER TECHNOLOGIES

> Adaptable to any kind of influent> Compact process, low footprint> Combined biological and filtration process:

no further clarification needed> Modular design, therefore quick response to

high load variations

> Buoyant media bed (Biostyrene™): backwashing by gravity

> Only treated water is in contact with the atmosphere, even during backwashes; thus, lack of odor nuisance

> No clogging and easy access

Ad_Malaysian_Water_Magazine.indd 1 09/09/2014 08:42:32