Water Resources Management Financing in Malaysia
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Transcript of Water Resources Management Financing in Malaysia
PREVENTING FRESHWATER BANKRUPTCY 1
Regional Workshop onWater Resources Management Financing
Report on National Workshop- MALAYSIA -
Yangon, Myanmar3rd October 2013
PREVENTING FRESHWATER BANKRUPTCY 2
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Organisation• Main issues of WRM• Paper presentation
PREVENTING FRESHWATER BANKRUPTCY 3
Introduction- Organisation
• Jointly organised by Selangor Water Management Authority or Lembaga Urus Air Selangor (LUAS) and Malaysian Water Partnership (MyWP)
• 19th July 2012
• Shah Alam, Selangor
PREVENTING FRESHWATER BANKRUPTCY 4
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Organisation• Main issues of WRM• Paper presentation
PREVENTING FRESHWATER BANKRUPTCY 5
Introduction- Main issues on WRM
Water pollution
FloodsDroughts• Financial constraint to develop water services infrastructure.• A very challenging task to finance efforts to rehabilitate polluted
water resources and conserve pristine water resources.• Water resources is under the jurisdiction of State Governments.
PREVENTING FRESHWATER BANKRUPTCY 6
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Organisation• Main issues of WRM• Paper presentation
PREVENTING FRESHWATER BANKRUPTCY 7
Introduction- Paper presentation
• Water resources allocation in Australia
SKM Consulting Engineers
• Public-private partnership (PPP) and developing a funding solutionKPMG Malaysia
• Financing of WRM in Selangor LUAS
PREVENTING FRESHWATER BANKRUPTCY 8
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Commitment of State Government
• Financing of WRM
PREVENTING FRESHWATER BANKRUPTCY 9
WRM in Selangor- Commitment of State Government
Supports sustainable
environmental management
Addressing global warming
Increasing green lungs
Instill the culture of
environmental conservation
PREVENTING FRESHWATER BANKRUPTCY 10
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Commitment of State Government
• Financing of WRM
PREVENTING FRESHWATER BANKRUPTCY 11
WRM in Selangor- Financing of WRM
Legal support
Intangible sources
Tangible sources
• LUAS Enactment
• Levy collection;• Government aid;• Investment gains;• External sponsorship;• Compensation claim;• Compounds; and• Miscellaneous charges.
• Imposition of mandatory or prohibitory duty;
• Inter-departmental collaboration;
• Social responsibility; and• Savvy service delivery.
PREVENTING FRESHWATER BANKRUPTCY 12
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Water management functions and water user services
• Financing mechanisms• Options/incentives,
recommendations and stakeholders• Recommendations
PREVENTING FRESHWATER BANKRUPTCY 13
Water management functions• Assessment, research and
data collection• Public awareness and
information• River basin/catchment
management• Advocacy and capacity
building• Flood control & drainage• Environmental and
ecosystem protection• Water quality and pollution
control• Multipurpose projects
Water user services• Domestic & industrial water
supply• Sewerage• Agriculture & livestock• Navigation• Hydropower• Fisheries (aquaculture)• Mining• Recreation, sport, tourism,
etc
PREVENTING FRESHWATER BANKRUPTCY 14
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Water management functions and water user services
• Financing mechanisms• Options/incentives,
recommendations and stakeholders• Recommendations
PREVENTING FRESHWATER BANKRUPTCY 15
Water management functionsAspects Financing mechanisms
Assessment, research and data collection
Government funds International funds Revenues from the sale of data and
related publicationsPublic awareness and information
Government funds Private funds (CSR) International funds NGO generated funds
River basin/ catchment management
Government funds Local government funds International funds Payment for ecosystem services (PES)
Advocacy and capacity building
Government funds Private funds (CSR) NGO generated funds
PREVENTING FRESHWATER BANKRUPTCY 16
Water management functionsAspects Financing mechanisms
Flood control & drainage
Government funds Local government funds Contributions from developers
Environmental and ecosystem protection
Government funds Local government funds PES
Water quality and pollution control
Government funds Local government funds Contribution from water operators Contributions from developers PES Polluter pays principle
Multipurpose projects
Government funds Private funds International funds PES Polluter pays principle
PREVENTING FRESHWATER BANKRUPTCY 17
Water user servicesAspects Financing mechanisms
Domestic & industrial water supply
Water Asset Management Company (Pengurusan Aset Air Berhad)
Government funds Private funds Revenues
Sewerage Government funds Private funds Revenues
Agriculture & livestock
Government funds Private funds
Navigation Government funds Private funds Revenues
PREVENTING FRESHWATER BANKRUPTCY 18
Water user servicesAspects Financing mechanisms
Hydropower Government funds Private funds
Fisheries (aquaculture)
Government funds Private funds
Mining Private fundsRecreation, sport, tourism, etc
Government funds Private funds Revenues
PREVENTING FRESHWATER BANKRUPTCY 19
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Water management functions and water user services
• Financing mechanisms• Options/incentives,
recommendations and stakeholders• Recommendations
PREVENTING FRESHWATER BANKRUPTCY 20
Water Management FunctionsOptions/ incentives
Tax incentives Acknowledgement/recognitions/awards/certifications Royalty payment Concession fee Ownership
Recommendations National focal point for water resources Policies including gazettement of water catchments Education syllabus and river rangers National public campaigns including media and others Stakeholder participation National water forum and exhibition Political commitments River basin masterplan based on IWRM principles Full implementation of Stormwater Management Manual River front developments Flood risk maps Regulated development Pollution control through total maximum daily load Dam monitoring and maintenance as well as ERP for dams Polluters pay principle
PREVENTING FRESHWATER BANKRUPTCY 21
Water Management FunctionsStakeholders Government departments and
agencies Learning institutions Religious institutions Companies Water services operators Farmers Public NGOs/CBOs Media All living things (to include
environment and ecosystems)
PREVENTING FRESHWATER BANKRUPTCY 22
Water user servicesOptions/incentives Feed-in-tariff (hydropower)Recommendations Integrated water services industry
Review tariff towards full cost recovery Improve water services efficiency Enforce effluent discharge standards Licensing fees Penalties for violations Water demand management and wise water use No political interventions Waste to energy facilities
Stakeholders Government departments and agencies Water services operators Water services and resources regulators Shipping and transport operators and regulators Water users
PREVENTING FRESHWATER BANKRUPTCY 23
Presentation roadmap
Introduction
WRM in Selangor
Output from the
workshop
• Water management functions and water user services
• Financing mechanisms• Options/incentives,
recommendations and stakeholders• Recommendations
PREVENTING FRESHWATER BANKRUPTCY 24
Recommendations
Sources of funding
Governmentfunds
Penalties
Related fees
Grants and aid
Investment funds
User payments
PREVENTING FRESHWATER BANKRUPTCY 25
Recommendations• Fund water resources functions• Water resources conservation is multi sectors– Harness the resources of other parties– Water problems cannot be solved unilaterally– Implement payment for ecosystem services
• Avoid blanket subsidies • Creation of pollution markets• Application of green technologies• Develop Environmental Funds• Set up a Water Bank
Thank-you