Datuk Ahmad Faizal Abdul Rahman answers your 10 questions.
When will Malaysians be able to drink off the tap like those in advanced countries? Vincent Khoo, Malacca
To drink safely from the tap, the entire water supply chain must achieve a certain quality and this infrastructure must be continuously maintained.
The process of water treatment starts at the intake, then channelled to the treatment plant for processing and finally delivered through a water distribution system to individual houses, factories and buildings. When the treated water leaves the treatment plants, the quality has been tested to ensure full compliance to the Health Ministry (MOH) and World Health Organisation (WHO) standards, hence, it is safe to drink.
However, before it reaches the individual homes, it goes from the treated water pumps to balancing reservoirs through pipelines and then stored at service or local reservoirs/water tanks. At any point along the distribution system, if the system is not properly or regularly maintained, the originally drinkable treated water may be contaminated by silts, organisms, metals etc. Reservoirs, pipelines and internal reticulation systems need to be cleaned and flushed regularly. These include the storage tanks in each individual house or building.
Further, some of the pipes in the distribution system are made of asbestos cement which is more prone to bursting. This is evidenced in our high national non-revenue water level (NRW). The constant repairing of these pipes may further give rise to these contaminations through infiltration or seepage.
In advanced countries, it is possible to achieve the safe drinking water level at the taps due to several factors; for example, the quality of materials used such as stainless steel pipes or direct pumping of treated water from treatment plants to homes. There are also punitive regulations to ensure that every consumer maintains the internal water system to a certain standard.
All these, however, come at significant prices to be paid by the consumers of which we, in Malaysia, may not afford or be prepared to do. In conclusion, we can only look forward to drinking directly from the taps when most of the aging pipes are refurbished or replaced (NRW level of below 10% would be ideal) and proper maintenance programs are carried out by the operators and the public or building management. This can only be possible when the revenue from sale of treated water is sufficient to fund the operations and maintenance.
How would you describe the state of “water affairs” in Malaysia in particular, Selangor's water industry? Lam Lee Cheng, Desapark City, KL
In Selangor, efforts are ongoing for the past couple of years to consolidate the industry but thus far, the policy makers have been unable to come to a practical compromise. We are very concerned that the impasse will result in an inevitable water crisis in the near future due to the lack of capital development activities to improve and increase the infrastructure and treated water supply. Such development cannot be implemented overnight. Currently, most, if not all water treatment plants in Selangor have been operating continuously at full capacity without any reserve margin (during peak period) for the past year due to strong demand from the Klang Valley's domestic and industrial users. This cannot continue indefinitely as equipment wear and tear will eventually set in. As long as our population and economy keep growing, the demand for water will keep on increasing. Hence, there is an imminent situation where demand will soon exceed supply.
Do the relevant local water authorities have any plans to convert sea water into drinking water or for industrial use? Bernard KH Lim, Penang
Naturally, the possible use of sea water has been extensively studied. Our country is blessed with substantial surface water resources (mostly from rivers) and has among the highest level of rainfall in the world. In Malaysia, only about 10% of the available raw water from the rivers is being utilised. It is much more economical to develop these water resources than to construct desalination plants, which can cost up to 5 times more. There are also ground water resources which are yet to be fully exploited. Currently ground water forms only 1.4% of the total raw water abstraction.
Unless all other water resources have been exhausted, desalination plants will not be considered. The most critical factor is insufficient potable/treated water supply in the near future. A major contributing factor is our high NRW, currently at 37% at national level. This means that out of every litre of water produced/treated, 37% literally goes down the drain mostly through pipe leakages. Reducing the NRW would reduce water losses, which ultimately would provide more water to consumers.
How would you describe the quality of treated water in Malaysia compared to that in other Asian countries? Tabitha CC Boi, Penang
The quality of treated water in Malaysia complies with MOH's “National Standard for Drinking Water Quality, January 2004” and in line with the standards of WHO worldwide, including for Asian countries. Pengurusan Aset Air Bhd (PAAB) strives to exceed the minimum standards especially in developing new water treatment plants. For example, MOH specifies that the turbidity of the treated water shall not exceed nephelometric turbidity units (NTU) of 5 but we design our plants to produce water with NTU of 1 or lower, generally similar to treated water in some advanced countries in Asia and Europe.
To ensure compliance to safe water standards, MOH conducts regular testing on samples at various random locations. The Chemistry Department also conducts testing for other parameters not covered by MOH. Every water treatment operator is required to conduct their own tests at their plant at least once every 2 hours. But this alone is not enough to ensure the quality of treated water. There are other factors to consider especially the quality of the distribution as well as internal reticulation or piping system.
What law would you change, if you could, so that consumers nationwide can enjoy clean water at fair rates? Bulbir Singh, Seremban
To achieve long-term sustainability of water supply, it is critical for the management and funding of water supply to be better organised and regulated, hence the establishment of the National Water Services Commission (Span) and PAAB. Of course, there may be many teething problems which could be further improved on. The Water Services Industry Act (WSIA) has only been recently introduced and we are in the first operating period. Rather than looking at amending or introducing new laws, let us focus on implementing the Act progressively and perhaps, fine tune any gaps or weaknesses along the way.
What has PAAB done for the rakyat since the unit's inception? Eugenie Devan, Bangsar, KL
PAAB's main objectives are to develop water assets and assist in the restructuring of the water services industry. We have made positive progress in the development of water assets in our migrated states for which we have allocated over RM1bil in capital expenditure for 2010 up to April 2011. A large part of the allocation is to rehabilitate pipes and connections to reduce NRW in the respective states. This will effectively reduce the incidences of pipe burst which will directly impact the stability of water supply to consumers. There is also the development of the 105 million litres/day Water Treatment Plant in Sg Labu, Selangor to ensure the security of water supply to the KL International Airport and its vicinity. The first phase was completed in June while full completion is targeted in December this year.
Would you say PAAB is “still on track” in its target to complete the consolidation of the entire water sector in the country? Ng Wei Loon, Taman Desa, KL
We are very much on track. When I took on this responsibility, I fully realised that to change something of such importance and which has been state-controlled for many decades is not going to be a leisurely stroll in the park.
Five states have fully migrated while we are in the final stages of negotiation with several other states and are optimistic of concluding these discussions in the near future. The water industry has been very fragmented and there are many issues to consider.
Since taking over from the previous CEO, what has been your greatest achievement at PAAB? Ginger Leong, Cheras
There have been several significant milestones since PAAB's inception in 2007. As the CEO, my task is to continue with the efforts already in place and to develop new methods, plans and strategies towards the fulfilment of the national water restructuring policy. To this end, every step in this process is an achievement. During my tenure, PAAB not only completed the migration of the states of Perlis and Penang, but also commenced operational development of water infrastructure in the migrated states.
We have also managed to secure sukuk bond programs totalling RM40bil in 2009 and 2010. Thus far, we have issued about RM3bil at the most competitive rates in the capital market. This is a key achievement as without competitive funding, we will not be able to perform our ultimate role as the main developer of national water assets. Personally, our recent success in concluding the water restructuring deal with Penang was especially significant as it highlighted the importance of federalstate cooperation and signified that, when it comes to ensuring the sustainability of water supply, the people's interest precedes everything else.
Different water consession operators charge different water tariff rates. Will there be uniform rates in most states one day? TL Ong, Segamat, Johor
Until the level of basic water infrastructure and service standards reach a common level for all, if not most, states in Malaysia, uniformity of rates cannot be effectively implemented. It is much more challenging for a bigger nation to achieve the required level of infrastructure within a short period due to vast differences in geographical areas and terrain, capital and operational costs and the quality of raw water from rivers or catchment areas. Since independence, water infrastructure has been developed by the respective states, which in turn have different financial abilities or funding priorities. Addressing the imbalance (in infrastructure) requires huge capital expenditure and translates into higher costs which will eventually have to be compensated through tariff increases.
To ensure that consumers are not burdened with drastic tariff hikes, PAAB is looking at a more balanced capital development in the migrated states Johor, Malacca, Negeri Sembilan, Perlis and Penang. To reach a level where every state has similar quality and capacity of infrastructure may take more than a couple of decades, at least.
What interests you about the water sector? Norwahid, Petaling Jaya
The fluidity of the water sector and the many challenges it presents are one of the main factors behind my interest in the water industry. Inexpensive water rates as well as an abundant supply in our country has resulted in people taking water for granted. National consumption of about 220 litre per capita/day (lcd) is among the highest in the world (as a comparison, Singapore 156 lcd, Hong Kong 187 lcd). Our relatively low tariff and lackadaisical attitude towards water conservation play a big role in this. I am constantly being updated on new and exciting developments especially in the area of water treatment. It is a steep learning curve indeed, but one that is fulfilling and challenging.
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