Need to expedite restructuring to resolve water issues

Association of Water and Energy Research Malaysia (AWER) applauds the commitment of the water, land and natural resources minister to speed up the restructuring of the National Water Services Commission (SPAN).

There are many issues that need to be rectified in the water services sector.

Among them are the high rate of non-revenue water (NRW); the overlapping functions of SPAN and water agencies such as the Water Supply Department (JBA); non-regulation of Pengurusan Aset Air Berhad (PAAB); and, inconsistent water tariffs. lapping functions with PAAB, SPAN and water operators. There should not be any attempts to reduce the functions of PAAB, SPAN, Indah Water Konsortium or water operators to justify the existence of JBA and JPP.

JBA and JPP must be closed down and its workforce absorbed into SPAN, PAAB, Indah Water Konsortium or other government vacancies. Closing down redundant agencies will reduce government operational expenditure.

Just like the water services licensees, PAAB is regulated by SPAN. its water operator. Moreover, leasing period must be short-, mid- and longterm.

SPAN must also audit PAAB’s operations to determine cost to tariff via leasing fee. There should be a benchmark to ensure financial sustainability of PAAB.

To make the water services industry sustainable, IWK must be broken into statebased entities and merged with the water operators in the states. SPAN and IWK are reluctant to implement this. Further delay will increase the cost of restructuring.