Malaysia Preparatory Survey on Creation of the Best Optimized Water Infrastructure Ppp in Major Urban Areas

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Malaysia Preparatory Survey on Creation of the Best Optimized Water Infrastructure Ppp in Major Urban Areas No. MALAYSIA Ministry of Energy, Green Technology and Water (Kementerian Tenaga, Teknologi Hijau dan Air) MALAYSIA PREPARATORY SURVEY ON CREATION OF THE BEST OPTIMIZED WATER INFRASTRUCTURE PPP IN MAJOR URBAN AREAS FINAL REPORT JUNE 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) SUMITOMO CORPORATION TOKYO SUIDO SERVICES CO., LTD. TOKYO METROPOLITAN SEWERAGE SERVICE CORPORATION NJS CONSULTANTS CO., LTD. OPS JR 12-024 Malaysia Preparatory Survey on Creation of the Best Optimized Water Infrastructure PPP in Major Urban Areas Final Report Temerloh for Water Supply Cheras & Kajang for Sewerage Prepared by the Study Team using Map of Malaysia published by the Ministry of Tourism Location Map of Study Areas Malaysia Preparatory Survey on Creation of the Best Optimized Water Infrastructure PPP in Major Urban Areas Final Report TABLE OF CONTENTS LOCATION MAP OF STUDY AREAS TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY PART I: GENERAL 1 Socio-economic Conditions in Malaysia ............................................................................... I-1 1.1 General Information and Population ....................................................................................... I-1 1.2 Economic Condition ............................................................................................................... I-2 1.3 Social Condition ..................................................................................................................... I-2 2 Situation and Issues in Water Services Industry Sector ...................................................... I-5 2.1 The Water Services Industry Prior to WSIA 2006 .................................................................... I-5 2.2 The Water Services Industry after WSIA 2006 ........................................................................ I-6 2.3 Organizations Involved in Water Services Industry ................................................................. I-8 2.4 Situation and Problems in Water Services Industry................................................................ I-12 3 Basic Policy and Political Issues of the Malaysian Government for Water Services Industry.............................................................................................................................. I-20 3.1 Positioning in Water Supply and Sewerage Development Plans in 9-MP and Prospects in 10-MP .............................................................................................................................. I-20 3.2 Mid-term Development Goals (Target in Water Treatment and Sewage Treatment and Regional Targets) ........................................................................................................... I-23 3.3 Basic Policy for Water Supply and Sewerage Development ................................................... I-25 3.4 Policy for Promotion of Water Supply and Sewerage Development Using the Loan Assistance from Other Countries and PPP Approach ............................................................. I-26 3.5 Basic Policy for OPEX of Water and Sewerage Operators ..................................................... I-27 3.6 Concrete Plan, Policy, etc. Formulated by KeTTHA Based on the Above .............................. I-28 4 Situation of PPP-related Legislation in Malaysia .............................................................. I-30 PART II: WATER SUPPLY 1 Water Supply Services in the State of Pahang ........................................................................ II-1 1.1 Historical Background ................................................................................................................ II-1 1.2 Organization ................................................................................................................................ II-1 1.3 Financial Conditions ................................................................................................................... II-5 1.4 Water Supply Services .............................................................................................................. II-12 1.5 Call Centre ................................................................................................................................ II-19 1.6 Proposed Managerial Improvement .......................................................................................... II-20 2 Situation of Study Area: Temerloh District .......................................................................... II-24 2.1 Natural Conditions .................................................................................................................... II-24 2.2 Socio-economic Conditions ...................................................................................................... II-26 2.3 Existing Water Supply Facilities ............................................................................................... II-29 2.4 Water Quality Management ...................................................................................................... II-41 2.5 Non-Revenue Water .................................................................................................................. II-43 2.6 Proposed Technical Improvement ............................................................................................. II-49 3 Plan on NRW Reduction ........................................................................................................ II-57 (i) Malaysia Preparatory Survey on Creation of the Best Optimized Water Infrastructure PPP in Major Urban Areas Final Report 3.1 Basic Plan ................................................................................................................................. II-57 3.2 Basic Design ............................................................................................................................. II-60 3.3 Implementation Plan ................................................................................................................. II-62 3.4 Feasibility .................................................................................................................................. II-66 3.5 Environmental and Social Consideration .................................................................................. II-73 PART III: SEWERAGE 1 Outline of Study Area ......................................................................................................... III-1 1.1 Natural Condition ................................................................................................................ III -1 1.2 Social condition .................................................................................................................. III -1 2 Situation of Sewerage Development, and Operation and Maintenance in the Study Area ............................................................................................................... III -4 2.1 Situation of Sewerage Development in the Study Area ......................................................... III -4 2.2 Situation of Operation and Maintenance of Existing Sewerage Facilities ............................ III -4 2.2.1 Sewerage System ...................................................................................................... III-5 2.2.2 Sewer System ........................................................................................................... III-5 2.2.3 Sewage Treatment Facilities ...................................................................................... III-6 2.2.4 Sludge Treatment Facilities ....................................................................................... III-8 2.2.5 Operation and Maintenance System of IWK .............................................................. III-8 2.2.6 Situation of Existing STPs in the Study Area ............................................................. III-9 2.3 Outline of IWK as A Sewerage Services Provider ........................................................... III -12 2.3.1 Organization of IWK .............................................................................................. III-13 2.3.2 Financial Status of IWK .......................................................................................... III-13 2.3.3 Sewerage Tariff, Billing and Collection ................................................................... III-15 2.3.4 Current Performance of IWK in Selangor ................................................................ III-17 3 Existing Study Reports and Projects in the Study Area ................................................. III -21 3.1 Sewerage Catchment Strategy Report ............................................................................... III -21 3.2 Kajang 2 CSTP Construction Project ............................................................................... III -22 4 Situation of Water Quality Environment in the Study Area ......................................... III -24 4.1 Situation of Water Use in the Upper Langat River Basin ..................................................... III-24 4.2 Water Quality Fluctuation in the Flowing Direction of the Langat River .............................. III-26 4.3 Water Quality Fluctuation at the Monitoring Station of 1L05 of the Langat River ................ III-27 5 Facility Strategy .............................................................................................................. III-29
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