Water Resources Management Financing in Malaysia

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Water Resources Management Financing in Malaysia

  1. 1. Regional Workshop on Water Resources Management Financing Report on National Workshop - MALAYSIA Yangon, Myanmar 3rd October 2013 PREVENTING FRESHWATER BANKRUPTCY 1
  2. 2. Presentation roadmap Introduction • Organisation • Main issues of WRM • Paper presentation WRM in Selangor Output from the workshop PREVENTING FRESHWATER BANKRUPTCY 2
  3. 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 3
  4. 4. Presentation roadmap Introduction • Organisation • Main issues of WRM • Paper presentation WRM in Selangor Output from the workshop PREVENTING FRESHWATER BANKRUPTCY 4
  5. 5. Introduction - Main issues on WRM Floods Water pollution Droughts • 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 5
  6. 6. Presentation roadmap Introduction • Organisation • Main issues of WRM • Paper presentation WRM in Selangor Output from the workshop PREVENTING FRESHWATER BANKRUPTCY 6
  7. 7. Introduction - Paper presentation SKM Consulting • Water resources allocation in Australia Engineers • Public-private partnership (PPP) KPMG Malaysia and developing a funding solution LUAS • Financing of WRM in Selangor PREVENTING FRESHWATER BANKRUPTCY 7
  8. 8. Presentation roadmap Introduction WRM in Selangor • Commitment of State Government • Financing of WRM Output from the workshop PREVENTING FRESHWATER BANKRUPTCY 8
  9. 9. WRM in Selangor - Commitment of State Government Addressing global warming Supports sustainable environmental management Increasing green lungs Instill the culture of environmental conservation PREVENTING FRESHWATER BANKRUPTCY 9
  10. 10. Presentation roadmap Introduction WRM in Selangor • Commitment of State Government • Financing of WRM Output from the workshop PREVENTING FRESHWATER BANKRUPTCY 10
  11. 11. WRM in Selangor Legal support • LUAS Enactment - Financing of WRM Tangible sources • • • • • • • Levy collection; Government aid; Investment gains; External sponsorship; Compensation claim; Compounds; and Miscellaneous charges. Intangible sources • Imposition of mandatory or prohibitory duty; • Inter-departmental collaboration; • Social responsibility; and • Savvy service delivery. PREVENTING FRESHWATER BANKRUPTCY 11
  12. 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 12
  13. 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 13
  14. 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 14
  15. 15. Water management functions Aspects Assessment, research and data collection Public awareness and information River basin/ catchment management Advocacy and capacity building Financing mechanisms Government funds International funds Revenues from the sale of data and related publications Government funds Private funds (CSR) International funds NGO generated funds Government funds Local government funds International funds Payment for ecosystem services (PES) Government funds Private funds (CSR) NGO generated funds PREVENTING FRESHWATER BANKRUPTCY 15
  16. 16. Water management functions Aspects Flood control & drainage Environmental and ecosystem protection Water quality and pollution control Multipurpose projects Financing mechanisms Government funds Local government funds Contributions from developers Government funds Local government funds PES Government funds Local government funds Contribution from water operators Contributions from developers PES Polluter pays principle Government funds Private funds International funds PES Polluter pays principle PREVENTING FRESHWATER BANKRUPTCY 16
  17. 17. Water user services Aspects Domestic & industrial water supply Sewerage Agriculture & livestock Navigation Financing mechanisms Water Asset Management Company (Pengurusan Aset Air Berhad) Government funds Private funds Revenues Government funds Private funds Revenues Government funds Private funds Government funds Private funds Revenues PREVENTING FRESHWATER BANKRUPTCY 17
  18. 18. Water user services Aspects Hydropower Fisheries (aquaculture) Mining Recreation, sport, tourism, etc Financing mechanisms Government funds Private funds Government funds Private funds Private funds Government funds Private funds Revenues PREVENTING FRESHWATER BANKRUPTCY 18
  19. 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 19
  20. 20. Water Management Functions Options/ Tax incentives 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 20
  21. 21. Water Management Functions Stakeholders 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 21
  22. 22. Water user services Options/incentives Recommendations Stakeholders Feed-in-tariff (hydropower) 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 Government departments and agencies Water services operators Water services and resources regulators Shipping and transport operators and regulators Water users PREVENTING FRESHWATER BANKRUPTCY 22
  23. 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 23
  24. 24. Recommendations User payments Related fees Investment funds Sources of funding Government funds Grants and aid Penalties PREVENTING FRESHWATER BANKRUPTCY 24
  25. 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 PREVENTING FRESHWATER BANKRUPTCY 25

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