Corporatise state water
Andrew OngPublished: Nov 24, 2005 8:43 AM | Updated: Jan 29, 2008 10:21 AM
Energy, Water and Communications Minister Dr Lim Keng Yaik reiterated that the government is pushing for state governments to corporatise its water management services, and not privatisation.
Energy, Water and Communications Minister Dr Lim Keng Yaik reiterated that the government is pushing for state governments to corporatise its water management services, and not privatisation.
"Previous state privatisation projects (of water services) did not seem to bring about efficiency in services and affordable pricing. This has caused fear among the public," he said during a press conference in Petaling Jaya today.
Thus, the government will urge the state government of Perlis, Perak, Negeri Sembilan and Melaka to corporatise their water services.
Selangor and Johor have already privatised their water management services, while corporatisation of the services have already taken place in Penang, Kelantan and Terengganu.
Lim explained that with corporatisation, the water management companies would still be owned by the government unlike privatisation which meant that they were sold to the private sector.
With the Water Services Industry (WSI) bill and the National Water Services Commission (NWSC) bill expected to be passed in April next year, Lim hopes that water services throughout the country would be better monitored to ensure quality.
The WSI Bill seeks to regulate water supply and sewerage services, while an industry monitoring body will be established by the NWSC Bill.
EPU pushed
According to Lim, the NWSC will be able to regulate and enforce the regulations set out by the WSI. The NWSC's scope will cover the social, technical and economic aspects of water management corporations.
In addition, should any of the water services corporations start to sink, the NWSC would have the power to recommend that the ministry take over, said Lim.
According to the vernacular Oriental Daily News yesterday, Lim urged the Economic Planning Unit (EPU) in the Prime Minister's Department to expedite approvals of water corporatisation proposals sent in by state governments.
"Malacca Chief Minister (Ali Rustam) complained to me (yesterday) morning that the process of corporatisation is slow, I really can't help him; This is under the authority of the EPU, our only hope is that if they expedite the applications," said Lim.
He also reminded the state governments that the two bills would be enforced from next year, and efforts to corporatise water services therefore need to be implemented soon.
He said Selangor and Johor state governments will have the choice of opting to corporatise their services, although they will not be forced to do so.
They have up to three months once the bill is approved to make a decision, or the NWSC will draw a separate set of guidelines to monitor their private water services.
"Previous state privatisation projects (of water services) did not seem to bring about efficiency in services and affordable pricing. This has caused fear among the public," he said during a press conference in Petaling Jaya today.
Thus, the government will urge the state government of Perlis, Perak, Negeri Sembilan and Melaka to corporatise their water services.
Selangor and Johor have already privatised their water management services, while corporatisation of the services have already taken place in Penang, Kelantan and Terengganu. Lim explained that with corporatisation, the water management companies would still be owned by the government unlike privatisation which meant that they were sold to the private sector.
With the Water Services Industry (WSI) bill and the National Water Services Commission (NWSC) bill expected to be passed in April next year, Lim hopes that water services throughout the country would be better monitored to ensure quality.
The WSI Bill seeks to regulate water supply and sewerage services, while an industry monitoring body will be established by the NWSC Bill.
EPU pushed
According to Lim, the NWSC will be able to regulate and enforce the regulations set out by the WSI. The NWSC's scope will cover the social, technical and economic aspects of water management corporations.
In addition, should any of the water services corporations start to sink, the NWSC would have the power to recommend that the ministry take over, said Lim.
According to the vernacular Oriental Daily News yesterday, Lim urged the Economic Planning Unit (EPU) in the Prime Minister's Department to expedite approvals of water corporatisation proposals sent in by state governments.
"Malacca Chief Minister (Ali Rustam) complained to me (yesterday) morning that the process of corporatisation is slow, I really can't help him; This is under the authority of the EPU, our only hope is that if they expedite the applications," said Lim.
He also reminded the state governments that the two bills would be enforced from next year, and efforts to corporatise water services therefore need to be implemented soon.
He said Selangor and Johor state governments will have the choice of opting to corporatise their services, although they will not be forced to do so.
They have up to three months once the bill is approved to make a decision, or the NWSC will draw a separate set of guidelines to monitor their private water services.
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