water operators' partnerships in asia

8/12/2019 Water Operators' Partnerships in Asia

1/24

Indah Water Konsortium

Kuala Lumpur, Malaysia

PDAM Tirtanadi

Medan, Indonesia

Water OperatorsPartnerships in AsiaCase Study II


2/24

Published in Marseille, March 2012

Copyright United Nations HumanSettlements Programme (UN-HABITAT) 2012

All rights reserved

United Nations Human Settlements Programme(UN-Habitat)P.O. Box 30030 00100 Nairobi GPO KENYA

Tel: 254.020.7623120 (Central Office)

www.unhabitat.org

HS/015/12E

Disclaimer

The designations employed and thepresentation of material in this publicationdo not imply the expression of any opinionwhatsoever on the part of the secretariat ofthe United Nations concerning the legal statusof any county, territory, city or area or itsauthorities, or concerning the delimitation of itsfrontiers or boundaries regarding its economicsystem or degree of development. Excerptsmay be reproduced without authorization, oncondition that the source is indicated. Viewsexpressed in this publication do not necessarilyreflect those of the United Nations Human

Settlements Programme, the United Nationsand its member states.

Acknowledgements

Principal author: Cesar E. Yiguez,Digby Davies

Contributors: Nancy Barnes, Arthur McIntosh,David Milnes, Darren Saywell, SiemenVeenstra and Julie Perkins

Editor: Roman Rollnick

Design and layout:Jared Farrell andAnke van Lenteren www.designi.eu

Photos: pages 5, 6, 10, 11, 14 and 20 (right) Cesar E. YiguezAll other photos sourced from Shutterstock

Printer: France Document, Marseille

Water Operators Partnerships in AsiaCase Study II:PDAM Tirtanadi and Indah Water Konsortium


3/24

1

IntroductionA water operators partnership (WOP) is any kindof association between water or sanitation operators

conducted on a non-profit basis with the aim of developingcapacity. These partnerships are being promoted as a wayof helping the worlds public water and sanitation operatorsto sustainably deliver adequate water and sanitation for all.

This report presents three interesting Case Studies onwater operators partnerships in Asia. The aim is toprovide readable and accessible reports on WOPs inpractice how they work, and what kind of difference theymake. The authors have looked at how the partnerships

were set up, implemented and monitored; the changes andimprovements they brought about in the partner utilities;and their impact both achieved and anticipated onservice delivery, future investment, and replication.

These studies were conducted for the Global WaterOperators Partnerships Alliance (GWOPA), hosted byUN-HABITAT, under our obligation as the United Nationscity agency to help the world meet the water and sanitationtarget of the Millennium Development Goals.

As part of our World Urban Campaign for better cities, weconsider the partners doing this excellent and vital work ascity changers making a real difference on the ground formany, many households and in many countries.

It also forms part of our remit to share and promoteknowledge and understanding of water operatorpartnerships. Together with GWOPAs growing onlinedatabase of WOP profiles, the case studies help fillthe huge knowledge gap around this important andhigh-potential practice. They aim to shed light on how thepartnerships are currently carried out, what works, whatdoesnt, and how they can be improved for greater impactand wider adoption.

Indeed, the WOPs (including what some refer to as public-public partnerships) are being implemented by a growingnumber of organizations around the world, and they varygreatly in their scope, form and content.

Those presented here are not meant to be taken asprototypes or best practices, but as a sampling of thediversity of not-for-profit partnerships possible between

water and sanitation operators.

It is our fervent hope that the excellent partnershipspresented here will inspire more operators to take upthe practice, learn some lessons, and also help financialsupporters and facilitators build more effective partnerships.

AcknowledgementsThe main author, Cesar E. Yiguez, and the supportingconsultant, Digby Davies, could not have produced thestudy without the goodwill, help and cooperation of manypeople and they wish to express their gratitude to all ofthem. They include Ms. Lim Pek Boon, Shahrul NizamSulaiman, Ir. Mohd Adnan Md Dom, Ir. Sohaimi Kling(Indah Water Konsortium, Malaysia); Ir. H. Delviyandri,Lokot Parlindungan Siregar, Heri Batangari Nasution,

Khairudi Hazfin Siregar (PDAM Tirtanadi, Medan), andArie Istandar and Mohamad Yagi (USAID ECO-Asia).

Special thanks are also due to Advisory Panel membersNancy Barnes, Arthur McIntosh, David Milnes, DarrenSaywell and Siemen Veenstra for their valuable expertinputs and comments on drafts. Jared Farrell and

Anke van Lenteren are to be thanked for their collaborationand creative design.

Faraj El-Awar, PhD

Programme ManagerGlobal Water Operators Partnerships AllianceUN-Habitat, Nairobi, Kenya


4/242

Key facts

Indah Water Konsortium Kuala Lumpur, MalaysiaPDAM Tirtanadi Medan, Indonesia

USAID through ECO-Asia Waterlinks

USD 32,000

To increase the number of households connectingto Medans city sewerage system

Sanitation promotion using USAID 10-StepPromotion Program Toolkit, staff training

Partners

Facilitator

Approx. cost

Aim

Approach


5/243

Key facts

Eight months

More than 4,000 new connections as a resultof water operators partnership

Capacity raised in PDAM Tirtanadi to improve sanitationstrategy and management on behalf of the community

Continuation of partnership, IWK engaging in further WOPs inAsia; PDAM Tirtanadi has adopted new practices; toolkit has been

adapted for use in other Asian countries (Philippines, Vietnam)

Duration

Results

Long-term outlook

Success indicators


6/244

The background

Medan, capital North Sumatra Province, isIndonesias fourth largest city after Jakarta,Surabaya and Bandung. The population ofGreater Medan is 4.14 million.

Medans central city wastewater system was builtunder two successive Asian Development Bankprojects, beginning in 1984. Developed in three

phases, the system serves 572,700 people. Butby October 2008, the total number of householdconnections was still under 11,500, serving only57,500 people. The Cemara Sewage TreatmentPlant was then using only 27 per cent of its designcapacity of 60,000 cubic metres per day. Despiterecognition by politicians, local officials andcommunity leaders of the need for better sanitationservices, residents remained slow to connect to the

wastewater system.To increase coverage, the City Government ofMedan decided to develop a new city-widesanitation strategy. Helped by the USAIDEnvironmental Services Program and the AsianDevelopment Bank funded Metropolitan SanitationManagement and Health Project, Medan City setout sanitation priorities, including plans to improve

Medans wastewater system.The City was able to finance the plan with AsianDevelopment Bank funds earmarked by the CentralGovernment for wastewater system improvementsin ten Indonesian cities, including Medan. In 2008,the Indonesian Ministry of Public Works set asideIDR 5.0 billion (USD 600,000) to help Medanincrease wastewater collection coverage. The City

Government of Medans sanitation working group,POKJA Sanitasi, took responsibility for gettingpeople to connect to the network. The Ministry

promised further funds for Medans wastewatersystem if the city could demonstrate increases in

wastewater service coverage.

USAID promotes and facilitates water operatorspartnerships in Asia through WaterLinks, aplatform it runs in collaboration with the AsianDevelopment Bank and the International Water

Association to enable the transfer of best practices,

expertise and technology through not-for-profitpeer exchanges.

As far back as 2005, USAID had sponsoredtechnical assistance visits by Medan officialsto Indah Water Konsortium Sdn Bhd (IWK) inMalaysia. In 2008, USAID supported a wateroperators partnership agreement with IWK asmentor and PDAM Tirtanadi Provinsi Sumatera

Utara, Medans water, wastewater and sewerageservice provider, as recipient. The principalobjective of the partnership was to increaseconnections to Medans sewerage facilities bystimulating demand for sanitation services,including willingness to pay


7/24


8/24

Members of Medans Joint sanitation team,composed of PDAM and Medan CityGovernment employees.

6

The partners

PDAM Tirtanadi is a water and sanitation serviceprovider owned by the Provincial Governmentof North Sumatra in Indonesia. It was foundedin 1905 as a Dutch company, initially to provide

water supply services. In 1991 it was given themandate to include wastewater services, takingover wastewater operations from the localgovernment in 1995. The utility is responsiblefor providing water supply and wastewaterservices for Medan and nine neighbouring citiesand municipalities. Both connection fees and

wastewater tariffs are heavily subsidized by theCity of Medan1. Bill collection efficiency is highat 97 per cent with almost all sewerage servicescustomers also connected to PDAM Tirtanadis

water supply distribution network.

Indah Water Konsortium is Malaysias nationalsewerage company. It is wholly owned andpartially subsidized by the Federal Government

which took it over from an unsuccessful privateoperation in 2000. The Ministry of Finance ownsthe assets under a Malaysian legal arrangementfor holding corporate assets on behalf of thepublic. IWK operates in most states of Malaysiaand is responsible for providing sewerage servicesfor over half the country. It uses media campaignsand public outreach to increase awareness and

willingness to pay among its customers. IWK hasexcelled in developing local and regional linkagesto share best practices and has provided trainingto utility staff from many Asian countries.

1 Connection fees cost households IDR 100,000 (around 11 USD) with the City contributing an additional IDR1.2 million (155 USD). Monthly tariffs areIDR 20,000 (appx .2 USD). In total, the City of Medan subsidizes sanitation in the order of 1Billion IDR (110,000 USD) annually


9/24

7

The partners

PDAM Tirtanadi

Location

Medan, Indonesia

Population

4.14 million

Populations Served

57,500 (by sewerage)

Services

Water supply and waste water services

Service Area

Medan City and 9 surrounding cities

Ownership

Provincial Government of North SumatraEmployees

29 (in sewerage division)

Sanitation Coverage

1% of total population

Assets

1 sewage treatment plant

130 km2of sewer lines5 pumping stations

Service Connections

11,500 sewer connections

Challenges

Low waste water tariffs to cover expenses,Non-revenue water, services to low-income

households, wastewater collection and services


Location

Kuala Lumpur, Malaysia

Population

28.25 million

Populations Served

17.5 million

Services

Sewerage and septage services

Service AreaMost states of Malaysia

Ownership

National Sewerage Company of Malaysia

Sanitation Coverage

62% of total population

Assets

5750 public sewage treatment plants

13400 km2of sewer lines

668 pumping stations

Special

Known for its effective awareness campaigns forcreating sanitation demand, Model in Region


10/24

8

The partnershipagreement

IWK sent a team to Medan in August 2008 toassess its central wastewater system. The teamfound a situation very similar to that in Malaysiancities 15 years earlier, with most peopleshomes unconnected, sparse sewer networks,unregulated development, yet with existing

wastewater collection and treatment capacitieslargely unutilized.

WOP Objectives

Greater community understandingof benefits of sewerage servicesawareness and readiness toconnect to the system.

Increased capacity of the PDAMTirtanadi and Medan City

Government staff to managezoning priorities, governmentand private partnerships andscheme development.

Improved coordination withMedan City Government onenabling policies.

More sewerage customersconnected 300+ by July 2009

A joint work plan was developed to expandsanitation service coverage in Medan and inlate 2008, IWK and PDAM Tirtanadi signeda formal memorandum to start the wateroperators partnership


11/24

9

Implementingthe agreement

The water operators partnership was implementedover an eight-month period, from December2008 to July 2009. The partnership culminated

in the formal launching of the Medan SanitationPromotion Campaign on August 17th, 2009in Medan.

At the start of the partnership, PDAM put inplace a sanitation team made up of 20 staff fromPDAM Tirtanadi and 10 from five Medan CityGovernment departments. The composition of theteam supported the water operators partnershipobjective of improving coordination between theUtility and the City and helped ensure the wateroperators partnership was carried out with the fullparticipation of both partners.

Most activities were conducted during visits ofIWK staff to Medan. Members of the MedanSanitation Team also participated in a study tourto IWK and its training centre in Kuala Lumpur inFebruary 2009.

The water operators partnership wasorganized chiefly around the development andimplementation of a sanitation promotionalcampaign for Medan. IWK led the Medan teamthrough the Ten-Step Promotion Program Toolkit,developed and, at the time of the water operatorspartnership being field-tested, by USAID to helpservice providers design and carry out water,

sanitation and hygiene promotion campaigns.The ten steps provided a framework for the wateroperators partnership, and guided many ofits activities.

An important initial event in the promotionalcampaign was attended by 30 participantsto review Medans wastewater managementmaster plan, introduce the promotional toolkitand plan the proposed work. The PresidentDirector of PDAM Tirtanadi and the GeneralManager for Engineering and Planning of IWKsigned a partnership agreement, followed by a

press conference.

In addition to its support for Medans promotionalcampaign, IWK helped PDAM conduct roadsweeps to identify priority customers forconnection, and training was provided to PDAMand Medan City Staff on sewerage managementand planning, development control policies,connections to public sewers, connection types,

construction controls and registration of contractorslaying sewer.

The Medan City Government launched itssanitation promotion campaign on 17 August2009 to coincide with Indonesias independencecelebrations. The event attracted hundreds ofresidents. City workers distributed sanitationbooklets, quizzed the audience on the benefits

of a sewer connection and awarded prizes suchas educational t-shirts to enthusiastic winners.Following public outreach after the launch, 750households, representing about 3,500 residents,signed up for sewer connections


12/24

Households targeted bythe promotion campaign

10

Partnershipoutcomes

IWK recommended raising awareness amongconsumers and targeting high-income groupsfor connections as a first priority. Similarrecommendations were made for the northernand eastern parts of the city connected to theCemara Sewage Treatment Plant at an early stage.For eastern parts of the city, IWK advised PDAMTirtanadi to consider using trenchless technology

to connect these areas.

Based on findings during the road sweeps IWKsuggested a more rapid cost recovery strategy

with focus on new property connections andcommercial premises like hotels, offices andshopping complexes which would generate ahigher income for PDAM Tirtanadi than individualresidential premises.

IWK provided recommendations to help Medanimprove quality in local contractors works forsewerage pipe laying. Training for contractors wasdemonstrated at the IWK Training Centre in KualaLumpur where members of the Medan SanitationTeam observed IWK training activities in sewerlaying and construction works.

Despite the financial advantages in attracting more

commercial customers, the Medan team chose tofocus first on individual household connections.This was a social and political decision as muchas a technical one, as most of the unused sewercapacity was in areas where many houses werestill unconnected. Promotional materials weredeveloped in the local language, pre-tested andlaunched on Indonesian national day. Within fivemonths of the launch, 750 additional householdsconnected to the sewerage system, well above thetarget of 300


13/24

Grit screen and chamber at theCemara Wastewater Treatment Plant

11

Impact andnext steps

The partnership saw 750 households connectedto the sewerage system. Then, thanks to thecampaign with USAID support in 2010, another400 households were connected. In 2011,

PDAM Tirtanadi and the City of Medan reachedtheir target of 3,000 further connections. TheMedan Sanitation team worked with a local non-governmental organization with communicationsexpertise, which trained additional promotionteam members, including young Chinese peopleto work in Medans Chinese communities. Radioand print media was be used to support thepromotion campaigns.

Partly as a result of the awareness campaign andthe results achieved, local and central governmentare now more engaged in supporting seweragedevelopment. The City Government of Medanis providing increased funds to raise awarenessand demand for household connections to thesewerage system. The promotion budget wasIDR 100 million in 2010 and IDR 300 million for

2011. The Ministry of Public Works has promisedmore funds to increase coverage for Medanssewerage system.

PDAM Tirtanadi is now reviewing local guidelinesand policy on the development of its seweragesystem. It is following the IWK example ofestablishing standards and controls for localsewer laying contractors to ensure proper and

satisfactory connections for the communities.PDAM Tirtanadi is also assessing what can bedone to monitor contractors via regulation.

There is a proposal to extend the partnershipto include further technical training of PDAMTirtanadi staff at the IWK Technical TrainingCentre in Kuala Lumpur.

In 2010, USAID supported two more partnerships

with IWK, and it is now working with MayniladWater Services, Inc. to build sewerage capacityin the Philippine capital, Manila. IWK has alsoteamed up with the Vietnamese Sewerage andDrainage Company in Hai Phong to increasedemand for septic tank desludging services


14/24

12

What thePartners say

PDAM Tirtanadi

PDAM Tirtanadi gainedexperience in conductingeducational and site tours suchas those at PDAM TirtanadisCemara Sewage Treatment Planto increase awareness among the

public and government agencieson the benefits of connecting tosewerage services;

adopting best practices forplanning and developmentof sewerage services andinfrastructure; e.g. guidelines

on connections to publicsewers, sewerage planning andmanagement concepts;

adopting best practices fordevelopment control policies andguidelines to ensure that quality

sewerage assets were built forthe public; e.g. registration ofcontractors for sewer laying

works; and using the mediato attract government andpublic support for seweragedevelopment activities.


IWK learned how to use andadapt the toolkit in a newoperating environment;

enriched the skills and knowledge

of its staff and motivated themto find appropriate solutions.

It expanded expertise inextending sewerage support inthe region; enhanced its corporatesocial responsibility programmeby contributing to developingcountries outside Malaysia.

USAID ECO-Asia

Field-testing the Toolkit. The

Medan experience was used to

develop and improve the Toolkit

for application elsewhere.


15/24

13

Success factorsGood collaboration between IWK and PDAMTirtanadi was key to the successful implementationof the partnership work plan within the eight-month

project period. USAID provided the essentialfacilitation and technical inputs, especially theToolkit. The Medan Sanitation Team in itself wasan example of successful collaboration betweenlocal government (Medan City Government)and a water and wastewater service provider(PDAM Tirtanadi).

The following factors were also important:

Matching mentor and recipientIWK and PDAM Tirtanadi were well matched. IWKhad had the experience of overcoming the sameproblems that PDAM Tirtanadi getting peopleand establishments to connect to its seweragesystem. IWK had more than 15 years experiencein using media and public outreach campaignsto solve these problems. The earlier engagement

between IWK and PDAM Tirtanadi under theUSAID Environmental Services Programme gavethem a better understanding of one anothersrespective capabilities and problems, allowingthem to develop a more appropriate joint workplan and reducing start-up time.

Mentor experience andtraining resources

With its experience in using media and publicoutreach to increase customer awareness and

willingness to pay, IWK was also an experiencedmentor able to help other operator with similarproblems. IWKs Technical Training Centre nearKuala Lumpur provides training for managers,supervisors, contractors and operators, for the

wastewater sector, including the use of new

equipment and technology, and has the spaceand resources to accommodate external traineesas well.

Partner commitment

Designated senior staff from IWK and PDAMTirtanadi showed commitment to the wateroperators partnership. The Manager for CapacityDevelopment coordinated the activities forIWK while the Head of Public Relations did thecoordination for PDAM Tirtanadi. The Head and

Deputy Head of the Sewerage Unit of PDAMTirtanadi led the activities for the Medan Team.The Managing Director of PDAM Tirtanadi wasat every key meeting. IWK availed its seniormanagers to mentor the Medan team; the Managerfor Communications Department led the awarenesspromotion campaign; the Head of Engineering andEnvironmental Services led the master plan reviewand the Senior Manager of the Certification Unit

presented IWKs best practices.

Government support

The Medan City Government collaborated in theMedan Sanitation Team with active members fromPOKJA Sanitasi, its sanitation working group, infive departments housing settlement, planning,health, clean environment and public works. The

Provincial Government of North Sumatra andthe Central Government were supportive andprovided funds to help ensure that all customers

who are willing to connect can be connected tothe sewerage network.


16/24

Elevated watertank, Medan

14

Success factors

Facilitation and funding

With special thanks to USAID, its Waterlinkspartner, and the Asian Development Bank, thefunding ensured success and technical support foruse of the Toolkit.

Confidence building

The IWK and Medan Sanitation Team weresuccessful in developing a good relationship thathas extended beyond the first water operatorspartnership period.

Communications

In this water operators partnership it was agreat help that there were many terms commonto the Bahasa language as used in Malaysia andin Indonesia. This was important in developingcommunications materials and mentoring use ofthe Toolkit.

The ECO-Asia 10-Step WATSAN PromotionToolkit, while still being pre-tested, was used indeveloping the promotion campaign and provedto be the right tool for the purpose


17/24

15

Success factors

Partners contributions

Source Type of input Value

IWK

Professional time

Use of facilities

Logistics

4,821 USD

PDAM Tirtanadi

Logistics

Workshop Organization

Promotional material production

Professional time

12,600 USD

Asian Development Bank

Facilitation support

International travel

Accommodation

Training events

14,254USD

Total value of WOP 32,000 USD


18/24

16

Timeline

Preparation WOP

Spring 2008 April 2008 Aug 2008 Dec 2008 Feb 2009 March 2009


19/24

T h i s t i m e l i n e i s n o t e x h a u s t i v e , b u t h i g h l i g h t s s o m e k e y e v e n t s i n t h e W O P .

17

Timeline

WOP Post-WOP

April 2009 June 2009 July 2009 Aug 2009 Dec 2009 2010 >

S l d


20/24

18

Sample studytour schedule

Medan team study tour to IWK

Sanitation Promotion Planning and Training Phase 1

Kuala Lumpur, Malaysia, February 3-5, 2009

Objectives

The goal of this exchange program is for PDAMand POKJA in Medan and IWK to jointly:

Review the sanitation master plan for Medan,IWK to provide comments;

Review best practices derived from IWK policiesand management;

Review and conduct orientation on the 10-StepWATSAN promotion toolkit;

Prepare initial sanitation promotion planfor Medan using the 10-step WATSANpromotion toolkit;

Conduct observation tour at Taman KantanPermai to understand the public awarenessprogram of IWK;

Review and learn from IWKs operations and

maintenance issues at the Bukit Jalil TrainingCentre; and

Plan for downstream activities.

Participants

3 officials from PDAM Tirtanadi (Water Utility);2 officials from Medan POKJA (Medan CityGovernment Sanitation Working Group)

Event Format

Moderated discussions will be held in the whole

three days with lectures and case presentationdemonstrating IWKs experience. A site visit willalso be conducted to showcase IWKs facilities andoperations.

Language

Bahasa Malaysia/Indonesia

Location

IWK Headquarters and Bukit Jalil TechnicalTraining Centre, Kuala Lumpur

S l t d


21/24

19

Sample studytour schedule

Tuesday 3 February 2009

Time Activity

9.00 10.30 am Master Plan Review

10.30 10.45 am Tea break

10.45 1.00 pm (continued) Master Plan Review

1.00 2.00 pm Lunch

2.00 3.30 pmBest Practices on IWK Policies andManagement

3.30 3.45 pm Tea break

3.45 5.00 pmBest Practices on IWK Policies andManagement

5.00 pm End session day 1

Wednesday 4 February 2009

9.00 10.00 am10 Steps Promotion Toolkit Reviewand Training Workshop

Steps: 3, 4, 5, & 6


10.45 1.00 pm

(Cont.) 10 Steps Promotion ToolkitReview and Training Workshop

Steps: 3, 4, 5, & 6

1.00 2.00 pm Lunch

2.00 3.30 pm

10 Steps Promotion Toolkit Reviewand Training Workshop

Steps: 7, 8, 9, & 10


3.45 5.00 pm

(Cont.) 10 Steps Promotion ToolkitReview and Training Workshop

Steps: 7, 8, 9, & 10

5.00 pm End session day 2

Thursday 5 February 2009

9.00 10.00 am

Public Awareness Program

Observation Tour at Tmn KantanPermai


10.30 1.00 pmBukit Jalil Training Centre

Operations & Maintenance Issues

1.00 2.00 pm Lunch

2.00 3.30 pm Summary


5.00 pm End of training

Agenda

Medan


22/24

Medan

Kuala Lumpur


23/24

Abstract


24/24

Water Operators Partnerships (WOPs) are peer supportrelationships between two or more water or sanitationoperators, carried out on a not-for-profit basis in theobjective of capacity development. This is one of a series ofthree impact-oriented case studies conducted on WOPs inAsia. It is intended for water and sanitation service providers,governments, development banks, donors, WOPs facilitatorsand all who are interested in gaining a better understanding

of this solidarity-based approach to helping public operatorsimprove their capacity to sustainably deliver water andsanitation services for all.

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME

P.O. Box 30030, GPO Nairobi 00100, KenyaTel: +254-20-7623120

[email protected]

www.unhabitat.org

Global Water Operators Partnerships Alliance Secretariat

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME

P.O. Box 30030, GPO Nairobi 00100, Kenya

Tel: +254-20-7625024

[email protected]

www.gwopa.org

water operators' partnerships in asia

Documents