Full Cost Recovery (Pisit)
-
Upload
adbwaterforall -
Category
Documents
-
view
226 -
download
0
Transcript of Full Cost Recovery (Pisit)
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 1/12
Convention on Water and Wastewater in South East Asia
“Sharing our water experiences, problems and solutions”Hanoi, 7-9 June, 2005
Panel 2 : Full Cost Recovery
Mr. Pisit Hongvanishkul
Director of Policy &Planning Division
PWA, Thailand
Sheraton HotelHanoi, Viet Nam
The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the
Asian Development Bank (ADB), or its Board of Directors, or the governments they represent. ADB does not guarantee
the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use.Terminology used may not necessarily be consistent with ADB official terms.
THAILAND COUNTRY PROFILE
PROVINCE 76
POPULATION 63 Millions
- Urban ~ 23 (1,129 Municipalities)
- Rural ~ 40 (74,000 Villages)
2
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 2/12
WATER SECTOR INSTITUTIONS
IN THAILAND
URBAN AREAS-MWA- PWA- MUNICIPALITIES
RURAL AREAS
PIPED
- PWA- LOCAL AUTHORITIES
NON-PIPED- LOCAL AUTHORITIES
3
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 3/12
Government Agencies Concerned With WaterSupply Sector in Thailand Agency Major Roles in Water Supply
1. Ministry of Interior 1.1 MWA………………………………….……………………………………………….………………….………..
1.2 PWA……………………………….…. ………………………………………………………....…………...……
1.3 Provincial Adm. Dept………........…… ………..……………………………………………….……………...
1.4 Local Adm. Dept………………………………………………………………………………………………......
6
2. Ministry of Prime Minister’s Office
2.1 NESDB………………………………………….………………………………………………….……………...
2.2 Budget Bureau……………………………………………..…………………………………………….………
3. Ministry of Finance3.1 State Enterprise Policy Office.…………………….……….……………………………………………....
4. Ministry of Natural Resour. & Envin.
4.1 Water Resource Dept.……………………………………………………………………..…………………...
4.2 Ground Water Resource Dept. …………………………………………...………………………………….
4.3 Nat.Res & Env Policy+Plann.Off….………………………………………………………………………….
5. Ministry of Industry5.1 Industr.Estate Authority………………………………….…………………………………………………….
PolicySetting Planning Operation
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 4/12
AREA4
MWA
MWA
AREA1
AREA2
AREA3
AREA5
PWA SERVICE AREAS
225 Waterworks73 Provinces680 Municipalities11 Mill.pop.served(86% Service Coverage)
7
0.00
0.50
1.00
1.50
2.00
1980 2004
2.124MILL.CONNS
DOMESTIC 76%
GOVERNMENT&SMALL BUSINESS
STATE ENTERPRISE&
LARGE BUSINESS
7%17%
P WA
C U S T O
M E R S
Mill.conn.
8
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 5/12
PWA
WATER DISTRIBUTION
DOMESTIC
45%33%
22%
GOVERNMENT&
SMALL BUSINESS
STATE ENTERPRISELARGE BUSINESS
9
315 350 387
421 437 414 434 474 515 550606
0
200
400
600
800
1000
1994 1996 1998 2000 2002 2004
Year 2004
Product : 827 MCM
Sale : 606 MCM
Loss : 26.63 %
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 6/12
Water Tariff Policy
12
• No national or local regulatory body(Independent regulator)
• Tariff would be considered in ad-hocbasis
• Ability-to-pay principle(domestic and non-domesticcustomers)
• Water Charge designed base on progressiverate principle
• There is cross subsidization among customer types
• In case of PWA’s tariff, Every 3-5 years,new tariff would be applied to the cabinet
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 7/12
0-10
11-20
21-30
31-50
51-8081-100
101-300
301-1000
1001-2000
2001-3000
>3000
07.75
08.50
10.75
12.75
14.0014.50
14.60
14.70
14.80
14.90
15.00
09.00
11.75
13.00
14.00
14.4014.50
14.60
14.70
14.80
14.90
15.00
10.00
13.00
16.00
19.00
21.0021.25
21.25
21.75
21.50
21.25
21.00
PWA TARIFF STRUCTURE
Range(cum/month)
PWA Water Tariff (B/cum)
1. Domestic 2.Gov &Small Busi 3.State en. & Indust.
14
Eff. since 1998
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 8/12
Water Charge 84%
Total income 8,892 MB
Data: fiscal yr. 200415
ServiceCharge 9%
Net connectionCharge 4%
Interest & Others3%
PWA INCOME STRUCTURE
personnel 20%
depreciation 28%
Water charges of Private companies
25 %
Total Cost 8,534 MB
chemical+electrical 10%
others 17%
Data: fiscal yr. 200416
PWA COST STRUCTURE
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 9/12
Proportion of Government Subsidy on PWA Capital Expenditure
17
Project Categories(5 Types of Investment Projects)
Proportion of SubsidyGov. Subsidy : PWA
Income)
1. PWA Waterworks Expansion 75% 25%
2. Transferred WWKS Expansion 100% -
3. Water Resources Development 50% 50%
4. Pipe Replacement 100% -
5. Acceleration of rural Water SupplyExtension (only pipe laying) 100% -
KEY CONSTRAINTS TO FCR IN PWA.
18
EXTERNAL :
• Unclear Policy on Water Tariff Structure
• Unclear Policy on Government Subsidy To PWA(Public Service Obligation)
• Non-Unity of Water Supply and Water ResourcesManagement/ Institutions
• Water Tariff Applied Across The Country(Politic Issue)
• No Independent Regulator
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 10/12
KEY CONSTRAINTS TO FCR IN PWA.
19
INTERNAL :
• Unflexible of Management(Due to regulations of State/ Government Sector)
• Disperse of the utilities across the countries(most of service areas of each utilities aresmall and medium )
Rank Top 5 Actions Which Were appliedin Achieving Cost Recovery
Reduction in Physical Losses
Improvement in metering
Improvement in Billing and meter reading
20
Aggressive increase in number of connections
Improvement in operational efficiency
(Reducing power, labor and chemical use)
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 11/12
IMPORTANT FACTORS LEADING TO FCR
Attitudes and professional background
of responsible personnel in the ministries and in the utilities
(there is no independent regulatory body at this moment)
Cooperation and communication among
utilities personnel, customers and the mass media.
21
Customer orientation and services
Customer (ratepayer) education program
SUGGESTION ON FUTURE SEAWUN ACTIVITIESRELATED TO FULL COST RECOVERY
PEOPLE EDUCTION PROGRAM
INFORMATION & EXPERIENCES EXCHANGE
BENCHMARK SETTING
DISCUSSION & MEETING AMONGTHE EXCUTIVES AND OPERATING STAFF
DISCUSSION & MEETING AMONG
THE TOP/SENIOR FROM THE MINISTRIES
FOLLOW-UP OR MONITORING PROGRAM
22
8/6/2019 Full Cost Recovery (Pisit)
http://slidepdf.com/reader/full/full-cost-recovery-pisit 12/12
THANK YOU….