22 Jul. 2010 Global predominance of uniform linear water tariff over increasing block
tariff structure.
About 65 percent of domestic water utilities have employed increasing
block tariffs (IBTs), chiefly for the purpose of discouraging extravagant
industrial use to meet the evergrowing water demand and to avoid the subsequent
supply shortage, which could fully be justified in the era of high-speed
ecomonic growth from 1950s to 1970s. Recent report prepared by Japan
Water Works Association (JWWA) special committee emphasized the appropriateness
of uniform linear tariffs and proposed to relieve at least the progressiveness
of existing IBTs under changed socioeconomic conditions. A brief survey
of water tariffs of selected 35 municipalities worldwide showed the popularity
of the uniform linear tariffs especially in industrialized countries, though
with the exception of some Latin Europe cities like Venice, Madrid, Athens
and Lisbon.
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21 Jun. 2010 The Italian water sector integration enforced by the Galli Law: a brief survey.
Water supply services in Italy once managed by more than 10,000 municipal
operators have been integrated both vertically and territorially into 91
ATOs (Ambiti Territoriali Ottimali: Optimal territorial Area) by the 1994 Galli Law; water supply and wastewater
services have been vertically integrated and 20 regione authorities have
territorially defined each ATO considering hydrographical sub-basin units.
68 of all 91 ATOs do undertake their missions in 2009 by setting up concession
agreements with public, mixed or private operators under full cost-recovery
principle. A national policy package of both legal and financial is suggested
to be essential from the Italian experience as a driving force to integrate
over 2,200 domestic water supply utilities owned and managed by municipalities.
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20 Apr. 2009 Schemes of charges for water supply and sewerage services in France.
The household charges for water supply and wastewater services in twenty
one capitals of régions in France are surveyed and compared with those
of four major cities in Japan. The level of monthly bills for metered 10
cubic ms ranges from €23 to €36 in France, of which Clermont-Ferrand
has the lowest. The City of Osaka has the lowest bill at €12 among
the four cities, while the City of Sakai has the highest at €19,
which is even cheaper than that of Clermont-Ferrand, though taking no account
of difference of subsidies.
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8 Apr. 2009 Schemes of charges for water supply and sewerage services in England and
Wales.
The household charges for 2009-10 set forth by the ten water and sewerage
companies in England and Wales are surveyed and compared with those set
up by four large cities in Japan: Tokyo megalopolis, the City of Osaka,
the City of Fukuoka and the City of Sakai. The level of monthly bills for
metered 20 cubic ms ranges from £37 to £94 in the UK, of which Thames Water
has the lowest and South West Water has the highest. The City of Osaka
has the lowest bill at £22 among the four cities, while the City of Sakai
has the highest at £37 which just corresponds to that of Thames Water,
without taking into account any differences of subsidies.
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24 Feb. 2009 Sewerage service Pro-privatization Indicator (SPI) as of the end of JFY
2006 to assess the necessity and profitability of privatizing wastewater
services.
Sewerage service Pro-privatization Indicator (SPI) is a set of indicators
designed for both wastewater utilities' managerial personnel and private
sector participants. Comprising six independent indicators calculated for
all domestic wastewater utilities reflecting their over-debtedness, subsidiary
tax money received, aging inhabitants and served population density, it
provides a graded score to assess the urgent necessity of privatization
or any other strategic reform like inter-communal cooperation for the part
of public sector, as well as the profitability of once privatized operations
for the part of private sector. This SPI as of the end of JFY2006 is proposed.
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5 Jan. 2009 Re-municipalization of water supply service in Paris.
Paris Mayor Bertrand Delanoë surprisingly announced in June 2008 to re-municipalize
water supply service in Paris, comprising the establishment of EPIC (Établissement
public industriel et commercial) as an entrustee to own, operate and manage
all the components of water asset in Paris, in place of present three concession
or affermage holders: Eau de Paris, CEP (Compagnie des Eaux de Paris) and
EF-PE (Eau et Force- Parisienne des Eaux). Related papers and articles
are surveyed, featuring in particular its phased reforming process.
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9 Dec. 2008 Mutual ownership of water and sewerage assets - Glas Cymru's case.
Welsh Water (Dwr Cymru Cyfyngedig) is managed by NPO-like holding company
Glas Cymru Cyfyngedig for the benefit of its customers after the takeover
battle of Hyder in the late 1990s, as featured in NHK's TV documentary
program titled Water Crisis. Customers' mutual ownership of water and sewerage assets must be an effective
means for any privatized public utilities to prevent takeover by any third
party, but it might be worth due consideration whether a separation of
asset ownership from operations improves the level of service and brings
necessary investment. Glas Cymru's "company limited by guarantee"
cadre may be excellent to safeguard customers from takeover turmoil but
remains to be a special case. Related papers and articles are surveyed,
including proposed establishment of RCAM (Registered Community Asset Mutual)
to own Yorkshire Water Services Limited's assets.
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4 Nov. 2008 Multifunctional approach towards sewer networks - a continued discussion by the staffs.
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15 Oct. 2008 Terminated concession agreement of water-supply service in the City of Atlanta - supposed cause of the trouble.
Operation and maintenance agreement of water system was made between
the City of Atlanta (the City) and United Water Services (UWS) in December
1998, which comprised almost all components of the water supply service
formerly performed by the City but was terminated on UWS's default in January
2003. The supposed cause of this default is summarized as follows; (a)
the City's failure of providing exact data; (b) proposed too low bid by
UWS; (c) required reemployment of the City's personnel; (d) lack of the
City's appropriate step-in.
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10 Oct. 2008 Multifunctional approach towards sewer networks - a preliminary discussion by the staffs.
The acquisition cost of water and wastewater asset less accumulated depreciation
amounts to as much as 100 trillion yen (0.8 trillion euro) in Japan, of
which around seventy percent are of sewers and water mains. Estimated long-term
decreasing trend of both domestic population and water consumption will
bring a poorer return from the asset as well as a notable decline of the
operational efficiency. Multifunctional approach if any of underground
asset other than liquid transportation is discussed, including raising
treatment potential by enhancing microbial and chemical process in sewer
networks.
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5 Aug. 2008 NHS Local Improvement Finance Trust (LIFT) as a suggested framework to improve and reorganize community-based water services in Japan (continued).
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14 Jul. 2008 Explanatory notes on fiscal situation and other educational resources about sewerage services on local authorities' websites in Japan.
Seweraged population in Japan is over 70 percent of all nation's inhabitants,
after a series of intensive and even rigorous capital investment in the
1990s, triggered by Structural Impediments Initiative prepared by U.S.-Japan joint working group in July 1990. Most local authorities
are now in consequence suffering heavy burden of debt depreciation, of
which fact is scarcely recognized by customers. Disclosure of comprehensive
financial information on sewerage service is thus much needed to arouse
public concern and attention through websites or any printed media. Websites
on sewerage services offered by 754 cities are checked and reviewed in
this respect featuring fiscal contents.
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7 Jul. 2008 NHS Local Improvement Finance Trust (LIFT) as a suggested framework to improve and reorganize community-based water services in Japan.
NHS LIFT (National Health Service Local Investment Finance Trust) is
a the UK's new approach to improve community-based health care service
bringing together a number of regional communities under one umbrella.
It grants exclusivity to a special purpose company called LIFTco under
BOT (build, operate and transfer) and lease-back scheme for less than 25
years, while communities participate in the LIFT project under a strategic partnering agreement. Related papers and articles are surveyed expecting to find a prototype
for improving the water services in Japan.
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10 Jun. 2008 How to build a concrete partnership in PPP projects; Omihachiman city hospital BOT project as a case study.
Agreement was reached in 25th December 2008 after 10 months of negotiation
to terminate the PFI agreement of Omihachiman city hospital BOT project
(Shiga pref.), which was provoked voluntarily by the city. The city professionals
provide health care service whereas the PFI contractor is expected to provide
serviced accommodation suitable for use by the city professionals. Failure
of building concrete partnership between both parties seems to cause the
trouble, which might occur in most of the PPP attempt of water and sewerage
services because the municipality is to retain both the ownership of the
asset and the responsibility as a service provider. A suggestion is proposed
to improve the relationship, comprising of designing tree-like communication
matrix among the stakeholders with some flexibility allowed.
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4 Jun. 2008 New legal framework for water services in Malaysia; the establishment of PAAB (water asset management company) as a Government agency.
Malaysian government has launched a new legal framework for both water
supply and wastewater services comprising the Water Services Industry Bill 2006 and the National Water Services Commission Bill 2006. Water assets owned by the states are to be transferred to PAAB (Pengurusan Aset Air Berhad), a water asset management company established in May 2006 and a 100 percent
subsidiary company of Minister of Finance Incorporated set up to relieve
the financial burden of the states. State water entities are required to
be corporatized to ensure higher level of service and operational efficiency
as individual licencees of water treatment and distribution. Existing water concession holders
on the other hand are to be permitted to continue their operations until
expiries of concession period, though renegotiations are recommended to
become individual licencees modifying contractual terms and conditions. This ongoing reform is reviewed,
featuring in particular water supply services.
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28 May 2008 New legal framework for water services in Malaysia; nationalized wastewater services.
Malaysian government has launched a new legal framework for both water
supply and wastewater services comprising Water Services Industry Bill 2006 and National Water Services Commission Bill 2006. Wastewater services except Malaysian Borneo had been provided prior to this legislation by a national sewerage company called IWK (Indah Water Konsortium), a subsidiary company wholly owned from June 2000 on by Minister of Finance Incorporated. IWK is to be a licencee under the Water Services Industry Bill 2006 of both the owner of the sewerage
assets and the service provider, as well as is to be regulated by SPAN
(Suruhanjaya Perkhidmatan Air Negara), an Ofwat-like regulating authority established by the National Water
Services Commission Bill 2006. This ongoing reform is reviewed, featuring
in particular sewerage services.
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18 Feb. 2008 Sewerage service Pro-privatization Indicator (SPI) proposed as a tool to assess the necessity and profitability of privatizing wastewater services.
Sewerage service Pro-privatization Indicator (SPI) is a set of indicators
designed for both wastewater utilities' managerial personnel and private
sector participants. Comprising six independent indicators calculated for
all domestic wastewater utilities reflecting their over-debtedness, subsidiary
tax money received, aging or decreasing inhabitants and served population
density, it provides a graded score to assess the urgent necessity of privatization
or any other strategic reform like inter-communal cooperation for the part
of public sector, as well as the profitability of once privatized operations
for the part of private sector. This SPI as of the end of JFY2005 is proposed.
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7 Jan. 2008 Being privatized municipal gas supply services as a prototype of privatizing Japanese water services.
About one half of the municipal gas supply services in Japan have been
privatized in recent years to avoid burdensome capital investment to use
natural gas instead of traditional liquefied petroleum gas, which was promoted
by Government's strategic plan Integrated Gas Family 21 issued in 1990 to ensure all gas suppliers use natural gas until 2010.
Transferring process and bid prices are surveyed as a possible prototype
of privatizing water supply service.
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25 Dec. 2007 Privatization of wastewater services in France; gérance, régie intéressée, concession and affermage.
Sewerage assets in France are owned by local authorities but are operated
by various entities including concession and affermage agreement holders.
According to published sources 75 percent of local authorities have established
intercommunity agencies to govern sewerage services, whereas private sector
entities under affermage agreement operate sewerage assets owned by less
than 30 percent of local authorities. Related articles are surveyed as
well as websites on sewerage services offered by 22 regions' capital cities
are reviewed featuring fiscal contents and educational resources.
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3 Dec. 2007 Feasibility and benefit of carbon finance in water, sewage and waste treatment - a continued discussion by the staffs.
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29 Nov. 2007 A glance at websites of wastewater service authorities in the United States.
Not a few websites provided by wastewater service authorities in the
United States are not only informative but even unique; DC Water and Sewer
Authority provides comprehensive financial information including bond ratings
and historical bond issuance as well as rich educational resources; Kids' Staff corner offered by the City of San Diego Metropolitan Wastewater Department
provides recipes for making food that looks like sewage. Over 140 websites
of wastewater service authorities in the United States are reviewed from
financial, technical and educational aspects.
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27 Aug. 2007 Feasibility and benefit of carbon finance in water, sewage and waste treatment - a preliminary discussion by the staffs.
Greenhouse gas emission reduction and subsequent carbon finance (i.e.
carbon credit trading) may be an umbrella bringing together various stakeholders
concerning water, sewage and waste treatment to enhance inter-communal
and trans-sectional cooperation. Basic framework of carbon emission trading,
Clean Development Mechanism and Joint Implementation is surveyed to discuss
the feasibility and the benefit of carbon finance in water, sewage and
waste treatment field.
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27 Aug. 2007 Is it urgently required to replace asbestos cement pipes to keep safe our drinking water?
Asbestos cement pipes (ACPs) in Japanese water supply systems have been
gradually replaced, backed up by Government's subsidiary scheme. The percentage
of remaining ACPs is as small as 2.1 percent (13 thousand kilometers) of
whole nation's water pipelines in the end of JFY2006, but over fifty municipalities
still use ACPs of more than twenty percent of their water distribution
systems. Detected field data and papers concerning health effects of asbestos
are surveyed including documents prepared by WHO, U.S.EPA and MHLW (Ministry of Health, Labor and Welfare).
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17 Apr. 2007 Rebalanced water charges in merged municipalities.
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13 Apr. 2007 Outsourced water service: the case of Takayama City.
The City of Takayama has nominated a private sector entrustee (called an entrusted manager) in 2006 to operate its water facilities for three years based on the amended Local Autonomy Law in 2003, which was the first practice in the field of water supply service. An interview was conducted with the managing personnel of the City's water supply service, featuring the advantage and the process of the nomination.
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9 Mar. 2007 Rebalanced wastewater charges in merged municipalities.
Government-led local administrative reform in recent ten years has notably
reduced the number of municipalities from around 3,200 to less than 1,800.
Rebalancing individual wastewater charges in a merged municipality is not
an easy task; of proposing a new consolidated charge scheme to municipal
assembly after hosting a series of citizen advisory committee based on
a developed plan comprising the assessment of future water use, capital
investment, O&M management, financing and debt depreciation. Rebalanced
wastewater charges in merged municipalities as well as the expected schedule
for rebalancing are reviewed.
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26 Oct. 2006
Introduction of GAAP (Generally Accepted Accounting Principles) to local public enterprises offering sewerage service in Japan - its
benefits and disadvantages summarized.
Ninety percent of over 2,000 local public utilities managing sewerage
services in Japan prepare their budgets and settle their annual accounts
on cash-flow basis without BS and P&L: a traditional accounting format
adopted by both national and local government. Subsequent lack of assets'
information is becoming an obstacle to achieve proper asset management
and moreover to disclose financial status. To introduce GAAP (Generally Accepted Accounting Principles) is thus strongly recommended by the Government, but over one or two years
of additional work and necessary accounting skill to prepare BS and P&L,
as well as the fact that it is not obligatory on the Local Public Enterprise
Law, might be the cause of their reluctance. A series of interviews to
the staffs of local authorities were performed to evaluate the benefits
and disadvantages by introducing GAAP.
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31 Jul. 2006 Outsourced bill collection and accounting work: the case of the Town of
Oigawa.
The Town of Oigawa, now a part of the enlarged City of Yaizu after merger
in 2008, and NJS E&M, an engineering subsidiary of NJS, signed a five-year
contract in April 2005. This agreement covered the contracting out of meter
reading, bill collection and accounting assistant work necessary for water
supply service, including the lease of hardware and software for charge-billing
and accounting. Interviews were conducted with the managing personnel of
the Town's water supply service as well as with the staffs of NJS E&M,
featuring the advantage of outsourcing and the process to establish a good
communication and partnership of both parties.
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12 Jun. 2006 What is the bottleneck to privatize publicly-owned water supply and sewerage services - a discussion by the staffs.
Almost all of the water supply and sewerage services in Japan are owned
and governed by municipalities. Water supply services could be provided
by private sector if licensed by the Government as well as could be almost
wholly outsourced in technical aspects, while sewerage services are/may
be outsourced under O&M, DBO or BTO agreement. The present status of
privatization however might be said to be bottlenecked or even blocked
by thick wall. Is privatization REALLY the best and only way to improve
the quality of the services for cheaper price? Vested interests for the
part of municipalities prevent the benefits of competition? Means to achieve
fruitful public private partnership is discussed.
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17 Feb. 2006 Law on Market Testing billed to the Diet; Can this be a tool to improve publicly-governed water supply and sewerage services in Japan - a discussion by the staffs.
The Law on Market Testing was billed to the Diet on 10th February 2006
after a series of intensive studies conducted by the Council for the Promotion
of Regulatory Reform under the regime of Prime Minister Koizumi. Though
neither water supply nor sewerage services are included in the model projects category, the principle "every public service shall be the target"
might cause these services to be market-tested and even privatized based
on any approved applications from municipalities or private sector, of
which perspective and supposed bottleneck if any is discussed.
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