Page 7 - Sibu water board Final Cover

inTroduCTion
As the new chair for Sibu Water Board, it gives me great pleasure to
presenting the Board’s Annual Report for the financial year ending
31 December 2017.

FinanCiaL rEViEW
The Board’s water sales had decreased by 2.80%, from the previous
year of RM29.29 million to RM28.47 million, and the other operating
incomes had increased to RM6.80 million against the previous year of
RM5.87 million. Meanwhile, investment income increased by 20.45%,
from previous year of RM0.88 million to RM1.06 million.

The total operating expenditure, including the depreciation expenses,
for the year had increased by 10.63% or RM4.34 million, from RM40.83
Chairman’s million in 2016 to RM45.17 million in 2017. There was a net increase
on the non-depreciation expenses to RM31.85 million from RM26.69
Statement million in 2016, or by 19.33%. The cost of Production and Distribution
had increased by 6.06% and 15.43%, respectively. The net loss for the
year was RM9.98 million.
The Board had been highly dependent on soft loans from the government for its development projects.
At the end of the year, serviceable term loans have accumulated to RM159.30 million.

suPPLY and dEMand
The Board supplied a total of 55,938 megalitres (ML) of fully treated water in the year compared to
53,083 ML the previous year, an increased of 5.38%. The average daily water into supply increased to
153.253 ML from 145.432 ML the previous year, with the maximum daily water supplied recorded at
165.295 ML against the minimum of 143.357 ML. With a 3.86% increase in the number of active services,
from 67,642 in 2016 to 70,252 at the end of 2017, the consumption for the year decreased to 34,129 ML
from 34,463 ML in the previous year, which is equivalent to decrease of 1.00%.

dEVELoPMEnT

TANJUNG MANIS WATER SUPPLY
In 2017, the Board had made several efforts to resolve the technical and contractual issues of the River
Bank Filtration (RBF) Intake Project. However, these Contractual matters had yet to be resolved. The
employment of the Contractor had been determined on 8th November 2017 because of default by the
Contractor. The Board will continue in its endeavor to resolve the dispute with regard to the project.
NON-REVENUE WATER (NRW)
NRW related projects remained the major focus for the Board. A total amount of RM11.48 million of
Federal loans was disbursed to the Board for the expenditure incurred in 2016 and 2017.
The Board had spent RM2.04 million in 2017 to carry out various NRW activities including Meter Renewal,
Development of the District Metering Areas (DMAs), Pipe Assessment, Upgrading of Systems and Mains,
Renewal of Water Mains, Network Maintenance, and also Pressure Management.

There are many challenges in the implementation of the NRW Management Program. Outsourcing of
leakage detection activities was carried out as an effort to overcome the insufficient manpower issue.
Another challenging task for the NRW Team was to focus on reducing the NRW in the areas with high risk
of water losses, such as Sg. Maaw DMA, Lanang Barat DMA, and Stabau DMA.

OTHER DEVELOPMENT PROJECTS
The Federal Government had allocated RM6.96 million loan for the “Renewal and Upgrading of Reticulation
System” which enabled the Board to carry out more pipe replacement works in the distribution network,
especially the replacement/renewal of S.I. (Spun Iron) mains.

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