2. WATER SUPPLY IN THAILAND

3. - ENCOURAGE PRIVATE SECTOR INVOLVEMENT - IMPROVE ENVIRONMENTAL STANDARDS - PROVIDE BASIC NEED IN POVERTY AREAS - UTILIZE LOW-COST AND APPROPRIATE TECHNOLOGY SECTOR POLICY

4. WATERURBAN AREASMWA,PWA, MUNICIPALITIES RURAL AREAS PIPEDPWA,LOCAL AUTHORITIES NON-PIPED PWD,DOH,ARD,DMR,.. SEWERAGEBANGKOKBMA OTHER URBAN AREAS PCD,PWD,WMA MUNICIPALITIES SECTOR INSTITUTIONS

5. SECTOR SITUATION AGENCY COVERAGE CAPACITY URBAN AREAS MWA 75% OF 8 MILLION 3.2 MCMD PWA 72% OF 12 MILLION 2.98 MCMD (225 WW’S) OTHERS 70% OF 3 MILLION 0.2 MCMD INDUSTRIAL AREAS INDUSTRIAL AREAS EAST WATER EASTERN SEABOARD IEAT 18 INDUSTRIAL ESTATES RURAL AREAS GOV’T DEPT’S PIPED SUPPLY IN 8,000 VILLAGES NON-PIPED IN 56,000 VILLAGES WATER SUPPLY

6. SEWERAGE AGENCY COVERAGE CAPACITY BMA 90% OF GREATER 1 MCM / D BANGKOK (158 SQ KM) BANGKOK (158 SQ KM) BY 2000 BY 2000 LOCAL GOV. OTHER CITIES PWD, PCD IEAT INDUSTRIAL ESTATES SECTOR SITUATION

7. POPULATION IN URBAN AND RURAL AREAS OTHERS 3 MIL URBAN MWA 8 MIL PWA 12 MIL RURAL 39 MIL

8. MWA 73 PROVINCES 647 MUNICIPAL AREAS 6,946 SQ.KM. 8.6 MILLION POPULATION SERVED PWA 3 PROVINCES 1,621 SQ.KM. PWA MAP AREAS

9. STATISTICS

10. MWA OPERATION HIGHLIGHT YR 2001 F WATER PRODUCTION (Mill.cu.m.) 1,415 F WATER SALES (Mill.cu.m.) 857 F SERVICE AREA (Sq.km.) 1,148 F NO.OF CONNECTION 1,384,958 F AVERAGE MONTHLY WATER CONSUMPTION PER CUSTOMER (cu.m / Month ) 51.6 F AVERAGE WATER CHARGE (Baht/cu.m.) 10.42 F NO.OF STAFF 5,312

11. STATISTICS

12. PWA population served yr 2001 PWA customers 8.62 mill. population in urban areas 23 Mill. population in Thailand 62 Mill population in service areas 11.93 Mill.

13. PWA STATISTICS YR 2001 NO. OF WATERWORKS 225 NO. OF CONNECTIONS(MILL.) 1.72 MILL. PERSONS ~8.6 NO. OF STAFF 6,458 WATER PRODUCED(MILL.CU.M./YR) 704 WATER SOLD (MILL.CU.M./YR) 474 CAPACITIES(MILL. CU.M./DAY) 2.983 CUSTOMER:POPULATION(IN SERVICE AREA) 72 % TARIFF RATE (SATANG/LITER) ~1

14. CUSTOMERS FY 1980-2001

15. MAN POWER FY 1980-2001

16. STAFF RATIO FY 1980-2001

17. WATER PRODUCED AND WATER SOLD FY 1980-2001

18. RURAL WATERWORKS ACQUISITION FY 1984-2001 FY

19. PSP OPTIONS F PUBLIC OWNERSHIP 1) Service contract 2) Management contract 3) Lease contract 4) Concession F PRIVATE OWNERSHIP 5) BOOT (Build-Own-Operate -Transfer) 6) BOO (Build-Own-Operate) 7) Reverse BOOT 8) Joint ownership 9) Outright sale

20. F COMPLETED - PATHUM THANI - BOOT - EAST WATER - SUBSIDIARY - RATCHABURI - BOO - PHUKET - BOO - SATTAHIP - LEASING CONTRACT PWA’S PRIVATIZATION PROGRAM

21. F COMPLETED PWA’S PRIVATIZATION PROGRAM - WESTERN PERIPHERY OF BANGKOK - BOO - CHACHOENG SAO - BOOT - BANGPAKONG - BOOT - NAKHON SAWAN - BOOT - PATHUM THANI - MANAGEMENT (LOSS CONTROL) CONTRACT

22. IN PROGRESS - PATHUM THANI- - CONCESSION RANGSIT - RAYONG - BOOT PWA’S PRIVATIZATION PROGRAM

23. BOOT CONTRACT SIGNED 31 AUG 1995 CONTRACT PERIOD 25 YEARS++ CONTRACT VALUE 4,300 MB OPENED 25 SEPT 1998 TOTAL CAPACITY 288,000 CMD MINIMUB PURCHASE 140,000 220,000 CMD SHAREHOLDERS- THAMES WATER - CH. KARNCHANG - BERLI JUCKER - PWA - THAI CAPITAL RICE - KRUNG THAI BANK - THAI MILITARY BANK PATHUM THANI WATER

24. FINANCIAL - “LOWEST BID” - “TRUST” OR “REPUTATION” TECHNICAL SELECTION CRITERIA

25. INCENTIVES. EXEMPT ON IMPORT DUTIES. TAX HOLIDAY EVALUATION OF TENDERS. TECHNICAL ASPECT. FINANCIAL ASPECT RATE OF RETURN. NEGOTIABLE BUT MUST BE REASONABLE PROFIT REPATRIATION. NO RESTRICTION EQUITY LIMIT. NO LIMIT FOR WATER & SEWERAGE SECTOR GUARANTEES. MINIMUM PURCHASE SOME CONSIDERATIONS

26. DEMAND ESTIMATES QUALITY OF SERVICES PENALTIES FOR BAD SERVICES WORK FORCE CAPITAL INVESTIMENT PLANS RATES ARBITRATION RELATION WITH CONSUMERS MAIN CONTRACT PROVISIONS

28. Cabinet’s Resolution 12 Sep 1992 The Royal Irrigation Department (RID) The Provincial Waterworks Authority (PWA) Eastern Water Resources Development and Management Company Limited to continue its role as to develop raw water resources & reservoirs to establish a new company to be responsible for the development and operation of the raw water delivery system in Thailand’s eastern seaboard The Cabinet’s Resolution to Establish EAST WATER

29. PRE POST PWA EAST WATER PWAIEATPRIVATELOANS B 2,000 m EAST WATER B 500 m ~ B 4,500 m for 3 Projects 100% (10 m B) B 2,000 m 44%5%51% East water’s Pre and Post Privatized Shareholding Structure

30. THE STATE * RELIEVED FROM FINANCIAL BURDEN * RECEIVES “RETURN” ON INVESTMENTS - REVENUE AND PROFIT SHARING - TAXES - RAW WATER FEE * RECEIVES DIVIDEND AND OTHER PAYMENTS FOR SUPPORTING (SOCIAL) PROGRAM THE PUBLIC * BETTER SERVICE * MORE RELIABLE SYSTEMS * QUICKER IMPLEMENTATION * POSSIBLY LOWER TARIFF PERCEIVED BENEFITS TO THE STATE AND THE PUBLIC

31. WHAT ’S NEXT ?

32. MWA LISTING ? SPLIT INTO LISTING ? 2 AREAS ?

33. PWA LISTING ? SPLIT INTO LISTING ? 5 AREAS ?