Private Sector Essay

In most countries the public sector is more and more determined to reduce levels of budgetary expenditure and to achieve greater value for money. One way of doing this, which is receiving increasing attention, is to involve the private sector. This is often referred to as privatization, a term generally understood to mean the transfer to the private sector of functions, including the provision of services and infrastructure that were previously undertaken by the public sector in order to take advantage of private-sector expertise and capital.

In the past, public sector was the best option in providing public necessities such as water supply, electricity, telecommunications, and public transport services. Many believe the nature of privatization which only aimed for profit achieving was not suitable for public service provision. However, late 70s, because of weak performance by several public sectors around the world, the trust shifted. This is mainly because the inefficiencies shown to the public and have caused many seeking alternative to improve the providing service. The problems occur when public have to deal with low service quality provided by low productivity.

22 March 1995

Construction Cum Operation Agreement (CCOA) – to finance, design, construct, operate, manage and maintain a new 950 million liters per day water treatment plant at Bukit Badong under the Selangor State Government’s Sungai Selangor Water Supply Scheme Phase 2 Project (SSP2).

Both agreements to expire on 31 December 2020.

On 15 December 2004, SYABAS was granted a concession for a period of 30 years, commencing from 1 January 2005 whereby SYABAS has assumed all duties and functions of PUAS in the area of water supply and distribution of water to the consumers within Putrajaya involving industrial and commercial users through XXXX million consumer accounts, thus making it the biggest water supply privatization in Malaysia.

2.0.2 SYABAS (Syarikat Bekalan Air Selangor Sdn Bhd)

SYABAS provides treated water supply services to consumers in Putrajaya. The quality of treated water supplied by SYABAS to its consumers must comply with the National Guidelines for Drinking Water Quality (revised 1991) as issued by the Ministry of Health.

SYABAS vision to be “the leading water provider of quality”. Servicing over millions consumers in Putrajaya, SYABAS aspires