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PUBLIC CLEANSING
In 2014 alone, the Federal Government
spent RM1.18 bil on Public Cleansing
Total payment to Concessionaires in 2014 was
Of the total amount spent, 74% (or RM1.182
RM1.594 bil, out of which 70% bil) was contributed by the Federal Government
(or RM1.124 bil) was for Public Cleansing
Total Payment to Concessionaires
Collection vs. Public Cleansing (RM, mil) Total Payment to Concessionaires
Jan 2014 Dec 2014 Federal Government vs. PBT Contribution (%)
Jan Dec 2014
452
393
185
154
143
133 193 132 147
43
99 34 36 3
100 17
147 17
112 Negeri Johor Melaka WPKL Pahang Kedah Perlis
56 43 52 54 12 Sembilan
5
Negeri Johor Melaka WPKL Pahang Kedah Perlis
Sembilan
3,500 3,249
RM, Millions
3,018
3,000
2,911
2,377
2,500
2,000 2,292
2,053 2,129
1,500 1,677
1,000
2011 2012 2013 2014 2015 2016 2017 Therefore, the cost is now high
Budget Actual Revised projection compared to initial projection
Three broad areas of options are explored to
achieve cost optimization of Public Cleansing to
the Federal Government
3 Strengthen enforcement
Three broad areas of options are explored to
achieve cost optimization of Public Cleansing to
the Federal Government
Public places cleansing Daily Daily (to revise KPI on Daily N/A
cleanliness level to
consider litter picking and
washing services)
Public toilets cleansing Daily Daily Daily Daily
Public drains cleansing 1 time per month 1 time per month Open drain - 1 time per Open drain - 1 time per
(to revise scope of service month month
& KPI to include Closed drain - 1 time per Closed drain - 1 time per 2
standards service levels for 2 months months
closed drain, monsoon New area effective 3
drain) months (subject to further
8 study on needs)
Option 1
Pasar Malam, Pasar Tani, As decided by RIC As decided by RIC As decided by RIC As decided by RIC
Pasar Pagi
Kerbside grass cutting 2 times per month 2 times per month OR as 2 times per month 1 time per month
decided by RIC
Grass cutting in public 2 times per month 2 times per month OR as 2 times per month 1 time per month
places decided by RIC
4 Certain PBTs (e.g. DBKL) may want service level above To have a supplementary agreement with Concessionaires for scope
current services and new scope beyond the CA
5 Public may complain on reduced frequencies and service Discussions with all PBTs to ensure areas under Category 3 is targeted
on Category 3 areas and would not cause considerable public impact
6 Dispute from Concessionaires and potential legal action Introduce changes in 2018 for lower impact
taken against GoM Syndication with Concessionaires
To explore protection of Government in Clause 30 in CA National
Interest (confirm with BUU KPKT)
Option 1
Implementation timeline
Pre-discussion between JPSPN, SWCorp and selected Implementing Agency: JPSPN
PBTs from Bandaraya, Perbandaran and Majlis Daerah Supporting Agency: SWCorp
Meet with each PBT to:
Group areas according to Standards 1, 2 and 3
Obtain confirmation of detailed inventory list in each
area of each PBT
Determine level of frequency for each activity for
each area
Calculate total cost based on inventories in each area in Review of CA and
the PBTs in each Category negotiations with
Concessionaires
2016 2018
2015 2017
Require discussions Draft the proposed changes to be made in CA post- Finalise and agree on terms
and detailed review of new CA
Obtain buy in from all PBTs discussion on the Signing of new CA
analysis to
possible review of Tripartite Agreement on real
determine financial rates and add a supplementary agreement
impact Obtain approval from Minister/ KSU and related
Ministries (e.g. EPU, UKAS, MoF)
Finalise the proposed changes to be made in CA
Begin process of amending Tripartite Agreement
Prepare Cabinet Paper
Option 2
Initial assumption on the privatization cost of PC is no longer valid (due to insufficient inventory
data at the time), leading to underestimation of actual cost and large amount of additional funds to
High unforeseen
be requested from MoF
costs
While there was a good basis to federalize collection (assets are owned by JPSPN) and
centralization will create enhanced efficiency, Public Cleansing is different as PBTs own the assets
Proposal:
2011 2015 2018 2019 and beyond
Effective date of Decision made and Expected date Savings to Federal Govt. in the long run
Federalisation of PC implementation begins of change Greater efficiency in end-to-end management,
maintenance, cleansing of assets and public
enforcement
Cost incurred by GoM (RM15.18 bil)
Option 3
Who is Implementing Agency: JPSPN PBT can deal directly with contractors, without
responsible? Supporting Agency: SWCorp having to go through SWCorp
May take from 2 years to 5 years to obtain Cabinet Expected to be implemented in 2018, hence
Expected approval and amend Act, Regulations, CA, Tripartite financial risk from legal standpoint may be lower
timeframe Agreement
Key Success
Agreement from all PBTs, Concessionaires
Factors
3 Some PBTs will not be able to afford cost of PC up to desired Federal Govt to provide funding support for high need PBTs, with the
standards condition on being on the panel of tender process
4 There may be minimal cost savings as PBT may incur more Federal Govt to provide support to PBTs on a system and
cost in appointing contractors and require top up from Fed requirements on RFP to appoint suitable contractors at competitive
Govt pricing
5 PBT may have additional requests to rebuild the set up/ Partial transfer of staff from related agencies to assist with PBTs
system (e.g. additional staff, higher management cost), operations
creating additional cost for Fed Govt
6 Dispute from Concessionaires and potential legal action taken To explore protection of Government in Clause 30 in CA National
against Fed Govt Interest (to be advised by BUU KPKT)
To explore implementing this option in 2018 (during review of CA)
to reduce quantum of financial implication
7 Workers who have been transferred to Concessionaires to be Special arrangements with PBT, JPA to transfer staff back to PBT or
given back to PBTs at current cost other agencies
8 Additional workers hired by Concessionaires may be Special arrangements with PBT, JPA to absorb staff to PBT or other
terminated agencies
9 Contractors absorbed by PBTs may not be successful in Contractors with good track record on KPIs can participate in tender
obtaining tender contracts to bid for contract
Option 4
To be given back to respective PBTs: Key enablers required to ensure the success of this
option:
1. Public Places 1. Standard Guidelines and Enforcement by PBT on the 6 activities
2. Public Toilets
3. Markets 2. Education and awareness to the public
4. Hawker Centres 3. Federal to provide top up funding to PBTs that cannot afford
5. Beaches 4. Positions to be given back to PBT
6. Removal of carcasses
Option 4
SWCorp to not
Summary of Claims & Payments from PBTs (By State) accept new areas
FY 2011 to Mar 2015 under the PBT
100%
0%
Johor Negeri Melaka* Perlis DBKL WP Kedah Pahang
Sembilan Putrajaya
Draft clause to be inserted in the Increase the collection rate of funds from PBT,
Addendum of Tripartite Agreement thereby reducing the need for top up from the
What is to be
Obtain approval from KSU KPKT Federal Government
done?
Send to AGC for verification and approval Provide certainty on the available funds for Public
Obtain consent from all three parties Cleansing activities
Signing of Addendum
Penalty is given for breach of To address the dispute and clarify KPIs workshop to be held
KPIs in July 2015 between SWCorp, JPSPN and Concessionaires
However, termination has not JPSPN/ SWCorp to come up with a plan covering: appropriate
been enforced due to dispute grace period given and timeframe to look for a new
and inconsistent understanding contractor should there be a termination
of KPIs
Create disincentive for breach of KPIs Dispute from SWCorp and JPSPN to hold
Concessionaires engagement sessions to ensure
Increased performance of Concessionaires and definition of KPIs are detailed, clear
contractors, leading to better value for the cost and agreed upon to avoid them being
incurred open to interpretation and dispute
Empower SWCorp officers Obtain formal agreement from
Concessionaires
Key enablers to ensure the long term
sustainability of public cleanliness
Key Enablers
1. Introduce a mechanism
to control public littering Reduced frequency in the
Amend Act 672 to include a specific
clause to give power to SWCorp on the cleaning of drains and illegal
enforcement of public littering dumpsites, leading to reduced
Delegate power to capable PBTs with cost
adequate resources to carry out
enforcement The right public behavior is
developed in creating a cleaner
2. SWCorp to increase focus country for long term
on public enforcement: sustainability
Enforcement officers to be placed in Increase revenue through fines
areas with high propsensity for illegal
dumping and public littering SWCorp enforcement officers
Review the process of enforcement to are empowered
shorten timeframe and increase severity
of punishment
Key Enabler 2
Expected outcome:
Action to be taken:
2
increase in current rates
4
5 Introduce punitive action on PBT should
3 payment not be made according to agreed
terms
Strengthen enforcement non-performing
6
Concessionaires
5
Low