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Privatization of Water Distribution and Sewerages Systems in Istanbul Assoc. Prof. Dr. Eyup DEBIK Menekse Koral Isik Yildiz Technical University, Environmental Engineering Dept., Istanbul-Turkey

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Privatization of Water Distribution and Sewerages

Systems in Istanbul

Assoc. Prof. Dr. Eyup DEBIK

Menekse Koral Isik

Yildiz Technical University, Environmental Engineering Dept., Istanbul-Turkey

Aim and Methods

• The aim of the study is to determine the effects of the privatization of the services for water and sewerage systems on the productivity,

• Data were obtained from Istanbul Water and Sewerage Administration (ISKI),

• The effectiveness of the subcontractors’ works for some main services such as the connection of a service, cleaning of the channel, maintenance of the inspection well etc. were evaluated,

• The data for 1998-1999 and 2004-2005 were compared according to the services supplied as well as employees number.

Why Privatization?

• To improve the productivity,

• To increase the service speed for the public,

• To decrease the cost for the public by improving the

competition between the private sectors,

• To provide the use of the sources effectively,

• To minimize the governmental budget,

• To reduce the number of the governmental employee

Types of Privatization

• Competitive bidding

• Selling (outright selling or selling of a stock)

• Management transfer

• Operational transfer

• Renting

Privatization in Turkey

• First privatization was maintained in England in 1979 and it

was spread whole of the world from the USA after 1980,

• In Turkey, before 1980, utility services were performed at

almost 100% by the government or governmental agencies or

state-owned enterprises,

• During time, state-owned enterprises were very ineffective

and the services cost higher than the real cost,

• After 1980s, the privatization was increased to prevent the

financial load to the government in Turkey

Privatization in Turkey

4,680

2,717

120 536

187

1,283

8,222 8,096

4,259

6,259

2,275

3,085

1,358

494

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1986-99

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Milyon ($)

Years

Privatization works in Turkey (Privatization Administration, 2012)

Privatization in Turkey

Privatization works in Turkey (Privatization Administration, 2012)

28,60131,20

486,90

243,80

422,90565,50

411,80572,50

292,00465,50

1019,70

38,30

2693,90

38,60258,00

141,42

8600,00

8222,248095,29

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500

9000m

ilyo

n d

ola

r

1985 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

yıllar

Privatization for Water and

Sewerage Services

• Contracting to supply for services and goods by not only governmental

agencies but also private sector or non-profit organization,

– Private sector as the producer,

– Governmental agency as the payer, regulator and controller

• Requirement for the contract affected the works performance

– Defining the work very well,

– Developing the competition for the work and cost

– Defining the sanctions

• Government can see the contractor performance

Privatization for Water and

Sewerage Services

• Antalya Water and Sewerage Administration (ASAT) awarded a contract for

the operation of water and sewerage systems in 1996,

• The contract has covered operation and maintenance, gauges check, invoicing,

collection activities,

• Bursa Water and Sewerage Administration (BUSKI) made almost same

contract around same years,

• After 2 years of Antalya practice, ISKI (Istanbul Water and Sewerage

Administration) planned to make a contract by putting the master plan

Privatization in ISKI

• ISKI made some contract with private sector for the subjects below first:

– Plant and vehicle maintenance,

– Buildings and sites maintenance,

– Mechanical and electrical maintenance,

– Information technologies services,

– Exchanging, testing and repairing of the gauges,

– Obtaining meals

• Water distribution systems operation and maintenance,

• Sewerage systems operation and maintenance,

• Treatment plant operation and maintenance,

• New customer line connections, starting and ending facilities,

• Small construction facilities,

• Invoicing and collection,

• Losses inspections and elimination

Privatization in ISKI

Şube Peronel

12%

6%

1%52%

16%

1%3% 1% 1%1%

4%2%

Makinist Sayac Kon Odaci PostaBaşı

usta başı anahtarcı anah. Yard usta

usta yard. Füitçi işçi şöfür

2005 1999

Toplam Genel Personel

23%

6%

6%65%

Memur BİMTAŞ BELBİM AŞ İşçi

Privatization in ISKI Toplam Genel Personel

11% 3%

0%

86%

Memur BİMTAŞ BELBİM AŞ İşçi

1999 2005

Toplam Genel Personel

23%

6%

6%65%

Memur BİMTAŞ BELBİM AŞ İşçi

Privatization in ISKI

1%1%

52%10%

13%

4%

3%1% 1% 4%1%4% 1% 4%

YENİ SU BAĞLAMA YENİLEME

SAYAÇ AMBAR İSTEK İPTAL

TESİSAT İPTAL TESİSE EK

BORÇTAN KAPAMA BORÇTAN KAPALI SUYU AÇMA

SAYAÇ DEĞİŞTİRME BORÇTAN KAPALI SUYU KONTROL ETME

YENİ SU KOLON SIZDIRAN SAYAÇ DEĞİŞTİRME

ATÖLYE SORGU ABONE DURUM TESPİT

10 YILLIK SAYAÇ DEĞİŞTİRME

yapılmıştır (İSKİ B.Paşa Şube Müd., 2005).

33%

20%

9%

11%

1% 8% 3%

1% 1% 2% 2% 2% 5%

YENİ SU BAĞLAMA YENİLEME GEÇİCİ İSTEK AÇMA İSTEK İPTAL TESİSAT İPTAL TESİSE EK KAÇAK SU KONTROL SAYAÇ ÖLÇÜYE ÇIKAR BORÇTAN KAPAMA BORÇTAN KAPALI SUYU AÇMA SAYAÇ DEĞİŞTİRME BORÇTAN KAPALI SUYU KONTROL ETME PATLAK SAYAÇ BORÇTAN İPTAL ÇALINTI SAYAÇ YERİNE SAYAÇ TAKILMASI YENİ SU KOLON SIZDIRAN SAYAÇ DEĞİŞTİRME ATÖLYE SORGU ABONE DURUM TESPİT 10 YILLIK SAYAÇ DEĞİŞTİRME RES'EN İPTAL

2005 1999

Ending

Service

Starting

Service Exchanging

Gauges

Controlling the

End Service

Privatization in ISKI

Works done by contractors 1999 2005

Total Employee 1285 1241

Total number of works 330,446 1,062,070

The amount of the savings/investments in $ for some works

Ending Service 516,403 1,232,780

Cleaning the inspection wells 18,602 509,201

Elevating the inspection wells 9,905 489,341

Conclusion

Personnel distribution were changed effectively after the

privatization,

Ending services because of the unpaid bills and checking the

end service were performed very effectively,

Number of services and investments for the utility works was

increased dramatically,

Thus; the water and sewerage utility services has higher

quality and is faster than before privatization.

Thanks for your attention…