Serba Dinamik Annual Report 2019

112 2019 ANNUAL REPORT INDUSTRY IMPACT ON OUR BUSINESS SERBA DINAMIK HOLDINGS BERHAD WAT E R U T I L I T Y I N D U S T R Y Some of the recent developments in the water utility industry include, amongothers, theRM85millionSamariang Phase 1 Water Grid Project in Sarawak has commenced construction in 2020 and is expected to be completed in 2021, the RM68 million Pokok Sena water treatment plant that has commenced operation in November 2018, the RM2 billion Papan 1 sewerage upgrading project in Ipoh that will be completed by 2021 and the RM8 billion Langat 2 water treatment plant that is targeting completion in 2022. The sewerage treatment system in Peninsular Malaysia can be segmented into two main categories, namely connected sewerage services, and the septic tank and pour flush system. The connected sewerage treatment system channels household, commercial and industrial wastewater through connected pipes to the sewerage treatment plant ("STP"). The septic tank and pour flush system contain wastewater in a tank, and solid waste is broken down in the tank before liquid effluent is released into the drain. The septic tank and pour flush system generally result in negative environmental effects. In 2018, approximately 70% of the sewerage treatment system in Peninsular Malaysia is supported by public and private STP, covering approximately 30.1 million population equivalent ("PE"). In the 11th Malaysia Plan, the government focused on improving the country’s sewerage system to address environmental pollution and safeguard public health. The government aims to reduce the use of individual septic tank and pour flush systems by developing 80% sewerage connected service coverage in Malaysia, especially in the main cities by 2020. The National Sewerage Master Plan was created to provide integrated and holistic long-term policy direction to encourage migration from individual septic tanks and pour flush systems to standardised sewerage treatment systems to minimise pollution. (Source: Malaysia Water Association) Figure 4-29: Water Treatment Plant Design Capacity Design Capacity (’000 MLD) Growth Rates (%) 2017 2016 2013 2014 2015 18.7 3.4% 0.7% 1.1% 2.9% 2.2% 18.3 18.9 19.7 19.1 2013 - 2017 CAGR = 1.8% 2015 - 2017 CAGR = 2.2%