Privatization of Water Distribution and Sewerages Systems in Istanbul Assoc. Prof. Dr. Eyup DEBIK Menekse Koral Isik

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1 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

2 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 and were compared according to the services supplied as well as employees number.

3 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

4 Types of Privatization Competitive bidding Selling (outright selling or selling of a stock) Management transfer Operational transfer Renting

5 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

6 Privatization in Turkey Milyon ($) 0 4, ,222 8,096 6,259 4,259 3,085 2,717 2,275 1,283 1, Years Privatization works in Turkey (Privatization Administration, 2012)

7 milyon dolar Privatization in Turkey , ,70 486,90 422,90 572,50 28,60 131,20 243,80 411,80 292,00 465,50 38,30 Privatization works in Turkey (Privatization Administration, 2012) 2693,90 38,60 258, yıllar

8 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

9 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

10 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 3% 1% 1% 1% 1% 4% 2% 16% 12% 1999 2005 52% 1% 6%

11 Privatization in ISKI Şube Peronel 3% 1% 1% 1% 1% 4% 2% 16% 12% % 1% 6% Makinist Sayac Kon Odaci PostaBaşı usta başı anahtarcı anah. Yard usta usta yard. Füitçi işçi şöfür

12 Toplam Genel Personel Privatization in ISKI Toplam Genel Personel 6% 65% 11% 3% 0% 23% 6% % 65% 6% 6% Memur BİMTAŞ BELBİM AŞ İşçi Memur BİMTAŞ BELBİM AŞ İşçi Memur BİMTAŞ BELBİM AŞ İşçi

13 Privatization in ISKI yapılmıştır (İSKİ B.Paşa Şube Müd., 2005). 1% 4% 1% 4% 4% 3% 1%1% 1% 1% 4% 3% 1% 1% 1% 2% 2% 2% 5% 8% 13% 11% 10% % 9% 20% % Starting Service BAĞLAMA AMBAR İPTAL N KAPAMA DEĞİŞTİRME KOLON SORGU K SAYAÇ DEĞİŞTİRME Ending Service YENİ SU BAĞLAMA YENİLEME GEÇİCİ Controlling the İSTEK İPTAL TESİSAT İPTAL TESİSE YENİLEME KAÇAK SU KONTROL Exchanging SAYAÇ ÖLÇÜYE ÇIKAR BORÇT İSTEK İPTAL BORÇTAN End Service KAPALI SUYU AÇMA Gauges SAYAÇ DEĞİŞTİRME BORÇT TESİSE EK PATLAK SAYAÇ BORÇTAN İPTAL ÇALINT BORÇTAN KAPALI SUYU AÇMA YENİ SU KOLON BORÇTAN KAPALI SUYU KONTROL ETME SIZDIRAN SAYAÇ DEĞİŞTİRME ATÖLYE ABONE DURUM TESPİT SIZDIRAN SAYAÇ DEĞİŞTİRME 10 YILLIK SAYAÇ DEĞİŞTİRME RES'EN ABONE DURUM TESPİT

14 Privatization in ISKI Works done by contractors Total Employee 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, ,201 Elevating the inspection wells 9, ,341

15 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.

16 Thanks for your attention

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