A/HRC/42/47/Add.8  The Indah Water Konsourtium (IWK) was established before the reform initiatives. 4. Paragraph 15 4. In Peninsular Malaysia, the responsibility related to water resource matters lies with the state governments, which manage existing water basins, canals, rivers, and water catchment areas. Many states provide water directly except for certain parts of the state of Johor, where water services are privatised. As for sanitation, Indah Water Konsortium (IWK) provides sewerage services to states in Peninsular Malaysia except for the state of Kelantan and the two districts in the state of Johor, Sabah and Sarawak. The Special Rapporteur notes that it is essential that the federal government assess whether the absence of federal bodies in those States has impacted the quality of services. This assessment should be the fundamental guideline for stronger support to sewerage service and individual sanitation solutions in East Malaysia and states of Kelantan and Johor. Comment from the Government of Malaysia:  The accurate terminology is Indah Water Konsortium (IWK). Service Providers 5. Paragraph 17 5. In the state of Sarawak, several water providers that are public companies owned by the state of Sarah – such as Kuching Water Board, Sibu Water Board and Laku Management - cover water supplies in urban areas. Further, the Sarawak Sewerage Department of the Local Ministry of Housing provides central sewerage services to urban areas. For rural areas, the water supply is the responsibility of the Rural Water Supply Department under the Ministry of Utility Sarawak. Comments from the Government of Malaysia: Malaysia would like to propose reformulation of this paragraph as follows:  In Sarawak, the provision of water supply services is under the purview of the Ministry of Utilities Sarawak. The water supply agencies under the Ministry are Kuching water Board, Sibu Water Board, Laku Management Sdn Bhd and Rural Water Supply Department. Both Kuching Water Board and Sibu Water Board are statutory bodies providing water supply to Kuching and Sibu respectively and their surrounding areas. Laku Management Sdn Bhd is a wholly owned company of Sarawak Government and provides water supply to Miri, Bintulu and Limbang.  The Rural Water Supply Department provides water supply to the remaining areas of Sarawak including the other towns and rural areas. Sewerage Services Department Sarawak of Ministry of Local Government and Housing provides centralised sewerage services to parts of Kuching City while Bintulu Development Authority provides centralised sewerage services in Bintulu town. Other areas are relying on individual treatment system and are served by their respective local and municipal authorities Financial Sustainability of Service Providers 6. Paragraph 18 6. In order to address financial sustainability of service providers, the reform resulted in the creation of PAAB, a Government owned entity responsible for water asset management. PAAB works on the concept of ‘build and lease’ and after funding the construction of water infrastructure, PAAB leases the infrastructure to water service 3