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Message from Chairman

In recent years, extreme weather has become the norm. Taiwan has faced severe challenges from water scarcity and droughts for consecutive years. The water supply industry faces significant challenges in ensuring stable water supply. Looking back on 2023, the challenges TWC faced were still severe. The water conditions in Tainan and Kaohsiung continued to be tight, and the low water levels in reservoirs led to the issuance of orange alert light from March. Luckily, when summer began, Typhoon Doksuri, Typhoon Khanun, Typhoon Saola, Typhoon Haikui, and Typhoon Koinu hit Taiwan one after another, water conditions across Taiwan could be gradually alleviated. However, due to the typhoons’ impact, the total number of households experiencing water outage across Taiwan reached more than 47,000. We initiated the emergency response plan and established a typhoon response team to prepare a total of 479 generators across Taiwan. With the coordination from central authorities for disaster relief resources and assistance from local governments at all levels, water supply was restored in the shortest time possible, successfully overcoming the regional water outage caused by the typhoons. The water conditions vary greatly, alternating between droughts and floods. It may sound contradictory to manage drought while preparing for floods, but it is the reality we have to face.
In the face of intensifying environmental challenges, to provide tap water with sufficient quantity, high quality, and good service, TWC will focus efforts on promoting the following seven main strategic initiatives besides our routine operations.
1.Establish backup distribution piping for enhanced regional water supply flexibility
To strengthen the regional water distribution and utilization capabilities and provide single, important, and fragile life-support pipelines to reduce water shortage crisis, TWC has promoted the Construction Project of Backup Distribution Piping approved by the Executive Yuan, and it is scheduled to bury 17 backup pipelines between 2021 and 2026, with the total length of about 82.6 km and an investment amount of NT$ 19.95 billion, which can provide stable water supply of about 2.61 million m3 every day. Currently, six pipelines have been connected for water supply, and two more pipelines in the “Yunlin-Chiayi water supply system backup pipe project” and “Construction of auxiliary water pipeline from Gangshan to Beiling Pumping Station” are expected to be completed in 2024. 
2.Make good use of information technology to accelerate the reduction of water leakage
To accelerate the reduction of water leakage rate, in addition to reducing water leakage through analysis and regulation of reasonable water pressure, the Company also self-developed Water Advanced Data Analysis(WADA)and combined it with Supervisory Control and Data Acquisition (SCADA) system to identify suspected water leakage areas. In addition, we also cooperate with Industrial Technology Research Institute(ITRI)with the development of IoT cloud-based AI-assisted Water Leakage Detection technology to improve leak detection efficiency to enable early detection of leaks for immediate repair. In addition, we have also planned to invest NT$ 80.8 billion to promote the next phase of Water Leakage Rate Reduction Plan(2025-2032), and the water leakage rate is targeted to reduce from 12.00% by the end of 2024 to 9.77% or lower by the end of 2032. 
3.Promote the modernization of water treatment plants to improve operational efficiency
To improve some old water treatment plants, TWC selected 23 water treatment plants with outdated equipment in urgent need of improvement or those whose produced water quality does not meet internal control standards or whose system water distribution rate is relatively high. As of the end of 2023, 5 water treatment plants(Gonyuan Purification Plant, Jingmian Purification Plant, Hanxi Purification Plant, Dongxing Purification Plant, Pingtung Purification Plant) have been improved. Among the other 18 water treatment plants, 6 are listed as improvement targets by 2026, and the remaining 12 require demolition, reconstruction or new construction.
4.Accelerate improvement of water supply in areas not serviced by public water systems to increase the penetration rate of water supply
As of the end of 2023, the penetration rate of water supply was 94.91%, serving water supply services to 18.52 million people, compare favorably with advanced countries. However, there are still people in some remote areas that still use non-tap water as the source of drinking water. To fulfill our corporate social responsibility, TWC promoted the Pipeline Extension Project for the Phase IV Water Supply Improvement Plan for Areas not Serviced by Public Water Systems from 2022 to 2024, and will actively promote Phase V pipeline extension project to improve the water environment in disadvantaged rural areas.
5.Implement the whole-process water safety plan to ensure water quality
To improve water supply safety, TWC referred to WHO and IWA for the promotion of the Water Safety Practices and established the Key Points for Implementation of Water Safety Plan focusing on the identification and assessment of water quality hazards relevant to human health and the implementation of risk improvement and assurance across all stages from water source to end-users for multi-barrier management of water quality. In the future, we will comprehensively accelerate the promotion of the water safety plan, and relevant concepts will be incorporated into the planning of new and expanded water treatment plants. Meanwhile, the Operational Performance Evaluation & Enhancement(OPEE)and the Alarm Data Transfer System(ADTS) are also combined to ensure whole-process water safety.  
6.Promote net-zero emissions to mitigate extreme weather impacts
To work in line with the government’s net-zero transition policy, TWC started from reducing energy demand, improving utilization efficiency, and developing renewable energy and clean technology. Based on the strategy framework of “low carbon first, zero carbon later” and “demonstration before implementation”, we formulated 5 strategies, including(1)improving energy efficiency,(2)developing green energy, (3)promoting green office,(4)providing energy-saving services, and (5)strengthening green production and effective use of resources and a total of 16 measures. With reference to the GHG reduction target of the Ministry of Environment, the short-term and medium-term reduction targets set for 2025 and 2030 are 10% and 20% respectively compared with the 2005 level. The reduction targets will be constantly reviewed to move toward the goal of net-zero emission by 2050.
7.Implementation of strategies to increase revenue, reduce expenses, and improve financial structure
Before the reasonable adjustment of water price, TWC has actively promoted measures to increase revenue while reducing expenses to alleviate the financial difficulties and improve the financial structure. In terms of expanding financial resources, at current stage, we focus on revitalizing real estate, strengthening investigation of water theft or damage compensation, and installing solar power generation facilities to actively increase revenues. As for reducing expenses, we focus on controlling major expenditure items, improving the revenue water percentage in the water pipe network, strengthening the financial feasibility and investment benefit evaluation of projects to control costs.

It has been five decades since the establishment of TWC. After half a century of hard work, the penetration rate has increased from 41.03% in 1974 to 94.91% as of the end of 2023. The length of pipeline has increased from 8,100 km in 1974 to 67,089 as of the end of 2023. The operational achievements are remarkable and widely recognized. In recent years, we have experienced water shortage crises of the worst drought in a century, the submerged Linjhuang Water Treatment Plant by landslides, and the 0403 Hualien Earthquake. TWC always responds to each disaster actively, learns valuable experience, and completes countless impossible tasks, turning crises into opportunities. In the future, threats from nature will become more severe, and droughts and floods have become the norm, highlighting the urgency of strengthening stable water supply. TWC will uphold forwardlooking and progressive strategies to enhance water supply resilience, actively promote seven main strategic initiatives, and turn challenges into opportunities for improvement, so as to build a water environment that ensures stable supply, quality drinking water, and excellent service.

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Updateing Date:2024-08-06 09:25
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