ppp of water supply in indonesia - kementerian pekerjaan...

PPP of Water Supply in Indonesia

August 2017

BPPSPAMMinistry of Public Works and Housing

1MINISTRY OF PUBLIC WORKS AND HOUSINGIMPLEMENTATION AND IMPROVEMENT NATIONAL AGENCY FOR WATER SUPPLY SYSTEM

2

WATER SUPPLY SERVICES IN INDONESIA

Served by Local Water Supply Companies called Perusahaan Daerah Air Minum (PDAM) (safe access, piped)

There are total 387 PDAMs in Indonesia and 39 operators are from private sectors.

Existing house connection provided by PDAM is about 10.6million HC in 2015.

71.14% is served by safe water access (2016). For 17.2% is served by PDAM and 53.95% served by non piped water

Average NRW level is 32,10%

70% of the PDAMs operate below production cost (non FCR tariff)

Everage tariff Rp. 4.581,-/m3, everage production cost is Rp.

HEALTHY LESS HEALTHY SICK

(368

Sources: BPPSPAM, 2016

MINISTRY OF PUBLIC WORKS AND HOUSINGIMPLEMENTATION AND IMPROVEMENT NATIONAL AGENCY FOR WATER SUPPLY SYSTEM

2012 2013 2014 2015 2016

171 176 182196

198

101 104 103 100108

5670

7472 65

PDAM Performance 2012-2016

3

FUNDING NEEDEDTO REACH NATIONAL TARGET

IDR 204.93 Trillion

IDR 48.07 Trillion

Other Source ofFunding

National Budget

Total Funding Required (2015 – 2019) = IDR 253 Trillion

Sources: Directorate General of Human Settlements, Ministry of Public Works and Housing, 2015


4

6 BASIC PRINCIPLES FOR WATER RESOURCEMANAGEMENT RESTRICTION

1. Water resource provision could not disrupt human right to get water resource access;

2. Human right for water resource should be fulfilled by government;

3. Environmental Sustainability;

4. Government has responsibility to monitor and control water resource;

5. Main priority of water resource provision is delegated to SOE/ROE (PDAM); and

6. Government has a possibility to give license for business entity to conduct water resource provision based on tight requirement.

*AS STATED IN CONSTITUTIONAL COURT DECISION No. 85/PUU-XI/2013


5

SUBJECT ON PPP OF WATER SUPPLY SECTOR

Contracting Agency

• Board of Director of SOE / ROE that has been

delegated by the Minister/ Head of Institution/

Head of Region act as CA on behalf of the

Ministry/Institution/Region in accordance with the

existing law and regulation.

• Project bundling is allowed, which is the Board

Director of SOE / ROE of some Regions will act

together as the CA by signing a MoU and agreed on

who will act as the CA Coordinator.

Private Sector

• State Owned Enterprise (SOE),

• Regional Owned Enterprise (ROE),

• Business entity in the form of Indonesian Limited Liability Company (PT)

• Foreign business entity

• Cooperatives

Slide - 5

*Based on Presidential Regulation No.38 /2015 on PPP in accordance with Government Regulation No.122/2015 about Water Supply Development System


BASED REGULATION OF WATER SUPPLY SECTOR PPP

Government Regulation No.122/2015

Article 56, Subsection 1 stated :In the case of state-owned enterprises or enterprises (as referred in Article 54 subsection (3) letter b)is not able to finance the Implementation of SPAM with a network of piping inside and outside the service area of state or local government (SOEs/ROEs), state or local government (SOEs/ROEs) may cooperate with private enterprises with certain principles.

Article 56, Subsection 2 stated :Cooperation with the private enterprises in principle :

a. Raw water license is owned by SOE / ROE

b. SPAM implementation is done with the cooperation of prioritizing low-income communities

Article 56, Subsection 3 stated :Cooperation with private entities as referred in subsection ( 1 ) may only be in the form of :

a. Investment Development SPAM and/or management of SPAM on Raw Water unit and a production unit;

b. Investment on distribution unit which then operated and managed by the State or Regional Owned Enterprise (SOE/ROE); and/or

c. Operation and maintenance of technology investments in order to seek the Implementation of SPAM effective and efficient mechanisms of performance-based contracts.


BASED REGULATION OF WATER SUPPLY SECTOR PPP

Ministry of Public Works and Housing Regulation No.19/2016

Forms and Types of Government SupportArticle 5 stated :Government Support In SPAM Cooperation Which Is Implemented By Mechanism Of KPBU In The Form Of:

A. Fiscal Support From The Central Government Or Local Government And / OrB. Non-Fiscal Support From The Central Government And / Or Local Government

Article 6, Subsection 1 stated :1. Type From Government Support As Referred In Article 5 Consists Of :

A. Government SupportB. Other Government Support, AndC. Government Guarantee

AssignmentArticle 81. The Central Government And / Or Regional Governments May Assign An Assignment To BUMN Or

BUMD To Implement SPAM Cooperation Requiring Government Support2. The Assignment Of The Central Government And / Or Regional Government As Intended In

Paragraph (1) Shall Be Made By Issuing Assignment Letter To BUMN By Issuing Assignment Letter To The BUMN Or BUMD In Accordance With The Authority.


NoWater Supply PPP

Project

Benefit Population

served

(persons)

Investment

Cost

(Billion Rupiah)Capacity

(L/s)

House

Connection

1 Umbulan Water Supply 4.000 310.000 1.300.000 2.100

Total 4.000 310.000 1.300.000 2.100

WATER SUPPLY INVESTMENT PLAN THROUGH PPP SCHEME

ON GOING – CONSTRUCTION

(appendix 1)


NoWater Supply PPP

Project

Benefit Population

served

(persons)

Investment

Cost


(L/s)

House

Connection

1Bandar Lampung Water

Supply 750 60.000 300.000 1.100

2Jatisari Water Supply

Bekasi City200 20.000 100.000 60,17

Total 950 80.000 400.000 1.160,17


ON GOING – BIDDING PROCESS

(appendix 2)

9MINISTRY OF PUBLIC WORKS AND HOUSINGNATIONAL SUPPORTING AGENCY FOR WATER SUPPLY SYSTEM DEVELOPMENT


NoWater Supply PPP

Project

Benefit Population

served

(persons)

Investment

Cost


(L/s)

House

Connection

1Pondok Gede Water

Supply Bekasi City300 24.000 120.000 253

2Gresik Regency Water

Supply1.000 80.000 400.000 776

Total 1.300 104.000 520.000 1.029


READY TO OFFER

(appendix 3)



PROJECT PREPARATION

(appendix 4)

No Water Supply PPP Project

BenefitPopulation

served (persons)

Investment Cost

(Billion Rupiah)Capacity (L/s)House

Connection

1 Jatiluhur 1 Water Supply 5.000 400.000 2.000.000 2.080

2 Karian Water Supply 4.600 368.000 1.840.000 3.100

3West Semarang Water Supply

750 52.500 262.500 498

4 Pekanbaru City Water Supply 500 40.000 200.000 490

5Cisadane 1 Bogor Regency Water Supply

200 16.000 80.000 80

6Ciawi Bogor Regency WaterSupply

100 8.000 40.000 50

Total 11.150 884.500 4.422.500 6.298




UMBULAN WATER SUPPLY

Capacity 4.000 L/Sec

Source of Raw Water Water Spring Of Umbulan

Estimated Investment IDR 2.050 Trillion (based on bid of businessentity the winner of auction)

IRR Project 12%

Magnitude of FeasibilitySupport (VGF)

IDR. 818 Billion (based on bid of businessentity the winner of auction from maximummagnitude while decision from KemenkeuIDR. 823 Billion)

Benefit recipients 1,3 million people or 310.000 SR

Cooperation BOT Production system and transmission

Scope of activities - Intake development 4.000 L/sec

- Procurement & installation transmissionpipe of raw water ND 1000-1800 mm along93 km

- Development 2 house of pump 4.000 L/secand the equipment

- Offtake development 16 units and reservoirin 5 District/cities

Responsibility Of TeamProject (PJPK)

Provincial Government of Jatim

Time of Construction 2 years, start from effective time of PKS

Mechanism work KPBU

Cooperation Period 25 years start when COD

Cost of Raw Water Rp 2.370/ m3 (PPP Company – PDAB)Rp 2.444/ m3 (PDAB – PDAM)

Offtaker 1. PDAM Surabaya City : 1.000 L/sec2. PDAM Pasuruan regency: 410

L/sec3. PDAM Pasuruan City: 110 L/sec4. PDAM Sidoarjo regency : 1.200

L/sec5. PDAM Gresik regency : 1.000

L/sec6. PDAB Prov. Jawa Timur: 200 L/sec

ON GOING - CONSTRUCTION


Appendix 1

13

PasuruanRegency

410 l/sec (2016)

PDAB200 l/sec (2016)

U

Information:

Offtake

Gresik Regency1.000 l/sec(2016)

Surabaya City1.000 l/sec (2016)

Sidoarjo Regency1.200 l/sec(2016)

Pasuruan City110 l/sec (2016)

Water SpringUmbulan

4.000 l/sec

PETA RENCANA JALUR PERPIPAANDISTRIBUTION PIPELINE SCHEME


14

Umbulan Water Supply Progress

1. There were several items that has been done Before financial closure :• Conditions Precedent – PJPK : AMDAL, principle permit, certainty of land location in Umbulan, ROW main

distribution pipeline, point location and drawing DED Offtake.• Technical Permits• Detail Engineering Design (DED)• Loan Agreement• Final Draft final contact (pipe, M/E/P, Instrumen, subkon)• Construction preparation : Permit, pipe material, work equipment, manpower, etc.

2. Establishment of KPBU SPAM Umbulan Decision Of Team East Java Governor Number.188/126/KPTS/013/2017 on 24 Februari 2017

3. Independent Consultant Consultative Service Agreement Umbulan KPBU-SPAM Project between PJPK hasbeen signed by PT.Meta Adhya Tirta Umbulan and PT. Lapi Ganeshatama Consulting. On 6 Februari 2017oversees, monitors, and inspects the work and implementation of design and construction obligations.

4. On June 16, 2017, a coordination meeting was held on the preparation of the fulfillment of bulk water forPDAM Sidoarjo Regency and PDAM Surabaya City

5. The groundbreaking plan will take place on the Second Week of July 2017

MINISTRY OF PUBLIC WORKS AND HOUSINGNATIONAL SUPPORTING AGENCY FOR WATER SUPPLY SYSTEM DEVELOPMENT

ON GOING - CONSTRUCTION



BANDAR LAMPUNG CITY WATER SUPPLY

Scope Project and Estimated Cost

Cooperation form: BOT + (Built Operate Transfer +)

Capacity: 750 l/s

Investment Estimation : IDR 1.100 Billion

Cooperation period: 25 years

Target of Coverage: 60.000 House Connection

Scope Project:

• Construction of intake 750 l/s

• Procurement and construction of water transmission pipe

Diameter 1.000 mm, length 21 km

• Construction of WTP 750 l/s and the accessories.

Project SchemeON GOING BIDDING PROCESS

Project Status

• One on one meeting at 28 December 2016

• Announcement of the prequalification results on 16 June 2017 with 5

shortlist as follows: PT Bangun Cipta Kontraktor - PT Bangun Tjipta

Sarana KSO, Adaro - Adhi Karya - Suez Consortium, Salcon MMCB

Consortium, PP - WABAG Consortium, Maynilad Consortium - WIKA -

Hydrocam.

• On preparation of tender process (preparing Request for Proposal

Document)


Appendix 2


JATISARI WATER SUPPLY – BEKASI CITY

Lingkup Kerjasama

- Total Capacity : 200 l/sec.

- Capacity of IPA : 2 x 100 l/sec

- Capacity Reservoir 4.000 m3

- Investment estimation: Rp 60,17 Billion

- Cooperation Type : BOT (Built Operate Transfer)

- Cooperation Mechanism: B to B

- Duration of Cooperation: 20 years

- Service Target : 20.000 SR with 100.000 people

Status

• The process of prequalification of business entities has been done by producing

two shortlist: PT. Bali Build Tirta and PT. Taman Tirta Sidoarjo.

• The finalization of Pre-Feasibility Study, RFP, and Cooperation Draft Document

have been completed.

• The selection process of business entity was started at April 2017and the signing

contract is targeted on August 2017.

16

Service Area

Jatisampurna District, Jatiasih

District, dan Pondok Melati District

ON GOING BIDDING PROCESS


17

SPAM PONDOK GEDE – JATIASIHBEKASI CITYREADY TO OFFER

Status Terakhir

• In the finalization of Pre-FS and Procurement Document assisted by consultant.

• AMDAL document already finished but still in the process of obtaining AMDAL

permission from BPLH Bekasi City.

• Based on the water balance analysis related to the availability of raw water concluded

that demand for raw water withdrawal by PDAM Bekasi is 400 L/sec of WTC with the

intake point after Dams Bekasi (TB 46-47) can not be met. Therefor the prefeasibility

study is still being reviewed.

Services Area

Pondok Gede and Jati Asih Districts

include :

- Jati Bening

- Jati Bening Baru

- Jati Kramat

- Jati Makmur

Medan Satria

BekasiUtara

BekasiTimur

BekasiBarat

BekasiSelatan

Rawa Lumbu

Mustikajaya

BantarGebang

Jati Asih

PondokGede

PondokMelati

JatiSampurna

Project Detail

Cooperation Form:

BOT + (Built Operate Transfer +)

Cappacity:

300 liter/second

Raw Water Source:

West Tarum Canal

Investment Estimation:

IDR. 253 Billion (on progress of review FS)

Project Scope:

- Water Treatment Plant 300 L/s

- Reservoir 4.000 m3

- Distribution pipeline 90 km


Appendix 3

PONDOK GEDE – JATIASIH WATER SUPPLY

SCHEME OF SPAM PONDOK GEDE

READY TO OFFER



GRESIK REGENCY WATER SUPPLY

Scope of Work1. Construction of intake 2. Construction of WTP 1.000 l/s with its supplementary building3. Construction of Reservoir 10.000 m3

4. Procurement and installation of ME5. Procurement and installation of primary, secondary, and tertiary distribution pipelines

Project Detail

Cappacity : 1.000 L/s

Investment Estimation : Rp 790 Billion

Tariff Adjustment : 12% / 2 years

Cooperation Form : BOT +

Cooperation Period : 25 years

Bulk Water Price IDR 4.000

Status

• Has conducted discussions on Pre-Feasibility Study

Documents with the Government of Gresik on March

22, 2017

• Pre-Feasibility Study document has been approved by

head of local government

• On finalization of tender document

• Raw water lisence on process

Gerak Sembayat DAM

READY TO OFFER



GRESIK DISTRICT

PPP Project Location

Service Areas

North Gresik (Kecamatan Bungah) and non-domestic area (industry).

READY TO OFFER




READY TO OFFER

SCHEME OF WATER SUPPLY GRESIK DISTRICT




22

JATILUHUR 1 WATER SUPPLY (Jakarta-Bekasi-Karawang)

Technical and Investment Data

Cooperate Type: BOT (Built Operate Transfer)Capacity : 5.000 l/sEstimated Investment : IDR. 2,08 TrillionBenefit Recipients: 2.000.000 People or 400.000 SRProject scope: • Intake Development 5.500 l/s• Procurement and installation of drinking water

transmission pipes ND 300-1800mm along 38,5 km• Construction of 6 units of Reservoir offtakes and its

accessories

Cooperation of Enterprises

PPP Unsolicited scheme.Govt. Contracting Agency : Perum Jasa Tirta (PJT) IIConsortium (inisiator) : PT. Pembangunan Jaya (BUMD DKI Jakarta), PT. Gemah Ripah (BUMD Jawa Barat), and PT. Wijaya Karya.Offtaker:PAM Jaya: 4.000 l/sPDAM Bekasi City : 300 l/sPDAM Bekasi Regency: 350 l/sPDAM Karawang Regency : 350 l/s

PROJECT PREPARATION


Appendix 4

23

Karawang Offtake

Legend

Jatiluhur to Jakarta Open Chanel

Jatiluhur Reservoir

Additional Delivery Pipeline Required

Water Supply Transmission Line

IPA Cibeet

TegalgedeOfftake

TambunOfftake

Bekasi Timur

Offtake

IPA Bekasi

JatibeningOfftake

JakartaCawang

JatiluhurReservoir

Muara Karang Offtake

System IPA Cibeet

System IPA Bekasi

Sentra Timur

Offtake

Offtake berupa tapping tanpa reservoir

Infrastruktur yang akan dibangun

Eksisting

SYSTEM MAP PLAN DESCRIPTION PROJECT

JATILUHUR 1 WATER SUPPLY (Jakarta-Bekasi-Karawang)PROJECT PREPARATION


24

SCHEME SYSTEM SPAM OF JATILUHURPROJECT PREPARATION


Implementation Progress Jatiluhur Water Supply

25

PROJECT PREPARATION

• A coordination meeting was held at the Meeting Room of the Directorate General

of Human Settlements along with all stakeholders on March 22, 2017 and it was

agreed that the Jatiluhur 1 SPAM project will be implemented through the existing

KPBU mechanism and the existing Cooperation Agreement will be made as

necessary adjustments.

• The consortium of PT Jaya Konstruksi Manggala, PT Tirta Gemah Ripah and PT

Wijaya Karya delivered Letter of Inten (LOI) to PJT 2 as PJPK on May 4, 2017.

• PJT 2 has answered the LOI of the consortium on May 18, 2017 which invites the

consortium to immediately complete the Pre Feasibility Study preparation.

• In the initial process to include government guarantee from PT PII. A preliminary

discussion was conducted at the PT PII Office on 8 June 2017.

• PJT 2 was conducted a review of the downstream feasibility of each Offtaker

PDAM and discussions have been made with PDAM Bekasi City and PDAM

Karawang Regency on 20-21 June 2017.

• The consortium has submitted prefeasibility study on 21 August 2017.


26

WEST SEMARANG WATER SUPPLYPROJECT PREPARATION

Semarang Barat

32 %

WilayahSwitching

50%

Project Description

1. Capacity : 750 L/sec

2. Raw Water Source: DAM Jatibarang

3. Benefit Recipients: 52.500 house connection

4. Scope of Coorperation:

- Intake Development 1050 l/sec

- Installation of Raw Water Transmission Pipes 2.2 km

(dia. 900mm x 2 line)

- WTP Development 1,050 L/sec, Rapid sand filter

- Procurement and Installation of Transmission pipes

WTP – Reservoir 5: 3.1 km (dia. 700mm)

- WTP – Reservoir 1: 9.7 km (dia. 450mm)

- WTP – Reservoir 2: 2.4 km (dia. 450mm)

Project Status

1. Letter of Assignment from the Mayor of Semarang to the Director

of PDAM Tirta Moedal Kota Semarang has been issued as SPJ

PJPK (GCA) West Semarang Project on June 2, 2017.

2. The coordination meeting on technical and financial aspects of

the related stakeholders (PDAM, Ministry of Public Works and

Housing, Ministry of Coordinating and The Economy, KPPIP and

Ministry of Financial) was held on 14 June 2017

3. GCA (PDAM Semarang City) has finished Outline Business

Case (OBC) assisted by BPPSPAM

4. Ministry of Finance is giving a Project Development Facilities

(PDF) to the GCA to help the finalization of Final Business Case

(FBC) and transaction advisory.

Service Area

Semarang City (Tugu Subdistrict, Ngaliyan Subdistrict in Semarang Barat and switching part of East Semarang)

Estimated Value Of Investment

IDR 498 Billion (on study process)

Type and Mechanism of Cooperation

Build Operate Transfer (BOT) - PPP


27

West Semarang Water Supply Scheme

WEST SEMARANG WATER SUPPLYPROJECT PREPARATION


28

KARIAN WATER SUPPLY

Information

The preparation of a feasibility study

document by the Business Entity of the

initiator (K-Water)

Technical and Investment Data

- Capacity : 4.600 L/s

- Scope of Cooperation:

• Development of WTP/IPA 397.000

m3/day

• Pipeline 31 km

• Construction of 3 reservoirs

- Cooperation Period: 30 years

- Estimated value of Investment : USD

216 Billion (around IDR. 3,1 Trillion)

- Type of Cooperate: BOT

- Mechanism Cooperation: PPP

unsolicited

- Consortium (initiator) : K - Water

Regional Service Area

Tangerang City, South Tangerang City,

and West JakartaWTP(Q=397,000㎥/d)

Karian Dam

WTP

Conveyance Main

Transmission Main

Pump Station

Intake

Reservoir

Under PPP scheme

K-EXIM Loan (TBD)

PROJECT PREPARATION



29

KARIAN WATER SUPPLYPROJECT PREPARATION

TECHNICAL SCHEME OF SPAM REGIONAL KARIAN

Foreign LoanUnsolicited PPP

(K-water)

K-EXIM Loanand GOI Portion



PEKANBARU CITY WATER SUPPLY

Project Scope

- Total Cappacity : 500 l/s (for the supply of 7 districts).

- Investment Estimation : IDR. 485 Billion

- Project Scope :

- Water Treatment Plant Cappacity: 500 l/s

- Intake & Raw Water cappacity 550 l/s

- Reservoir cappacity 8.500 m3

- HDPE transmition pipeline

- Main distribution pipeline HDPE

- Cooperation form : BOT + (Built Operate Transfer +)

- Cooperation period : 25 years,

- Target of coverage : 40.000 House Connection (there are

existing distribution pipeline).

Service Area (7 districts)

Sub District: Payung Sekaki, Sukajadi, Kota Sail,

Senapelah, Lima Puluh Kota, dan Pekanbaru City

Status

• There is a change in contracting agency from the head of

region to the regional owned enterprise according to the

Government Regulation No. 122/2015 on Water Supply

Development System.

• Mayor of Pekanbaru City has appointed The Director of PDAM

Pekanbaru City as the PJPK of the project (GCA).

• Ministry of Finance is giving a Project Development Facilities

(PDF) to the GCA to help the finalization of Final Business

Case (FBC) and transaction advisory.


PROJECT PREPARATION


31

Scheme of Water Supply Pekanbaru City

PEKANBARU CITY WATER SUPPLY PROJECT PREPARATION


BOGOR REGENCY WATER SUPPLY

Title Water Supply Cisadane 1Water Supply Ciawi and the

sorrounding

Capacity 200 liter/second 100 liter/second

Cooperation Form Build Operate Transfer (BOT) Build Operate Transfer (BOT)

Cooperation Period 25 years 25 years

Estimated Cost IDR 80 Billion IDR 50 Billion

Scope of serviceKedung Halang and Ciomas

Sub District (9.800 house connection)

Ciawi and Mega Mendung Sub District

(8.000 house connection)

Raw Water Cisadane RiverSuka Birus River (Upstream Ciliwung River)

Scope of Project

• Build Intake 220 l/s (investor)• Build Water Treatment Plant

200 l/s (investor)• Reservoir 2.000 m3 (investor)• Build Distribution and

Reticulation Pipe (PDAM)

• Build Intake 110 l/s (investor)

• Build Water Treatment Plant 100 l/s (investor)

• Build Distribution and Reticulation Pipe (PDAM)

Status ProjectProcess preparation feasibility study and document procurement

Process preparation feasibility study and document procurement


PROJECT PREPARATION


CISADADE-

BOGOR WATER SUPPLY



PROJECT PREPARATION

CIAWI-

BOGOR WATER SUPPLY



PROJECT PREPARATION