|Infrastucture, Utilities, & Transportation|
Bagian Kerjasama dan Investasi/ KSI
Bekasi City is a municipal in West Java which has and population of 3.1 million living in an area of 127.8 Ha. Surprisingly, only 24% of those areas which has been covered by the city’s current water supply. The rest are planned to be covered by investment opportunities.
Funding sources for the programs are planned from LG budget, PDAM Tirta Patriot, commercial banks and Investor which are used for Improvement and development of water distribution network, uprating and expanding existing Water, and treatment plant.
The objective of the project is to provide citizens with access to piped drinkable water in the Pondok Gede District (in Jatiwaringin, Jatibening Baru, and Jaticempaka Subdistrict) and Jati Asih District (Jatikramat Subdistrict) which has not been getting access until today. The service area in Pondok Gede District only covers the areas at the south of Jakarta – Cikampek toll road.
Based on our survey, 53% of households in Bekasi is willing to connect to the water distribution network. This project is expected to be able to cover 62% of that demand. This projects will give many economic and social benefits, such as savings in electricity consumption in which people no longer require electric pump to fetch water from the well, conserve health spending and reduce the income loss due to illness, increase the value of the property, and the reduction of poverty.
The project is targeted to cover 2 sub districts and 6 villages. The expected water source and its capacity will be 200 L/second. The water will be distributed through distribution network which extends to about 90 km length to as many as 22,410 connections.
The total investment values of this project is 24.1 million USD, with the partnership period being 25 years. This project is estimated to have the payback period of 10 years, assuming the starting tariff (2017) is Rp 4,700 or 0.35 USD/m2 of water.
In spite of that, there are possible risks that could happen during this project development. Several of them are the possibility of price changes due to inflation and increase in Operation and Management cost.
This project is done as a procurement of which the process will be conducted base on President Policy No. 38/2015 regarding Public – Private Partnership in Infrastructure Provision & Policy of Head of LKPP No. 19/2015 regarding Guideline in Enterprise Procurement for Public-Private Partnership in Infrastructure Provision. All of the procurement process will be held in Bekasi City transparently.