of water supply system in pondok gede and jati asih

PUBLIC PRIVATE PARTENERSHIP (PPP) OF
WATER SUPPLY SYSTEM
IN PONDOK GEDE AND JATI ASIH, BEKASI CITY
Project Overview
Background
Need Adequate
Infrastructure (incl.
Water Supply
Service Coverage (2014) :
24.04%
Coverage Target (2019) :
100%
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Project Overview
Strategy to Achieve Target
• Improvement and development of
water distribution network
• Uprating and expanding existing
Water
• Treatment Plant
• Improvement and development of
• house connection distribution
networks.
• Development of Public Hydrant
• Development of Water Treatment
Plant with Tarum Barat water source
• Construction of Simple Water
Treatment Plant utilizing ground and
surface water
Funding sources for the programs are
planned from LG budget, PDAM Tirta
Patriot, commercial banks and
Investor
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PPP Implementation
Purpose & Background
Project Objective
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.
STRENGTH
WEAKNESS
1. High commitments of government of Bekasi City in
providing drinkable water access & supporting PPP project
2. High interest of private sector in water supply management
3. The existence of potential West Tarum Channel which is
near the coverage area and having sufficient quantity,
quality, and continuity
4. The existence of local regulation of groundwater
management
1. Insufficient fiscal capacity of Bekasi City government
2. Limited capacity of PDAM Tirta Patriot in investment
PPP
OPPORTUNITY
1. Low coverage of pipelined water supply
2. High population growth (3.75% - 4%)
3. Rapid development of housing, apartment,
commercial activities
4. Strong support from Central Government
and
THREAT
1. High consumption of groundwater as water source
2. Negative perception against pipelined water supply system
CLEAN WATER
ACCESS FOR PEOPLE
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PPP Implementation
Market Demand and Challenges
Economic and Social Benefit
• Open jobs during construction.
• Time saving in fetching water, thus time can be used to
perform more productive activities.
• 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.
• The reduction of poverty.
• Communities have cheaper drinking water source
alternative.
• More comfortable public facilities because of the
availability of clean water.
• Behavior change in more frugal water usage
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Project Implementation
Technical Aspect
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Project Implementation
Technical Aspect
Considerations
• The activities are carried out in areas that do not have a
network system yet (green field).
• The scheme is in accordance with the principle of
partnership as stated in Presidential Decree No. 38/2015.
• Clarity in the division of non-revenue water risk.
• Accommodate the Draft of Government Regulation (RPP)
of Water Supply System which is being developed.
TOTAL INVESTMENT
CONSTANT (2015) : IDR 339.5 BILLION
APPLIED
: IDR 368.8 BILLION
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Project Implementation
Risks
I. LOCATION
II. DESIGN, CONSTRUCTION,
COMMISIONING
1. Land acquisition
2. Raw water source permit
1. Design brief risk
2. Pipe alignment in concrete road
3. Delayed construction due to permit
1.
2.
3.
1.
2.
3.
4.
5.
6.
7.
Fail to achieve financial close
Interest rate changing
Inflation
Increase O&M cost
Not optimum operational system
Decrease water source liability
Decrease water production capacity
Low produced water absorption
Water loss
Fault in water meter reading
V. REVENUE
1.
2.
3.
4.
5.
Failed in tariff determination
Periodic tariff adjustment
Improper consumer classification
Increase water demand
Decrease water demand
VI. POLITICS
1. Changing national politic direction against economic policies
2. Termination of partnership
3. Risk of expropriation
III. FINANCE
IV. OPERASIONAL
RISKS
VII. FORCE MAJEURE
VIII. ASSET MANAGEMENT
1. Risk of politic force majeure
2. Risk of natural disaster
1. Damage to assets not due to natural disasters
2. The risk of asset quality during the handover
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Project Implementation
Procurement Plan
Procurement processes will be conducted base on Peraturan Presiden Nomor 38/2015 regarding Public – Private
Partnership in Infrastructure Provision & Perka LKPP No. 19/2015 regarding Guideline in Enterprise Procurement for
Public-Private Partnership in Infrastructure Provision.
PRINCIPAL: Effective, Efficient, Transparent,
Competitive, and Accountable
No
ACTIVITY
DATE
1 Announcement and Request for EoI
TBD
Submission the RFQ to the parties
2 expressed interest
TBD
3 Clarification and Investor meetings
TBD
Final date for Submission of SOQ (PQ
4 Submission)
TBD
5 PQ Evaluation
TBD
6 Shortlist
TBD
7 Objection Period
TBD
8 Objection Respond Period
TBD
9 Shortlist Announcement
TBD
Bagian Kerjasama dan Investasi/ KSI
Sekretariat Daerah Kota Bekasi
Jl. Ahmad Yani No.1, Bekasi
Jawa Barat, Indonesia
Phone: +62 021 88961767
Fax: +62 021 88959980
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ACTIVITY
Invite the prequalified Applicant and Issues of Request for Proposal
(RFP)
Pre Bid Meeting/Aanwizjing/SiteVisit/One on One Meeting
Clarification Period :
> Bidder written comment on RFP and draft of Concession Agreement
> Meeting on above comment
Final RFP and draft of Concession Agreement
Proposal Submission
Technical Proposal Opening and Evaluation
Announcement of Technical Evaluation Report
Tariff Proposal Opening and Evaluation TBD
Written Request of Clarification
Tariff Proposal Evaluation Report
Completion of tendering process and submission of final ranking
Objection and response Period
> Latest date of Objection submission
> Response
Issuance of Letter Award TBD
Signing of Concession Agreement
Financial Closing, not later than
Project commercial operation date
DATE
TBD
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TBD = To Be Determined
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