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TitlePPP BOOK 2013
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REPUBLIC OF INDONESIA
MINISTRY OF NATIONAL DEVELOPMENT PLANNING/

NATIONAL DEVELOPMENT PLANNING AGENCY

PUBLIC PRIVATE PARTNERSHIPS
INFRASTRUCTURE PROJECTS PLAN IN INDONESIA

2013

Jakarta, November 2013

Page 59

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PUBLIC PRIVATE PARTNERSHIPS
INFRASTRUCTURE PROJECTS PLAN IN INDONESIA

34

3. Procurement approach

This Project is being procured as a PPP in compliance with the Presidential Regulation (PR) 67/2005 on
Cooperation between Government and Business Entity in Infrastructure Provision (as amended by PR
13/2010, PR 56/2011 and PR 66/2013) as well as prevailing Indonesian law.

4. Private Partner’s role

Private partner shall be responsible to finance, construct, operate, and maintain the infrastructure assets
starting from the WTP and the main reservoir, the raw water transmission network, construction of the sub-
district reservoirs, distribution of water to PDAM reservoirs as arranged in the BOT contract over the agreed
contract period.

5. economic significance of project location

The project preparation document indicates several economic significances of the project. The economic
benefits of the project are: improvement of commercial and industrial activities in the area; improvement
of the quality of life of household; and increase of piped drinking water supply systems coverage. Thus the
Social Cost Benefit Analysis (SCBA) should be provided in subsequent studies.

6. Project structure

Estimated project cost US$ 20.00 million
Indicative debt to equity ratio 60 : 40
Debt level US$ 12.00 million
Equity level US$ 8.00 million

7. government support and government guarantee

The project preparation document has indicated that the project may require government support to increase
the financial viability of the project. The Government of Bekasi Municipal will support the project in form
of land acquisition, detail engineering design, and AMDAL UKL/UPL preparation. The project may need
government guarantee to mitigate the project’s risks from changes in demand risk and shifts in political
scenario. The OBC has indicated the necessity for Government Guarantee and the Government of Bekasi
Municipal plans to submit guarantee application.

8. Project technical Profile

The technical specifications for Pondok Gede Water Supply are as follow:
Water intakes with total capacity 300 l/s.

Water transmission
Water treatment plant with capacity of 300 l/s
Reservoir with capacity 7000 m3
Distribution pipelines for 61 km
House connections for 30,000 consumers

9. initial environmental examination Findings

The project is classified to require an Environmental Impact Assessment (EIA), Environmental Management
Plan and Public Consultation. Initial environmental investigations have indicated that the project should not
face any significant problems from an environmental view point. Thus study relates with the environmental
assessment impact will be provided in subsequent studies.

Pondok gede water supply, bekasi, west java

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