PPP Water Di Indonesia

8/20/2019 PPP Water Di Indonesia

1/36

PPP OPPORTUNITIES OF WATER

SUPPLY PROJECTS IN INDONESIA

Presented by:

Tamin M Zakaria Amin

Chairman of BPPSPAM

National Supporting Agency for Water Supply System Development

Ministry of Public Works and Housing

Republic of Indonesia

Singapore, October 2015


2/36

OUTLINE

• Preface

• Water Supply Services In Indonesia

• National Access to Safe Water

• 6 Basic Principles for Water Resource

Management Restriction

• Water Supply Investment Plan Through PPPScheme:•

On Going Projects• Tender Process

• Ready to Offer

• Potential

2


3/36

3

INDONESIA AT A GLANCE

According to World Bank (2010), the annual growth rate of Indonesia is 1,21%. In 2019, the

population of Indonesia is estimated to be 268.074.600. Assuming each household consists of 4

people (BPS, 2013). Government of Indonesia is expected to provide 100% access to safe water

by the end of 2019.


4/36

WATER SUPPLY SERVICES IN INDONESIA

4

Served by Local Water SupplyCompanies called PerusahaanDaerah Air Minum (PDAM) (safeaccess, piped)

There are total 387 PDAMs in

Indonesia and 39 operators arefrom private sectors.

Existing house connectionprovided by PDAM is about 11million HC in 2015.

67.78% is served by safe water

access (2013) Average NRW level is 32,79%

74% of the PDAMs operatebelow production cost (nonFCR tariff)

2012 (328

PDAM)

2013 (350

PDAM)

2014 (359

PDAM)

2015 (369

PDAM)

171 176182

196

101 104 103 96

5670 74

78

PERFORMANCE OF PDAM 2012 - 2015SEHAT KURANG SEHAT SAKIT

52%

31%

17%

50%

30%

20%

51%

29%

20%

53%

26%

21%

HEALTHY LESS HEALTHY SICK

(370

Sources: BPPSPAM, 2015


5/36

NATIONAL ACCESS TO SAFE WATER

5

As stipulated in National Medium Term Dev. Plan 2015-2019, safeaccess to drinking water in 2019 is targeted to be 100% (60 % bypipeline, 40 % by non pipeline )

22.4

25.3

59.7

47.9 48.4

41.429.7

26

0

70.373.7

78.8

85.1

92.6

100

0

20

40

60

80

100

2014 2015 2016 2017 2018 2019

W a t e r S u p p l y c o v e r a g e ( % ) Aman - Perpipaan

Aman - Bukan

Perpipaan

Tidak Aman

Aman

Safe access,

piped

Safe access,

non piped

Unsafe access

Safe access to

drinking

water

13%

6%

8%

4%

7%47%

7%

6%

National

Budget

Raw WaterBudget

PPP

Bank Loan

CSR

Local Budget

Sources: Directorate General of Human Settlements,

Ministry of Public Works and Housing, 2015


6/36

6

FUNDING NEEDED

TO REACH NATIONAL TARGET

IDR 204.93

Trillion

IDR 48.07

Trillion Other Source of Funding

National Budget

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

Sources: Directorate General of Human Settlements,

Ministry of Public Works and Housing, 2015


7/36

6 BASIC PRINCIPLES FOR WATER RESOURCE

MANAGEMENT RESTRICTION

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

2. Human right for water resource should be fulfilled bygovernment;

3. Environmental Sustainability;

4. Government has responsibility to monitor and control waterresource;

5. Main priority of water resource provision is delegated toSOE/ROE; and

6. Government has a possibility to give license for businessentity to conduct water resource provision based on tightrequirement.

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


8/36

SUBJECT ON PPP

Contracting Agency

• Minister/ Head of Institution/ Head of Region or

any other party that has been delegated to act

on behalf of the Ministry/Institution/Region

•

Board of Director of SOE / ROE could act as CAin accordance with the existing law and

regulation

• Project bundling is allowed, in which the

Minister/ Head of Institution/ Head of Region

will act together as the CA by signing a MoU andagreed 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 - 8

Based on Presidential Regulation No.38 /2015 on PPP


9/36

GOVERNMENT SUPPORT

• Land

Acquisition

• Viability

Gap Fund

(VGF)

• Guarantee

• Raw Water

Facilities


10/36

PPP STRUCTURE FOR INDONESIANWATER SUPPLY PROJECT

10

GovernmentContracting

Agency

Special Purpose

Vehicle (SPV)

IIGF

(Govt.Guarantee)

O&M Co, EPC Co,

Third parties

Sponsors/

Investors

Cooperation Agreement

Contract

Recourse Agreement

Guarantee Agreement

Banks

End

User/Customer

Service

Tariff

Equity

Debt

Board ofDirector of

SOE / ROE


11/36

11

PPP PROJECT CYCLE

Tender documentprocess and bidding

team

Identification

PPP

business

case

Pre FS

Project Preparation Transaction Process and Management

Tender document

Pre Qualification

Shortlisted

Bidding process

Winning

Bidder

Contract

Financial Close &

Contract

implementation

End of Contract

Bidder invitation &

Tender Doc

Aanwizjing &

One on One Meeting

PPP

nodes


12/36

12

WATER SUPPLY INVESTMENT PLAN

THROUGH PPP SCHEME

No

Amount of

Project

Location

Capacity (l/s) Population served(persons)

Total Investment

(Billion Rupiah)

1 ON GOING PROJECT

4 2.600 1.040.000 895

2 TENDER PROCESS

2 4.500 1.510.000 2.830

3 READY TO OFFER

2 2.300 920.000 1.649,5

4 POTENTIAL

5 12.648 5.160.000 7.401,3

TOTAL

13 22.048 8.630.000 12.775,8


13/36

13

PPP Cooperation Between Local Government of TangerangRegency and PT. Aetra Air Tangerang

Contract Signing: 4 August 2008

Scope of Works

• Construction of WTP 900 l/s

• Construction of transmission networks

• Construction of reservoir

• Distribution networks for 70.000 HC

• Pipe networks± 180 km

TANGERANG REGENCYPT AETRA AIR TANGERANG

Service Area

Pasar Kemis, Sepatan, Cikupa, Balaraja, Jayanti, Total of Domestic

Customers 60.000 HC and Industries 278 HC

NRW Level 4%

ON GOING PPPPROJECT

Technical and Investment Data

1. Capacity 900 l/s

2. Investment Rp 503 Billion

Investment today Rp 589 Billion

3. Operational 2010

4. Concession period 25 years

5. Domestic Water Tariff

(2007)

Rp 3.400,-

6. Non Domestic water tariff

(2007)

Rp 10.000,-

7. Tariff escalation (2008-

2009)

7,20%


14/36

BEKASI REGENCY

PT MOYA BEKASI JAYA

Progress of the Project

Stage I of WTP Uprating has been constructed andultrafiltration unit of 200 l/s has been commercially

operated with tariff Rp 2.150,-

Service Area

Cikarang Utara sub-district, Cikarang Selatan subdistrict and Lemah Abang sub district

14

ON GOING PPPPROJECT

B to B Cooperation Agreementbetween

PDAM Bekasi Regency with

PT. Moya Bekasi Jaya

Contract signing: 18 August 2011

Scope of Works

• Stage 1 : Uprating: 2x 20 l/s uprated to be

1x120 l/s 2x20 l/s uprated to be

1x120 l/s Ultrafiltration (UF) 200 l/s

• Stage II WTP construction of500 l/s

• Stage III Rehabilitation andOperating existing WTP:WTP 2X 60 l/sWTP 1x 200 l/s


Capacity : 1.000 l/s

TotalInvestment : Rp 187 Billion

CooperationPeriod : 25 Years

Initial tariff: Rp. 2.150


15/3615

GRESIK REGENCYPT. DEWATA BANGUN TIRTA


Capacity : 200 l/s

Total Investment :Rp 47,5Billion

Cooperation period : 25 years

Tariff escalation : 7% annually

Bulk water price year 1 :Rp. 2.400

Bulk water price year 2 :Rp. 2.568

PPP Cooperation Agreement between

PDAM Gresik Regency and

PT. Dewata Bangun Tirta

Contract Signing : 25 May 2012


Physical construction has been 100% finished and has been commerciallyoperated in 2014 with tariff Rp 2400,-/m³

Scope of Works

Intake construction 200 l/s

WTP Construction 200 l/s

Resevoir 1.000 m³

Transmission pipeline with diameter of

500mm – 5500 m and Booster pump 700 l/s

ON GOING PPPPROJECT


16/36

16

ON GOING PPPPROJECT

B to B Cooperation Agreement between

PDAM Intan Banjar with PT. Drupadi Agung Lestari

Contract Signing : 4 October 2012

BANJAR REGENCY AND BANJARBARU MUNICIPALITY

(PDAM INTAN BANJAR)

PT. DRUPADI AGUNG LESTARI

Scope of Works

• WTP Construction 2 x 250 l/s

• Reservoir 4.000 m³ and Distribution pump chamber

• Supplementary building

Service Area

Landasan Ulin, Liang Anggang, Gambut, Kertak Hanyar, Tatah Makmur,Aluh-aluh, Beruntung Baru, Sungai Tabuk


• WTP Construction of 2 x 250 l/s, supplementarybuilding

• WTP has been commercially operated for 150 l/s• Tariff: Rp 2.098,- /m3


Capacity : 500 l/s

Total Investment : Rp 71,501 billion

Cooperation period : 25 Years

Bulk water priceRp. 2.098,-


17/36

17

PPP PROJECTS IN TENDER PROCESS

No ProjectCapacity

(l/s)

House

Connection

Population

served

(persons)

Total

Investment

(Billion

Rupiah)

1 PPP Project –

Umbulan East

Java

4.000 320.000 1.300.000 2.112

2 PPP Project –

Bandar Lampung500 42.000 210.000 718

TOTAL 4.500 362.000 1.510.000 2.830


18/36

18


PPP Scheme:

BOT (Built Operate Transfer)

Capacity:4.000 liter/detik

Investment Estimate:

Rp 2.112.090.210.000

Utilization:

1,3 million population or 320.000 HC

Scope of Works:

Construction of Intake 4.000 l/s

Procurement and raw water

transmission installation ND 1000-1800mm for 97 km

Construction of 2 Pump houses 4000

L/s with its supplementary equipment

Offtake system : 16 offtake units andreservoir in 5 Cities/Regencies

5 Shortlisted Bidders:

1. Consortium of Marubeni Corp., Nippon

Koei Co. Ltd., PT Perkom Indah Murni2. Consortium of China Harbour ENG. Co.

Ltd., Sound Global Ltd., & PT Manggala

Purnama Sakti

3. Consortium of Kukdong Eng. & Const.

Co. Ltd., PT Brantas Abipraya, PT Grundfos

Pompa, PT Pralon

4. Consortium of PT Amerta Bumi Capital,

PT Bakrieland Development Tbk., Beijing

Enterprise Water Group

5. Consortium of PT Medco – PT BangunCipta Kontraktor

PPP Cooperation

SPAM Umbulan 4000 L/s

- GCA : Governor of East Java

- Offtaker:

1. PDAB Jawa Timur: 100 L/s

2. PDAM Kab. Pasuruan: 420 L/s

3. PDAM Kota Pasuruan: 110 L/s

4. PDAM Kab. Sidoarjo: 1370 L/s

5. PDAM Kota Surabaya: 1000 L/s

6. PDAM Kab. Gresik: 1000 L/s

Tender Process

Project Location

Kab. Pasuruan, Kota Pasuruan, Kab.Sidoarjo, Kota Surabaya, Kab. Gresik

UMBULAN WATER SUPPLY PROJECTEAST JAVA


19/36

19

Tender Stages Date

(A) Publication of Final Request of Proposal (RFP) 30 September 2015

(B) Deadline of Proposal submission 13 November 2015

(C) Confirmation of Bidder Winner 31 December 2015

(D) Signing of Contract Agreement February 2016

(E) Financial Close December 2016

(F) Construction Period December 2016 – December 2018

(G) Commercial Operation December 2018

(H) Concession Period 25 years commenced from

commercial operation

Schedule of Tender Process

UMBULAN WATER SUPPLY PROJECTEAST JAVA


20/36

20

Tender Process

BANDAR LAMPUNG WATER SUPPLY PROJECT


PPP Modality:BOT + (Built Operate Transfer +)

Capacity:

500 l/s

-Investment Estimate: Rp 718 Billion

- Cooperation Period : 25 years

- Bulk water tariff : Rp 3.000 (2015)

Utilization :

42.000 HC

Scope of Works:

• Construction of intake 500 L/s

• Procurement and Installation of

raw water transmission pipe ND 800

mm for 27 km• Construction of 2 WTPs @ 250 L/s

with its supplementary equipment

Short Listed Bidders:

1. Abeima and PT Wijaya Karya Persero Tbk

2. Acuatico and Mitsubishi Corporation

3. Hyundai Engineering and Construction,Itochu Corporation and PT Potum Mundi

Infranusantara

4. Manila Water and Great Giant Pineapple

PPP Cooperation

SPAM Bandar Lampung 500 l/s

- GCA : Mayor of Bandar Lampung

Project Status:

• Announcement of shortlisted bidders: 31 May 2012

•Submission of Guarantee Application Document (GAP): 16 Agustus 2012

• VGF Approval by Ministry of Finance has been issued on 7 May 2015

• One on one meeting conducted on 1 September 2015

• Final RFP issued on 15 September 2015


21/36

21

Tender Stages Date

(A) Publication of Final RFP 15 September 2015

(B) Aanwijzing 15 October 2015

(C) Preliminary Process : Room Data Opening 15 September 2015 – 31 October 2015

(D) Last date to submit the date to form initial

consortium

23 November 2015

(E) Closing of proposal document 22 December 2015

(F) Opening of Proposal documents (Envelope I)

and commencement of preliminary study of

Envelope I as stipulated on article 3.16 and 7.3

23 December 2015

(G) Opening of Proposal Documents (Envelope II)and commencement of proposal document

evaluation (technical and financial evaluation)

1 February 2016

(H) Announcement of Preferred Bidders 12 February 2016

Schedule of Tender Process

BANDAR LAMPUNG WATER SUPPLY PROJECT


22/36

22

STATUS UPDATE

• VGF Approval for PPP Project of SPAM Umbulan has been granted by the Ministry of Finance

by letter of Minister of Finance number S-759/MK.08/2015 dated 29 September 2015

concerning Approval of Viability Gap Fund

• Tender process has been commenced for PPP Project of SPAM Umbulan through the

issuance of Final Request for Proposal (RFP) on 30 September 2015

• VGF Approval for PPP Project of SPAM Bandar Lampung has been granted by the Ministry of

Finance by letter of Minister of Finance number S-362/MK.08/2015 dated 7 May 2015

concerning Approval of Viability Gap Fund

• Tender process has been also commenced for PPP Project of SPAM Bandar Lampung through

the issuance of Final Request for Proposal (RFP) on 15 September 2015

TENDER PROCESS UPDATE


23/36

23

READY TO OFFER

PPP WATER SUPPLY PROJECTS

No ProjectCapacity

(l/s)

House

Connection

Population

served

(persons)

Total

Investment

(Billion

Rupiah)

Land

Acquisition

1 Pondok Gede,

Bekasi City,West Java

300 24.000 120.000 285,5 100%

2 Gresik Regency 2.000 160.000 800.000 1.364,0 Under Process

TOTAL 2.300 184.000 920.000 1.649,5


24/36

24

MedanSatria

BekasiUtara

BekasiTimur

BekasiBarat

BekasiSelatan

RawaLumbu

Mustikajaya

BantarGebang

Jati Asih

PondokGede

PondokMelati

JatiSampurna

PONDOK GEDE WATER SUPPLY PROJECT

BEKASI CITY, WEST JAVA

Background of the Project:

1. High population growth

of Bekasi city ( 3% per

year). Bekasi city is a

prominent satellite city

of Jakarta.2. Service coverage is only

21% in 2013

3. Rapid growth of

housings, apartment,

and commercial

businesses4. High commitment from

the Central

Government

Project Location

Service Area

Pondok Gede, Jati Asih of Bekasi City


25/36

25


BEKASI CITY, WEST JAVA

Project Scope

- WTP, capacity: 300 L/s

- Reservoir: 3000 m3

- Distribution pipeline 40 km

- Estimated Investment IDR 285,5 billion


26/36

26


BEKASI CITY, WEST JAVANo Document Preparation Progress

1 Readiness Report Completed

2 Pre FS review Ongoing

a. Legal Study Ongoing

b. Technical Study Raw water study has not

finished

c. Market Study Pre-Survey RDS

d. Economical Study Ongoing

e. Financial Study Ongoing

f. Risk Study Ongoing

g. PPP Scheme recommendation Completed

h. Environmental and Social Studies Completed

i. Government Support Study Ongoing

3 ENVIRONMENTAL IMPACT

ASSESSMENT

Completed

4 PQ Document Completed

Type of modality :

Build Operate Transfer

(BOT)

IRR :

15%

Bulk water tariff :

Rp 4.800

GCA :

Mayor of Bekasi City

Timeline Schedule:

Tender: 2016

Contract Signed: 2016Construction: 2017

Operation: 2018


27/36

27

PDAM GRESIK REGENCY

Scope of Works

1. Construction of intake 2200 L/s2. Construction of WTP 2 x 1000 l/s with its supplementary

building

3. Procurement and installation of ME

4. Procurement and installation of primary, secondary, and

tertiary distribution pipelines


Capacity : 2000 l/s

Total Investment : Rp 1.364 Billion

Tariff adjustment : 6% annually

Cooperation period : 25 Years

Schedule :Tender: December 2015Financial Close : 2016

Construction : 2017

Service Area :Gresik Kota and Gresik

Utara (Bungah Sub-district)

Status Update

Completion of Feasibility StudyCompletion of PQ and RFP DocumentCapacity Building on November 2015Completion of tender documents

Gerak Sembayat Dam


28/36

28

POTENTIAL PPP PROJECTS IN WATER SECTOR

No ProjectCapacity

(l/s)

House

Connection

Population

served

(persons)

Total

Investment

(Billion

Rupiah)

1 West Semarang 1.050 84.000 420.000 824,0

2 Serang Regency 280 22.400 112.000 103,3

3 Pekanbaru City 2.070 165.600 828.000 1.950,0

4 SPAM Jatigede 3.500 280.000 1.400.000 1.504,0

5 SPAM Karian 6.000 480.000 2.400.000 3.020,0

TOTAL 12.648 1.032.000 5.160.000 7.401,3


29/36

29

WEST SEMARANG MUNICIPALITY WATER

PROJECT, CENTRAL JAVA

Background of the Project:1. As the capital city of Central Java, Semarang city

has high population growth (3% in 2012)

2. Existing service coverage is 61%

3. High demand of clean water

Service Area

West Part of Semarang City, Central

Java

Type of modality :

Build Operate Transfer (BOT)

Project Type :

Solicited

Capacity :

1.050 l/s

IRR :

15%

Estimated Investment:

Rp 824 billion

Utilization:

420.000 population (84.000 HC)

Tariff:

Rp 4.000,-


30/36

30



Component Proposed design capacity

Intake1,050 L/sec, Jatibarang Dam

(on going project)

Raw water

pipeline 2.2 km (dia. 900mm x 2 line)

WTP 1,050 L/sec, Rapid sand filter

Transmissionpipeline

WTP – Reservoir 5: 3.1 km

(dia. 700mm)

WTP – Reservoir 1: 9.7 km(dia. 450mm)

WTP – Reservoir 2: 2.4 km

(dia. 450mm)


31/36

31



Status Update

• Jatibarang Dam is ready to operate;

• Raw Water Exploitation License has been issued;

• The progress of Land Acquisition is 5%; the rest of the acquisition plan has been

alocated in Local Government Budget;

• VGF has been approved principally by the Minister of Finance; hence waiting for the

VGF recommendation letter and the issuance of VGF approval from the Minister of

Finance;

• Umbrella agreement of the Availability payment in Local Government Budget has not

been strongly stated in the Regulation of the Ministry of Home Affairs No.37/2014


32/36

32

SPAM CIBAJA IN SERANG REGENCY

Raw Water Source

Ciujung River

Scope of Works

- WTP of 280 L/s- Construction of Reservoir- Distribution pipelines- Investment: Rp 103,3 Billion- PPP modality : BOT

Service Area

Serang Timur Subdistrict: Cikande, Kibin, Bandung,and Jawilan (CIBAJA).

Status

- Completion of Feasibility Study- Preparation for tender process


33/36

33

PEKANBARU WATER SUPPLY

Status Update

- Land acquisition will be completed in 2015- GCA will be Government of Pekanbaru Municipal- EIRR of the project : 19,32%

Scope of Works

- WTP: 700 L/s (first stage)- WTP 1370 L/s (second stage)- Intake unit- Raw water Transmission pipeline- Treated water transmission pump and pipeline- Distribution reservoirs (towers)

Timeline Schedule

- Pre Qualification : 2016- Tender process : 2016- Evaluation and award : 2017- Contract signing : 2017


34/36

34

JATIGEDE WATER SUPPLY PROJECT

Status Update

- Jatigede dam has been completed, water filling is being done and targeted to be finishedon mid 2015

- DED of the intake and raw water transmission are being done by West Java Province- Pre FS completion will be done in 2016

Scope of Works

- WTP: 3.500 L/s- Reservoir: 5.000 m3

- Transmission pipeline : 1.600mm, 7.150 m.

- Investment Rp 1.504 billion

Service Area

- Sumedang Regency- Majalengka Regency- Indramayu Regency- Cirebon Regency- Cirebon Municipality


35/36

35

KARIAN WATER SUPPLY PROJECT

Status Update

- Waiting for the damconstruction to be finished,construction is planned to becompleted in 2019

Scope of Works

- WTP: 6.000 L/sTransmission pipeline : 90 km

IMPLEMENTATION PLAN

Tender Process : 2016

Construction : 2016-2019 Operation : 2020

Service Area

Serang, Maja, Rangkasbitung,

Tigaraksa, Kab. Tangerang,Serpong, Parung, dan Jakarta

SERANG & CILEGON

KARIAN (14.6)

Tigaraksa

P.PANJANG

SERPONG

TANGERANG

6.0

2.5

0.2

C i u y

a h T u n n e l

9.1 C i u j u n g R i v e r

(Unit :

/s)

4.0

6.2

R.bitung

Maja 0.1

0.3

1.5

Petir

Pamarayan

Water Treatment Plant

Intake or Tapping Point5.5

1.5

3.2

1.3

KataTangeran

g

KotaTangesel

W.

Jakarta


36/36

36

TERIMA KASIHTHANK YOU

FOR FURTHER INFORMATION,

PLEASE CONTACT:

Mr. Tamin M. Zakaria Amin, MSc, MBA

Chairman of BPPSPAM

Jl. Wijaya I No.68 Kebayoran Baru,

Jakarta Selatan, Indonesia

Phone : +6221 72789126

Fax : +6221 7260520

Email : [email protected]

www bppspam com