BANDUNG, September 13 (EngineeringDaily) -- The Indonesian government is committed to improving the supply of clean water in two of its largest islands. Plans are undergoing to build three clean water projects worth USD 418 million in Java and Sumatra.
The first project on the docket is the Jatiluhur Drinking Water Supply System (SPAM) in West Java Province, designed with a capacity of 5,000 liters/sec and with an investment of USD 145 million. This project will be the first of the three to be implemented, and the necessary documents were signed at the beginning of this month.
Two other projects are the Umbulan SPAM in East Java Province with a capacity of 4,000 liters/sec and a budget of USD 190 million, along with the Bandar Lampung SPAM in Lampung Province with a capacity of 500 liters/sec and a cost of USD 85 million. These two projects are still in the planning stage and will be submitted to the next administration for final approval.
The Jatiluhur SPAM project will be undertaken by a consortium of four companies: PT Wijaya Karya Tbk., Perum Jasa Tirta II, PT Pembangunan Jaya (an enterprise from Jakarta), and PT Tirta Gemah Ripah (an enterprise of West Java). The consortium was given 6 months to complete financial matters and form a new company as their subsidiary. Meanwhile, the government through the Ministry of Public Works will act as a regulator.
The project financing scheme involves using 30% equity and 70% bank loan. The clean water consumer is the Regional Water Company (PDAM) with a business to business (B-to-B) scheme. Once the projects are completed, as much as 4,000 liters/sec of clean water will be channeled to Jakarta, while the rest will be distributed to the Bekasi and Karawang Regencies
By Isamail Al Anshori
