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% 2
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 3
Project Objective PPP Implementation Purpose & Background 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 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 OPPORTUNITY 1. Low coverage of pipelined water supply 2. High population growth (3.75% - 4%) 3. Rapid development of housing, apartment, and commercial activities 4. Strong support from CentralGovernment PPP WEAKNESS 1. Insufficient fiscal capacity of Bekasi City government 2. Limited capacity of PDAM Tirta Patriot in investment THREAT 1. High consumption of groundwater as water source 2. Negative perception against pipelined water supply system CLEAN WATER ACCESS FOR PEOPLE 4
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 5
Project Implementation Technical Aspect 6
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 7
I. LOCATION Project Implementation Risks 1. Land acquisition 2. Raw water source permit RISKS II. DESIGN, CONSTRUCTION, COMMISIONING III. FINANCE IV. OPERASIONAL V. REVENUE VI. POLITICS VII. FORCE MAJEURE 1. Design brief risk 2. Pipe alignment in concrete road 3. Delayed construction due to permit 1. Fail to achieve financial close 2. Interest rate changing 3. Inflation 1. Increase O&M cost 2. Not optimum operational system 3. Decrease water source liability 4. Decrease water production capacity 5. Low produced water absorption 6. Water loss 7. Fault in water meter reading 1. Failed in tariff determination 2. Periodic tariff adjustment 3. Improper consumer classification 4. Increase water demand 5. Decrease water demand 1. Changing national politic direction against economic policies 2. Termination of partnership 3. Risk of expropriation 1. Risk of politic force majeure 2. Risk of natural disaster VIII. ASSET MANAGEMENT 1. Damage to assets not due to natural disasters 2. The risk of asset quality during the handover 8
Project Implementation Procurement Plan Procurement processes will be conducted base on Peraturan Presiden Nomor 38/2015 regarding Public Private Partnership in InfrastructureProvision & Perka LKPP No. 19/2015 regarding Guideline in Enterprise Procurement for Public-PrivatePartnership in InfrastructureProvision. PRINCIPAL: Effective, Efficient, Transparent, Competitive, and Accountable No ACTIVITY DATE 1 Announcement and Request for EoI TBD 2 Submission the RFQ to the parties expressed interest TBD 3 Clarification and Investor meetings TBD 4 Final date for Submission of SOQ (PQ 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. AhmadYani No.1, Bekasi JawaBarat, Indonesia Phone: +62 021 88961767 Fax: +62 021 88959980 No ACTIVITY DATE 1 Invite the prequalified Applicant and Issues of Request for Proposal (RFP) TBD 2 Pre Bid Meeting/Aanwizjing/SiteVisit/One on One Meeting TBD 3 Clarification Period : > Bidder written comment on RFP and draft of Concession Agreement > Meeting on above comment TBD 4 Final RFP and draft of Concession Agreement TBD 5 Proposal Submission TBD 6 Technical Proposal Opening and Evaluation TBD 7 Announcement of Technical Evaluation Report TBD 8 Tariff Proposal Opening and Evaluation TBD TBD 9 Written Request of Clarification TBD 10 Tariff Proposal Evaluation Report TBD 11 Completion of tendering process and submission of final ranking TBD Objection and response Period > Latest date of Objection submission 12 > Response TBD 13 Issuance of Letter Award TBD TBD 14 Signing of Concession Agreement TBD 15 Financial Closing, not later than TBD 16 Project commercial operation date TBD TBD = To Be Determined 9