PPP OPPORTUNITIES OF WATER SUPPLY PROJECTS IN INDONESIA
Presented by:Tamin M. Zakaria AminChairman of BPPSPAM
National Supporting Agency for Water Supply System Development Ministry of Public Works and Housing
Republic of Indonesia
Singapore, October 2015
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 PPP Scheme:• On Going Projects
• Tender Process
• Ready to Offer
• Potential
2
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.
WATER SUPPLY SERVICES IN INDONESIA
4
Served by Local Water Supply Companies called Perusahaan Daerah Air Minum (PDAM) (safe access, piped)
There are total 387 PDAMs in Indonesia and 39 operators are from private sectors.
Existing house connection provided by PDAM is about 11 million HC in 2015.
67.78% is served by safe water access (2013)
Average NRW level is 32,79%
74% of the PDAMs operate below production cost (non FCR tariff)
2012 (328PDAM)
2013 (350PDAM)
2014 (359PDAM)
2015 (369PDAM)
171 176182
196
101 104 10396
5670 74 78
PERFORMANCE OF PDAM 2012 - 2015
SEHAT KURANG SEHAT SAKIT
52%
31%
17%
50%
30%
20%
51%
29%
20%
53%
26%
21%
HEALTHY LESS HEALTHY SICK
(370
Sources: BPPSPAM, 2015
NATIONAL ACCESS TO SAFE WATER
5
As stipulated in National Medium Term Dev. Plan 2015-2019, safe access to drinking water in 2019 is targeted to be 100% (60 % by pipeline, 40 % by non pipeline )
22.4
25.3
59.7
47.9 48.4
41.4 29.7
26
0
70.3 73.7
78.8 85.1
92.6
100
0
20
40
60
80
100
2014 2015 2016 2017 2018 2019
Wat
er
Sup
ply
co
vera
ge (
%) Aman - Perpipaan
Aman - BukanPerpipaan
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%
NationalBudget
Raw WaterBudget
PPP
Bank Loan
CSR
Local Budget
Sources: Directorate General of Human Settlements, Ministry of Public Works and Housing, 2015
6
FUNDING NEEDEDTO REACH NATIONAL TARGET
IDR 204.93 Trillion
IDR 48.07 Trillion
Other Source ofFunding
National Budget
Total Funding Required (2015 – 2019) = IDR 253 Trillion
Sources: Directorate General of Human Settlements, Ministry of Public Works and Housing, 2015
6 BASIC PRINCIPLES FOR WATER RESOURCE MANAGEMENT RESTRICTION
1. Water resource provision could not disrupt human right to get water resource access;
2. Human right for water resource should be fulfilled by government;
3. Environmental Sustainability;
4. Government has responsibility to monitor and control water resource;
5. Main priority of water resource provision is delegated to SOE/ROE; and
6. Government has a possibility to give license for business entity to conduct water resource provision based on tight requirement.
*AS STATED IN CONSTITUTIONAL COURT DECISION No. 85/PUU-XI/2013
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 CA
in 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 and
agreed 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
PPP STRUCTURE FOR INDONESIAN WATER SUPPLY PROJECT
10
Government Contracting
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 of Director of SOE / ROE
11
PPP PROJECT CYCLE
Tender document process and bidding
team
Identification
PPP business
case
Pre FS
Project Preparation Transaction Process and Management
Tender document
Pre Qualification
Shortlisted
Bidding process
WinningBidder
Contract
Financial Close & Contract
implementation
End of Contract
Bidder invitation &Tender Doc
Aanwizjing &One on One Meeting
PPP nodes
12
WATER SUPPLY INVESTMENT PLAN
THROUGH PPP SCHEME
N
o
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
PPP Cooperation Between Local Government of Tangerang Regency 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 PPP PROJECT
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%
BEKASI REGENCY PT MOYA BEKASI JAYA
Progress of the ProjectStage I of WTP Uprating has been constructed and ultrafiltration unit of 200 l/s has been commercially
operated with tariff Rp 2.150,-
Service Area
Cikarang Utara sub-district, Cikarang Selatan sub district and Lemah Abang sub district
14
ON GOING PPP PROJECT
B to B Cooperation Agreement between
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
Technical and Investment Data
Capacity : 1.000 l/s
Total Investment : Rp 187 Billion
Cooperation Period : 25 Years
Initial tariff: Rp. 2.150
15
GRESIK REGENCYPT. DEWATA BANGUN TIRTA
Technical and Investment Data
Capacity : 200 l/s
Total Investment :Rp 47,5 Billion
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
Progress of the Project
Physical construction has been 100% finished and has been commercially operated 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 PPP PROJECT
16
ON GOING PPP PROJECT
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 AreaLandasan Ulin, Liang Anggang, Gambut, Kertak Hanyar, Tatah Makmur,
Aluh-aluh, Beruntung Baru, Sungai Tabuk
Progress of the Project
• WTP Construction of 2 x 250 l/s, supplementarybuilding
• WTP has been commercially operated for 150 l/s• Tariff: Rp 2.098,- /m3
Technical and Investment Data
Capacity : 500 l/s
Total Investment : Rp 71,501 billion
Cooperation period : 25 Years
Bulk water priceRp. 2.098,-
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 Lampung
500 42.000 210.000 718
TOTAL 4.500 362.000 1.510.000 2.830
18
Technical and Investment Data
PPP Scheme: BOT (Built Operate Transfer)Capacity:4.000 liter/detikInvestment Estimate:Rp 2.112.090.210.000Utilization:1,3 million population or 320.000 HCScope of Works:Construction of Intake 4.000 l/sProcurement and raw water transmission installation ND 1000-1800mm for 97 kmConstruction of 2 Pump houses 4000 L/s with its supplementary equipmentOfftake system : 16 offtake units and reservoir 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 Sakti3. Consortium of Kukdong Eng. & Const. Co. Ltd., PT Brantas Abipraya, PT Grundfos Pompa, PT Pralon4. Consortium of PT Amerta Bumi Capital, PT Bakrieland Development Tbk., Beijing Enterprise Water Group5. Consortium of PT Medco – PT Bangun Cipta Kontraktor
PPP Cooperation
SPAM Umbulan 4000 L/s- GCA : Governor of East Java- Offtaker:1. PDAB Jawa Timur: 100 L/s2. PDAM Kab. Pasuruan: 420 L/s3. PDAM Kota Pasuruan: 110 L/s4. PDAM Kab. Sidoarjo: 1370 L/s5. PDAM Kota Surabaya: 1000 L/s6. 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
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
Tender Process
BANDAR LAMPUNG WATER SUPPLY PROJECT
Technical and Investment Data
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 Tbk2. Acuatico and Mitsubishi Corporation 3. Hyundai Engineering and Construction, Itochu Corporation and PT Potum Mundi Infranusantara4. 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
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 initialconsortium
23 November 2015
(E) Closing of proposal document 22 December 2015
(F) Opening of Proposal documents (Envelope I)and commencement of preliminary study ofEnvelope I as stipulated on article 3.16 and 7.3
23 December 2015
(G) Opening of Proposal Documents (Envelope II)and commencement of proposal documentevaluation (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
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
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
Medan Satria
BekasiUtara
BekasiTimur
BekasiBarat
BekasiSelatan
Rawa Lumbu
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 businesses
4. High commitment from the Central Government
Project Location
Service Area
Pondok Gede, Jati Asih of Bekasi City
25
PONDOK GEDE WATER SUPPLY PROJECT 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
PONDOK GEDE WATER SUPPLY PROJECT BEKASI CITY, WEST JAVA
No 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
PDAM GRESIK REGENCY
Scope of Works1. Construction of intake 2200 L/s2. Construction of WTP 2 x 1000 l/s with its supplementary
building3. Procurement and installation of ME4. Procurement and installation of primary, secondary, and
tertiary distribution pipelines
Technical and Investment Data
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 Document Capacity Building on November 2015Completion of tender documents
Gerak Sembayat Dam
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
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, CentralJava
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
WEST SEMARANG MUNICIPALITY WATER PROJECT, CENTRAL JAVA
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
Transmission pipeline
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
WEST SEMARANG MUNICIPALITY WATER PROJECT, CENTRAL JAVA
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
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
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
JATIGEDE WATER SUPPLY PROJECT
Status Update- Jatigede dam has been completed, water filling is being done and targeted to be finished
on 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 : 1.600 mm, 7.150 m.
- Investment Rp 1.504 billion
Service Area
- Sumedang Regency- Majalengka Regency- Indramayu Regency- Cirebon Regency- Cirebon Municipality
35
KARIAN WATER SUPPLY PROJECT
Status Update
- Waiting for the dam construction to be finished, construction is planned to be completed in 2019
Scope of Works
- WTP: 6.000 L/s Transmission 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
Ciu
yah
Tun
nel
9.1
Ciu
jung
Riv
er
(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
Kata Tangeran
g
Kota Tangesel
W. Jakarta
36
TERIMA KASIHTHANK YOU
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Tamin M. Zakaria Amin, MSc, MBAChairman of BPPSPAMJl. Wijaya I No.68 Kebayoran Baru, Jakarta Selatan, Indonesia
Phone : +6221 72789126Fax : +6221 7260520Email : [email protected]