Project Description

Client: Indonesia Infrastructure Initiative (IndII) Location: Jakarta, Bali, Yogyakarta, Riau, Central java, Bengkulu

The Challenges

With ongoing urbanisation and industrialisation there is pressure building on local government-owned water utilities (PDAM) to cater for an increasing demand of piped water supplies. In recent years, the overall service coverage of PDAMs has, in fact, dropped because population growth has outpaced the expansion capacities of most of the PDAMs. Contributing factors are raw water scarcity, particularly during prolonged dry seasons, and increasing marginal costs for the development for new raw water sources. Moreover, most of the PDAMs have exploited their nearby accessible water sources and need to expand now to more remote raw water locations. This, access to sufficient raw water, at reasonable cost and acceptable quality, is becoming an increasingly decisive matter for sustaining future PDAM operations and service deliveries. For addressing these enormous challenges, the DGHS is promoting economies of scale by supporting and assisting in financing the development of regional water systems. The objective of the study was to review the progress and status of the five Regional SPAMs already in operation.

Actual Services provided:
• Review of the overall development status and progress including the institutional set-up, the contractual framework, the commercial arrangements and the technical performance of each
• The documentation of the findings in reports including the formulation of recommendations and identification of potential efficiency gains and potential for follow-up studies. The dissemination of the findings and recommendations to key stakeholders, including Bappenas, Directorate General of Human Settlements, Directorate General of Water Resources, Ministry of Home Affairs, Ministry of Finance and IndII/DFAT