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Water infrastructure needs IDR48 trillion

JAKARTA: The need for investment from the private sector for construction of drink water infrastructure in the next four months is estimated to reach IDR48 trillion or IDR12 trillion per annum.The drink water infrastructure with such investment is expected

JAKARTA: The need for investment from the private sector for construction of drink water infrastructure in the next four months is estimated to reach IDR48 trillion or IDR12 trillion per annum.The drink water infrastructure with such investment is expected to accommodate 68.8% of the countrys drink water necessity.At least five water infrastructure projects are ready for bidding, Head of the Water Supply System Development Supporting Agency (BPPSPAM) Rachmat Karnadi said.Those projects are Umbulan Water Supply System worth IDR2 trillion, Jatiluhur Water Supply System IDR2 trillion, Water Supply for Tangerang IDR500 billion and Bandar Lampung IDR500 billion.The contracts for Bandar Lampung, Umbulan and Tangerang project are ready to be signed and its scheduled to be launched this week.The water supply is expected to reach 100% in 2025. However, its expected to 68.8% in 2015 and 80% in 2020, he said yesterday.The government is currently trying to attract private investor to finance those projects using the pattern of public private partnership with the provision of investment guarantee.The government is also committed to provide leniency to prospective investor by improving a number of regulations, both in term of business permit and the project implementation afterward.We are seeking for other financial sources like bank loan, securities bond and other legal mechanism that is applicable in financial institution. Such sources are being discussed and we expect it to be realized soon," he added.Reaches 44%The data from the Water Supply Agency at Public Work Ministry shows that the water supply until 2009 in urban areas reached 44% while rural areas was only 11.5%.In cooperating with private company, the agency provides lawyers to help local government in reviewing the cooperation agreement with private company. For instance, Umbulan project in East Java.Such lawyer provision is conducted to anticipate any agreement points with private company that may harm consumers or local governments.The government also needs approximately IDR10 trillion funds until 2015 to manage waste water.According to him, water supply using piping system is actually small, which is only below 3%. In fact, the quality and quantity of unprocessed water is declining due to global climate change and excessive unprocessed water suction. (12) (t06/msw)

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