PUBLIC PRIVATE PARTNERSHIP BOOK

PROJECT DIGEST
Project Title Raw Water Supply Kertasari, West Java Province
Goverment Contracting Agency Minister of Public Works and Housing
Implementing Unit Directorate General of Infrastructure Financing
Directorate of Water Resources Infrastructure
Preparation Agency
Financing
Estimated Project Cost Rp 205.712.000.000
Estimates Concession Period 20 years
Location Bandung Regency, West Java

1. Project Picture (Map and/or Illustration of Project)

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2. The Opportunity
2.1 Project Background
Drinking Water Supply System (DWSS) development activities that have been initiated since
a few years ago by PDAM Tirta Raharja. Initially, the Kertasari Raw Water Supply System
(RWSS) was intended to meet the raw water needs of PDAM Tirta Raharja with a planned
extraction of 400 L/s.
In development, the Ministry of Public Works and Housing directs that the development of
the Kertasari Raw Water Supply System can be made a Regional of DWSS, so that this system
will also serve PDAM Tirtawening in Bandung.
Regarding the limitations of the National Budget, the Kertasari Raw Water Supply System is
intended to be developed through the transfer of Government Cooperation with Business
Entities (PPP). The PPP scheme can be applied in the development of the Kertasari Raw Water
Supply System because currently the interests of business entities, both private and State-
Owned Enterprises (SOEs), continue to increase to participate in financing water supply
infrastructure.

2.2 Project Description

The sources of raw water that will be used in Kertasari Raw Water Supply System are 5 (five)
springs available in the District of Kertasari, Bandung Regency. Total capacity is 400 L/s. Raw
water from the springs will be channeled to the Reservoir located at the Cikoneng Water
Treatment Plan (WTP) location ± 20 Km through a transmission pipe system that uses steel
pipes and HDPE using a gravity system. The steel pipeline will be built following the Citarum
River route, while the HDPE pipeline will be built follow the Jalan Raya Pacet line.
The scope for activities to be collaborated for the Kertasari Raw Water Supply System PPP
Project include:
a. Special Purpose Vehicles (SPV) distributes raw water to PDAM
b. Offtaker targets: PDAM Tirta Raharja and Tirtawening
c. Raw water capacity: 400 L/s
d. 21,12 KM transmission network
e. Collecting tubs are 3 units
f. The Raw Water Storage Tank is 1 unit in Cikoneng WTP.

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2.3 Project Objectives

The objective that can be obtained from Kertasari Raw Water Supply is to improve raw water
supply services so that the people who receive clean water benefits can also increase. Making
the regional raw water supply in Bandung regency and Bandung city.

3. Business Entity’s Scope

Design – Build – Finance – Operate – Maintenance - Transfer
The Private sector will be responsible for management, operation, development, and
maintenance of all the facilities the concession period. Part of the facilities and services include in
the scope are:
a. Building Broncaptering
b. Broncaptering Management
c. Building raw water transmission lines
d. Manage raw water transmission lines
e. Ensures low water loss in the transmission unit
f. Maintenance of transmission lines
g. Building a raw water reservoir
h. Manage and maintenence raw water reservoirs including main water meters.

4. Technical Specification
The water Spring Catcher Tub is designed to have a retention time of 10 minutes. The water spring
catching tub will be equipped with a stone filter to prevent entry of impurities from the outside,
but also a gate valve for operational purposes.
For the sources of raw water that will be used in Kertasari Raw Water Supply are 5 (five) springs
available in the District of Kertasari, Bandung Regency. For potential water spring Kertasari RWS
is;

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5. Environmental Impact Assessment (AMDAL) Findings

The Kertasari RWS is AMDAL MANDATORY activity because it is based on Appendix I of the
Minister of Environment Regulation 5/2012 which is a collection of raw water from springs with
a capacity of 400 L/s (> 250 L/s) and construction of a transmission network of around 20 Km
(more than 10 km). AMDAL documents have not yet been made.

6. Land Acquisition and Ressettlement Action Plan

This project is not needed land acquisition documen. Therefore, no resettlement plan needed.
Because the construction area Not exceed 5 hectares.

7. Project Structure
Description Rp (Billioner) %
Estimated Project Cost 205,712 100
Debt Level 143,998 70
Equity Level 61,714 30
FIRR - 14.04
NPV 168.74 -
WACC - 11.1
Amount of Availibility Payment/year 38.85 -

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8. Goverment Support and Goverment Guarantee

This project will be used financing with Availibility Payment. Other than that, the goverment
support can be VGF assistance from the Minister of Finance. Government guarantee will be
decided according to risk appetite of market investor.

9. Project Implementation Schedule

The collaboration period for the Kertasari Raw Water Supply PPP Project is 20 (twenty) years,
with 1 (one) years for construction.

10. Contact Information

Name : Arvi Argyantoro
Position : Director of Water Resources Infrastructure Financing
Phone : 021-7264267
Fax : 021-7264267
Email : argyantoro.arvi@gmail.com

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