Gov’t Offers G2B Scheme for Drinking-water Treatment System Project
Date 19 April 2020
Ministry of Public Works and Pubic Housing conducts market sounding in government-to-business cooperation (KPBU) scheme for drinking-water treatment system (SPAM) project worth Rp2.21 trillion from Karian Dam to Serpong, Banten Province.
According Minister of Public Works and Public Housing Basuki Hadimuljono, drinking water facility is one of basic infrastructures that plays vital role for the health and environment. Therefore, the construction of the SPAM is a priority in ensuring the sustainability of infrastructure development amid economic uncertainty as the impact of COVID-19 pandemic.
“Thus, this project will bring great benefits when the pandemic is over. We expect this project can be realized and at the same time it can contribute to meeting the target of the 2020-2024 National Medium-term Development Plan (RPJMN) of providing full access to drinking water,” he said.
The Minister went on to say that the Karian-Serpong SPAM brings not only social-economic value for drinking water supply for people in Jakarta, but also brings environmental remediation to the city of Jakarta, particularly to prevent the land subsidence due to excessive use of ground water.
“When the project is completed, we will issue policy to prohibit people from using ground water. As for now, they still can use it because the supply, which is solely sourced from Jatiluhur Dam, West Java, cannot meet the need,” he said.
On that occasion, the Minister expressed hope that the project will begin in 2021. Thus, construction of Karian Dam in Lebak, Banten which is scheduled to be completed in 2021 can be followed with the construction of Karian-Serpong SPAM.
“Tender process of the project is expected to start immediately so that the contract can be signed at the Q4 2020. The construction will begin in 2021 and complete in 2022-2023,” the Minister said.
For the record, the SPAM can supply 4,600 liters /second to 1.6 million people in West Jakarta and the surrounding areas: 3,200 liters /second for West Jakarta, 650 liters /second for Tangerang, and 750 liters /second for South Tangerang. The investment repayment of the project which contract would last for 33 years will be made through water tariff.
Karian-Serpong SPAM project is really important because Jakarta city-owned water company PAM Jaya can only supply 28.05 percent of water needs, while Tangerang city-owned tap water company can only supply 12.77 percent of water needs in the cities of Tangerang and South Tangerang. On the other hand, the KPBU scheme is used since the country has limited amount of the State Budget that is allocated for infrastructure development.
In the meantime, the Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia who is also joined the virtual market sounding asserted that infrastructure is one of Government’s priorities to attract investment and recover the economy amid global and national economic uncertainties that the COVID-19 pandemic brings.
“The BKPM will give its full support by facilitating permits, construction and finalization process for those winning the tender,” he added. (Ministry of Public Works and Public Housing/EN)
Translated by : Rany Anjany S
Reviewed by: Mia Medyana