D2S2 INO2 Presentation

8/6/2019 D2S2 INO2 Presentation

http://slidepdf.com/reader/full/d2s2-ino2-presentation 1/26

The views expressed in this paper/presentation are theviews of the author and do not necessarily reflect the

views or policies of the Asian Development Bank (ADB),

or its Board of Governors, or the governments theyrepresent. ADB does not guarantee the accuracy of thedata included in this paper and accepts no responsibilityfor any consequence of their use. Terminology used may

not necessarily be consistent with ADB official terms.



"New Thinking on Water Governance“Conference

Public Private PartneshipCity of Jakarta Example

Lee Kuan Yew School of Public Policy Singapore July 2009

Barce Simarmata

Luc Martin



1

2

3 Challenges for the Future

PALYJA and its concession contract

Public Private Partnership (PPP) Principles



1

2






PPP Contract Structures

Contract Duration in Years

3 ∞5 10 3020

AFFERMAGE(Lease Contract)

Operations&

Maintenance

BOT / ROT

Degreeof PrivatePartner Involvement

Design BuildOperate

TechnicalAssistance

ManagementContract

CONCESSION

Joint VenturePublic/Private

Private Company

Municipality

FullyPrivately Owned



Partnership Approach

• Integration of SUEZ ENVIRONMENT global water skills into

the local context.

• Partnership with local industrial and commercial

organisations.

• Formalised partnership relationship with community

leadership on long term basis.

• Mutual respect & understanding.

• Combining strengths.

Creation of specialised

LOCAL WATER COMPANY

to SERVE the COMMUNITY



Key Elements of

PPP• Contract provides:

– Clear objectives

– Clear standards – Strong control

– Regulated price (decided by the Public Authority)

• Assets ownership remains with public authority

• Operational responsibilities delegated to private

sector

• Long term planning and control firmly in hands

of public authority



Balance of Stakeholder Interests

Consumers

Public Authority Operator

ServiceQuality &

Performance

Political Sphere Commercial Sphere

Market Sphere



Who Owns the Infrastructure ?

Who Takes the Decisions ?

Who Sets the Water Tariff ?

Who Operates ?

Who Regulates?

Public Authority

Defined in the Contract

Public Authority

Private Operator

Public Authority

Review of Key Questions



1

2






Concession Area

PALYJA

Western Part of DKI Jakarta

Westward of Ciliwung river

UPP BaratUPP

Pusat

UPP Selatan

3 UPP : Unit Pelayanan Pelanggan+ 1 UPP for Key Account



PALYJA Ownership(since July 2006)

Suez Environnement

51 %

- Lead Operator - PT. Astratel Nusantara(ASTRA Group)

30%

CitigroupFinancial Products Inc.

19%

PALYJA



Institutional Stakeholders Mapping

DKI Jakarta

Administration

PAM JAYA

Customers

Regulatory

Body

PALYJA

Cooperation Agreement

DPRD

City Council



Contractual Performance Objectives

Technical Targets

• Volume of water billed.

• Water production.

• Non Revenue water.• Number of connections.

• Service coverage ratio.

Service Standards

• Quality of water supplied tothe customers.

• Pressure at customersconnection level.

• Customer care.

• Interruptions in distributionnetwork.

• New connections.



Raw Water & Bulk Treated Water Supplies

Cikokol90 L/sec

62%

32%

1%

5%



2 majors Water Treatment Plants(62 % of the total supply)

WTP Pejompongan 1(Degremont 1953)

WTP Pejompongan 2(Degremont 1965)



1998 2008

Continuous supply No waterUnstable supply

Approximate limit of salinity in shallow wells

Extension & Improvement of Water Supply1998-2008



201 662

398 557

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

Feb 1998 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

N u

m

b e r o f C u s

t o m

e r s

Number of Customers

Number of customers increased by almost 100%



Coverage Ratio



Customer base evolution

+ 31 %

+ 92 %

+ 46 %

+ 614 %

+ 76 %

6 M th A S l d NRW i



6-Month Average Sales and NRW sinceTake Over

61 %

51 %

45 %



1

2






New business model : Output Based Aid



New business model : Output Based Aid

DKIJakarta

PALYJA

Concession Contract

Jakarta

Water Services

Communitiesnot yet connected (at least legally)

Connect Communities +Provide Service

GPOBA

World Bank

EscrowAccount Bank

Subsidy

Outputs

PAM JayaRegulator

First Output: connections laid75% re-imbursement

Second Output: 3 consecutive billswith water consumption > 10 m3/month

25% re-imbursement

With the GPOBA grant of US$ 2.5 million, PALYJA will provide accessto the water system to about 7,000 low-income households by 2009



Main challenges faced by Jakarta

The city of Jakarta is still looking for anincrease of the piped water coverage

Groundwater usage, on which rely

currently 25% of the population, is likelyto be gradually reduced: – The city of Jakarta is “sinking” becauseof the groundwater over-exploitation andrisk of flooding increase

– Groundwater is getting more and morepolluted (salt intrusion, chemical andmicrobiological pollutants)

– Groundwater tariffs will be increasedand aligned with piped water tariffs

Therefore, new water resources andadditional treatment facilities will beneeded within the next 5 years to face

growing demand and service coverageexpansion



Thank you

Terima Kasih

Merci

Muchas Gracias

Matur Nuwun

Hatur Nuhun

MauliateTeşekkürler

Xie-xie

Obrigado

Date post:	07-Apr-2018
Category:	Documents
Upload:	adbwaterforall
View:	216 times
Download:	0 times

D2S2 INO2 Presentation

Documents