PROJECT STRUCTURE WILL BE DEFINED AFTER OBC
PEKANBARU WATER SUPPLY Location: Riau
Project Status: Final Business Case
FinalBusiness Case (FBC)
Q1 2019
Government Contracting Agency : Director PDAM Tirta Siak Pekanbaru Contact Person : Kemas Yuzferi (Director of PDAM);
+62-761-23825 or +62-813-6440-1776;
email: [email protected]
Sector: Water Supply Sub-Sector : Water Supply
Indicative Preparation Schedule
Indicative Project Structure
P u b l i c P r i v a t e P a r t N e r s h i P s
PROJECT DIGEST
Project Title : Pekanbaru Water Supply
PDAM Tirta Siak Pekanbaru PDAM Tirta Siak Pekanbaru
PT. SMI (Persero) through PDF from Ministry of Finance USD 51.88 million
25 years
Pekanbaru, Riau Government Contracting Agency
Implementing Unit Preparation Agency Estimated Project Cost Estimated Concession Period Location
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1. Project Picture (Map and/or Illustration of Project)
2. The Opportunity
2.1. Project Background
The city of Pekanbaru as the capital of the Province of Riau is currently undergoing physical development that has implications for land function and population density. Based on the Pe-kanbaru Water Supply System Master Plan (PDAM), the targeted drinking water service reached 95% in 2033. Based on the RPJMN 2015-2019, the coverage of drinking water service through-out Indonesia by 2019 should have reached 100%, and the service level is targeted to reach 95% by the year 2019.
2.2. Project Description
The purpose of Pekanbaru Water Supply is to provide reliable drinking water infrastructure in ac-cordance with technical standards to meet the requirements of the community, and to support
economic activities in Pekanbaru, as well as to be managed efficiently. Provisions of drinking wa-ter infrastructures through SPAM Pekanbaru will reduce the financial burden of the Pekanbaru Municipal Government in funding the drinking water sector while still allocating the risks to the parties involved.
The project capacity plan of Pekanbaru Water Supply is 500 litres per second which will be ful-filled through one stage of a water treatment plan development in 2020 and will start to operate in 2022. SPAM Pekanbaru will be implemented by the BOT mechanism, where installations for the distribution of pipeline network will become a part of an investment for business entities.
House connection is targeted at 39,000 by 2024, and an additional 23,600 house connection is required during 2022-2024, or addition of 7,890 house connection per year. Looking at the capabilities of PDAM and the community, the additional number of connections needs to be phased out. The absorption target can be accomplished if there is a funding commitment from the National Government Budget Plan, the Regional Government Budget Plan for Riau Province, and also the Regional Government Budget Plan for Pekanbaru that can be obtained in accor-dance with the plan.
2.3. Project Objectives
Meeting the drinking water requirements for residents of Pekanbaru who are currently still us-ing groundwater, the groundwater is comus-ing from both shallow and deep wells, which does not meet health standards in accordance to the regulations of the Minister of Health No. 492/2010, especially for cooking and drinking water purposes. Groundwater can still be used for bathing, washing, and latrines. In addition, to provide reliable drinking water infrastructures and to be managed efficiently in accordance with technical standards to meet the needs of the communi-ty and supporting economic activities in Pekanbaru.
3. Business Entity’s Opportunity
The Business Entity shall be responsible for the design, financing, construction, and operation of the upstream part. As well as the investment portion of piping, namely:
1. Intake that will take raw water from Siak River with capacity 550 l/sec 2. Water treatment plant with a Total Capacity of 550 l/p
3. Raw water transmission Pipes
4. Main pipeline distribution investments
4. Project Technical Specification
15% -201% average daily demand Intake
1. Construction 2. Capacity
Water Treatment Plant 1. Construction 2. Capacity Reservoir
1. Operational/Buffer
No. Specification Criteria
P u b l i c P r i v a t e P a r t N e r s h i P s
5. Environmental Impact Assessment (AMDAL) Findings
Paying attention to the list of business plans and/or activities required to have AMDAL as outlined in Appendix I from the Regulations of the Minister of Environment and Forestry, that the scope of Pekan-baru Water Supply is required to have Environmental Impact Assessment (AMDAL) and
Environmen-IV
V
VI VII
VIII IX
No. Specification Criteria
1-hour supply at peak daily demand 10% volume
60 - 80 m water column V
2%
5%
1-2%
24 hours/day
Health Minister Regulation No. 49/2010 and WHO Guidelines for Drinking Water Quality, 2011
Indonesia: SNI
International: ISO, JIS, AWWA, ASTM, ANSI, DIN, BS 50 years
2. Drinking Water in Reservoir
3. Maximum upper-level design on the reservoir
Drinking Water Transition Pipes 1. Maximum Pressure
2. Minimum Pressure The Rate Water 1. Intake
2. Production Facilities 3. Transition Pipelines Operation Hour
Drinking Water Quality
Material Standard Life Time Asset
tal Permit. Currently, the AMDAL document of SPB Kota Pekanbaru SPAM Project is being prepared by the AMDAL Consultant.
6. Land Acquisition and Resettlement Action Plan
In Pekanbaru Water Supply, the initial identification of the project development intake location, trans-mission pipeline, reservoir, and distribution pipeline network is as follows:
a. Intake location
Intake is planned to be built in a ‘tampan’ area located on the banks of the Siak River.
b. Transmission pipeline plan
Transmission pipeline is planned to be built on several roads. Related to that issue based on information from the Regional Finance and Asset Management Board of Pekanbaru, the road status is planned to be used as the location of the transmission pipeline network.
c. Reservoir plan
The reservoir is planned to be built in 4 (four) areas which are: Payung Sekaki subdistrict, Sukaja-di sub-Sukaja-district, Sail sub-Sukaja-district, and Lima Puluh sub-Sukaja-district. Related to the information obtained from the Regional Financial and Asset Management Division of Pekanbaru, the status of the land to be used for the construction site of the reservoir in the Pekanbaru Water Supply Project.
7. Project Structure
Estimated Project Cost Indicative debt to equity i. Debt Level
ii. Equity Level FIRR
70%
30%
14.27%
USD 51.88 Million
* Note: The initial assumption is based on ideal calculation with best practice facility (Project Cost calculation is still arranged in FBC stage)
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P u b l i c P r i v a t e P a r t N e r s h i P s
8. Government Support and Government Guarantee
The project is indicated to require government support in the form of fiscal and non-fiscal. Govern-ment support includes VGF, Guarantee, Technical Support of the PUPR Ministry. More detailed expla-nations will be listed in the FBC.
9. Project Implementation Schedule
Indicative project implementation schedule for Pekanbaru Regional Water Supply:
10. Contact Information
Name : Kemas Yuzferi Position : Director of PDAM
Address : Jl. Jenderal Sudirman No. 146, Pekanbaru Phone : +62-761-23825
Email : [email protected]
Bid Award Q1 2020
Financial Close Q2 2020 Contract
Signing Q1 2020
Construction Q3 2020
Pre-Qualification Q4 2019
Request For Proposal Q4 2019 FinalBusiness
Case (FBC) Q1 2019
P u b l i c P r i v a t e P a r t N e r s h i P s
Q4 2018 Q1 2019 OBC
Q2-Q4 2019
FBC Q4 2019
PQ Q1 2020
RFP Q2 2020
Bid Award
Q2 2020 Contract Signing
Q2 2020 Q4 2021 Construction Description :
This project includes the revitalization and mod-ernization of existing traditional market to be better in terms of facilities and supporting infra-structures for market activities. The total area of this project is 39,851 m2 (includes 21,051 m2 de-veloping area).
Estimated Project Cost: USD 17.24 Million Financial Feasibility:
FIRR : 14%
NPV : USD 1.74 Million
Estimated Concession Period: 20 years Business Opportunity:
Transaction adviser/Bidder/financier
Indicative Government Support & Guarantee:
Government support and Government guarantee will be determined in Final Business Case (FBC)
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