WB and SCE invest in clean water project in Way Rilau
Oyos Saroso H.N., The Jakarta Post, Bandar Lampung | Sat, 10/02/2010 10:56 AM
The World Bank (WB) and the Singapore Corporation Enterprise (SCE) have pledged Rp 300 billion (US$30 million) to invest in state-owned tap water company Way Rilau PDAM in Bandarlampung.
The project is expected to improve services for the company’s 50,000 customers and expand access to tap water to more households.
“We will establish a joint venture. They will build and sell water, and Way Rilau PDAM will distribute water to the public,” Way Rilau PDAM managing director A.Z.P. Gustimigo said Friday.
“This is like a profit sharing basis and the break-even point will be achieved in 25 years,” he said.
The project will commence next year and is expected to be completed by 2012. The project will pipe water to residents in Bandarlampung from the Tegineneng dam located 21 kilometers away.
Way Rilau also expects to obtain Rp 80 billion in auxiliary funds from the central government for the project.
The Investment Insurer Institution is ready to guarantee the investment by the WB and the SCE. The Finance Ministry has formed the Indonesian Infrastructure Insurance (PII) to secure the investment,” Gustimigo said.
The Way Rilau PDAM currently serves around 26 percent of all of residents in Bandarlampung.
He said the number of Way Rilau PDAM’s customers had not changed significantly over the past five years and that the majority of them lived in areas where there was a continuous supply of water and adequate water pressure.
“We admit that reaching the national target of [supplying water to] 80 percent of an urban population by 2015 in line with the Millennium Development Goals is a very difficult challenge and very hard
to reach. However, with hard work and assistance from the World Bank, we hope everything can be realized,” he said.
Many of Way Rilau PDAM’s customers have complained about frequent disruptions to supply and a pungent smell in the water.
“The water is not fit for washing, let alone drinking, despite the fact that we have always paid our monthly bills on time,” said Way Halim resident Muhammad Amin.
