21 JULY 2016
Indonesia Infrastructure Guarantee Fund has signed the Guarantee Agreement and Recourse Agreement for Umbulan Water Supply System (SPAM) in East Java on July 21, 2016. The Rp 2 trillion worth project will be built under Public Private Partnership (PPP) scheme between The Government of East Java Province and PT Adhya Tirta Umbulan.
The signing ceremony was held at Graha Sawala, Coordinating Ministry for Economic Affairs and witnessed by the Minister of Public Works and Public Housing Basuki Hadimoeljono, Coordinating Minister for Economic Affairs, Darmin Nasution, and Vice Minister of Finance, Mardiasmo. In addition, this event also attended by the representatives of Business Entity and The Government of East Java Province.
SPAM Umbulan has been declared as one of the National Strategic Projects by President Joko Widodo stipulated in the Presidential Decree No. 3/2016 on National Strategic Project Acceleration. With the capacity of 4.000 litre/second, this project is targeted to meet the demand of clean water in the main regions of East Java area, such as Surabaya, Sidoarjo, Gresik, Pasuruan and Pasuruan.
Out of the total investment of Rp2.05 trillion, the government helps to support the funding through viagibility gap fund (VGF) worth Rp818 million. The remaining investment of about Rp1.3 trillion will be borne by PT Meta Adhya Tirta Umbulan.
IIGF has signed the Guarantee Agreement with PT Meta Adhya Tirta and Recourse Agreement with the Government of East Java Province for Umbulan project. This project is the first water and regional project which obtained Government Guarantee through IIGF. Up until 2016, IIGF has given guarantee for 8 infrastructure projects.