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Financial Close East Java Water Project: A Breakthrough

30 December 2016

Jakarta December 30, 2016 - Following the signing of Guarantee Agreement and an Agreement of Recourse on July 21, 2016, today at the Coordinating Ministry of Economy Affair has carried out the signing of  Financial Close Water Supply System (SPAM) Umbulan Project which is the first  water project implementing Public Private Partnership (PPP). In addition, this is the initial water project is being guaranteed by government through PT Penjaminan Infrastruktur Indonesia (Persero) (PT PII).

The project which has an investment valued of  Rp 2 billion  is one of nine infrastructure projects  PPP schemes which have been given a government’s guarantee by PT PII. As for  9 (nine) infrastructure projects,  there are 4 toll’s projects (Batang-Semarang, Balikpapan-Samarinda, Pandaan-Malang and Manado-Bitung), Power Plant Stems, SPAM Umbulan and the whole package of Palapa Ring’s  Project it’s named  the West, Central, and East with overall total of investment is Rp 81 billion.

“Financial Close SPAM Umbulan has become a starting point to accelerate the development of infrastructure. This project is a fisrt project of which the finance comes from private entities together with PT PII as a single window policy in guarantee provision that plays a pivotal role in attracting private participation for infrastructure development, said Sinthya Roesly, CEO of  PT PII

Sinthya added that, the government’s guarantee through PT PII, the projects’ capital through private sector participation should be more enlarge thus Government of Indonesia in the position not to depend on state budget.

Moreover , this project aims to fulfill the needs of drinking water for the community spread over 5 districts / cities of Surabaya, Gresik, Sidoarjo, Pasuruan and Pasuruan. Various of stakeholders have work synergized to support the successfulness of this project, among others Ministry of Economic, National Development Planning Agency (Bappenas), the Ministry of Finance, Ministry PUPR and also the participation of the Ministry of Domestic Affairs of  which in the stage of execution at the Local Government’s level later.