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September, Final Tender for Bandar Lampung SPAM

Date :

28 Aug 2015

Category :

Roads

Source :

Investor Daily

File :

Investor Daily, 26 August, 2015, Page 6, Section: Infrastructure & Transportations 
Author not mentioned

Jakarta - Ministry of Public Works and People’s Housing (PUPR) will conduct the final tender for Bandar Lampung Drinking Water Supply System (SPAM) concession in mid-September. That follows the decision on the government’s financial support (viability gap funding/ VGF) worth Rp 350 billion made at the end of May.

"On Thursday (20 August) we had a meeting in Bandar Lampung in preparation for the mid-September, when we will open our final request for proposal tender," said Head of Support Agency for Development of Drinking Water Supply Systems (BPP SPAM) Ministry of PUPR, Tamin M Zakaria Amin, when contacted in Jakarta, Tuesday (25 August).

Tamin said that the tender prequalification process for the drinking water project already took place in 2012. From the pre-qualification, there have been four consortiums that pass this level. The four consortium companies are Water Consortium (Hyundai Engineering and Construction, Itochu Corporation and PT Potum Mundi Infranusantara); Abeima and PT Wijaya Karya Persero Tbk; Acuatico and Mitsubishi Corporation; as well as Manila Water and Great Giant Pineaple Co.

"There are four consortiums that have won the prequalification. When the request for proposal [document] is ready, we can immediately issue it. Next, we will see the offers from them," he said.

Tamin said that the Bandar Lampung SPAM project is the first infrastructure development project that will be supported with VGF from the government. He said that government support is needed to ensure passage of the project and support the project’s economic value. In fact, PT Penjamin Infrastruktur Indonesia (PII) has published a statement of commitment (letter of intent) to provide guarantee for the Bandar Lampung SPAM project.

The investment requirement for the Bandar Lampung SPAM project is estimated at around Rp 800 billion. The government provides financial support through VGF for construction purposes at a maximum of 45 percent of the project’s value, or Rp 345 billion, in order to raise the level of financial feasibility (Financial Internal Rate of Return/ FIRR) to 15 percent. (lrd)