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IIGF Provides PPP Project SPAM Bandar Lampung

14 February 2018

Bandar Lampung, 14 February 2018 - PT Penjaminan Infrastruktur Indonesia (Persero) / IIGF today executed the first project guarantee agreement in 2018 for the Bandar Lampung Drinking Water Supply System (SPAM) project.

Bandar Lampung SPAM project is a PPP scheme between PDAM Way Rilau Kota Bandar Lampung as the Contracting Agency (CA) with PT Adhya Tirta Lampung as the Executing Enterprise.

The signing of the project cooperation agreement was executed by IIGF President Director Armand Hermawan, with Ir. Djoko Sarwono, MM, President Director of PT Adhya Tirta Lampung for the Underwriting Agreement, and with Drs. AZP Gustimigo, MM, President Director of PDAM Way Rilau Kota Bandar Lampung for the Regres Agreement, witnessed by the Director General of Financing and Risk Management of the Ministry of Finance of the Republic of Indonesia Luky Alfirman, Expert Staff of Minister of Economy and Investment Ministry of PUPR Mochamad Natsir and Bandar Lampung Mayor Herman Hasanusi .

The Bandar Lampung SPAM project is the second drinking water project provided under government guarantees through IIGF with a project investment value of Rp 1.1 trillion (Rp 750 billion of PPP). Previously, in July 2016, IIGF has executed the signing of guarantee agreement for Umbulan SPAM project in East Java. The Bandar Lampung SPAM project is the first PPP project guaranteed by IIGF in 2018.

The Bandar Lampung SPAM project with a capacity of 750 liters / second will process and distribute raw water from the Way Sekampung River to meet the needs of drinking water distributed through transmission pipelines +22 km to 8 districts in Bandar Lampung City, Rajabasa, Labuhan Ratu , Way Halim, Kedaton, Tanjung Senang, SUkarame, Sukabumi, and Keadamaian, with a total of 60,000 homes or approximately 300,000 residents. In addition, the Bandar Lampung SPAM project is also getting the Feasibility Support from the Ministry of Finance valued at Rp 258.8 billion.

President Director of IIGF Armand Hermawan said that the signing of the guarantee project of Bandar Lampung SPAM is a form of IIGF's consistency commitment in supporting the Government to realize the acceleration of National infrastructure development.

"The signing of the Bandar Lampung SPAM project on this day is one proof that the PPP scheme attracts the private sector in the development of infrastructure projects. In addition to realizing the acceleration of development, Bandar Lampung SPAM project is also certainly will soon provide benefits for the community in getting water consumption, especially in the area of ​​Bandar Lampung, "said Armand.

On the same occasion, representing the Minister of Finance of the Republic of Indonesia, Director General of Financing and Risk Management of the Ministry of Finance, Luky Alfirman, expressed his appreciation for the strategic cooperation by all parties in this Bandar Lampung SPAM project.

"The government warmly welcomes positive private initiatives in its participation in infrastructure project development. In accordance with the Presidential Program Nawacita RI, the acceleration of infrastructure development evenly until now is still the main focus. In the midst of the limited state budget, to realize it requires positive synergy between the Government and the private sector, and the scheme KPBU is an effective solution "added Luky.

With the signing of this guarantee project of Bandar Lampung SPAM, until the beginning of 2018, IIGF has provided guarantees to 16 PPP projects from four sectors namely 10 Toll Road Sector Projects (Batang-Semarang, Balikpapan-Samarinda, Pandaan-Malang and Manado -Bitung, Jakarta - Cikampek II Elevated, Krian-Legundi - Bunder - Manyar, Cileunyi - Sumedang - Dawuan, Serang - Panimbang, Probolinggo - Banyuwangi and Jakarta - Cikampek II South Side), 3 Telecommunication Sector Projects (All Palapa Ring Project packages ie West, Central and East), 1 Electricity Sector Project (PLTU Batang), and 2 Water Supply Sector Projects (SPAM Umbulan and SPAM Bandar Lampung).