This report is prepared
as part of the self-evaluation process for the nonsovereign project, West
Jakarta Water Supply Development Project in Indonesia, describing project
background, features and highlights as well as evaluation information, issues,
lessons, and recommended follow-up actions (ADB, Sep 2013):
"The contribution
to private sector development is rated satisfactory. As one of the two water
concessions awarded by PAM Jaya to service Greater Jakarta’s 10 million
residents,PALYJA operations offered a high-profile opportunity for the
Government of Indonesia to launchprivate sector participation and improve the
regulatory framework of the water sector."
"Despite the cost-constrained environment and limited tariff increases, PALYJA has continuously strengthened its linkages to lower-income households in its concession area. During 2008–2012, customers from social welfare facilities and low-income households madeup 25% of new PALYJA customers. About 79% of PALYJA customers, consuming 47% of the water sold, pay less than the cost of the service."
"Notwithstanding constraints imposed by limited tariff increases, PALYJA has registered positive operating and financial performance since 2008. Furthermore, it met water production and billing targets under the 2008 Revised Cooperation Agreement despite the absence of new water sources since the start of its concession in 1998. The project is rated excellent for business success and excellent for economic success."
"The project is rated satisfactory for environmental, social, health, and safety performance."
"The project is rated satisfactory for ADB investment profitability. PALYJA has been making interest and principal payments on time for the debt facility, fully complying with financial covenants under its loan agreement with ADB."
"Overall, the project is rated successful. It is a strong example of ADB private sector operations strategy support for corporate entities that promote sound business practices while reaching beyond their traditional customer base and improving the quality of life for lower-income households. The project has remained commercially and technically sound, benefiting from the first ADB local currency loan in Indonesia. It continues to demonstrate the potential for
innovation and increased room for efficiency improvement in the
water sector despite ongoing regulatory reform and associated
constraints."
"In future engagements with water concessionaires, ADB must (i) continue to actively support the capacity development of independent regulatory bodies to manage the public–private interface, and (ii) ensure the transparency of concession terms and enforceability of tariff structures to better retain the full support of all participants.
FROM:
"In future engagements with water concessionaires, ADB must (i) continue to actively support the capacity development of independent regulatory bodies to manage the public–private interface, and (ii) ensure the transparency of concession terms and enforceability of tariff structures to better retain the full support of all participants.
FROM:
Advice from Bobet Coral bobet_perez@yahoo.com
