Water

Pilot and Demonstration Activities
Model for PDAM Collaboration for Improved Raw Water Management

Water utilities in Indonesia (PDAMs) suffer a great deal from lack of sufficient raw water sources near their existing or planned service areas and from the poor water quality of available water sources. These conditions increase the PDAMs’ operations and maintenance costs, resulting in very poor water supply service to customers and limiting their potential to increase coverage. Raising tariffs, in this case, is out of the question.

While other water sources are available, especially springs in certain district administrative areas, the local PDAM lack the financial capacity to harness them. These water sources are either too unmanageable because of their size or because of their distance and elevation. However, these springs have the potential to become alternative water sources, if only PDAMs could share the costs of harnessing them.

Four PDAMs within Greater Bandung—home to over 8 million people—face this dilemma. These 4 PDAMs—PDAM Bandung Municipality, PDAM Bandung District, PDAM Subang District, and PDAM Sumedang District—realized the need collaborate to efficiently and effectively use these raw water sources. Their collaboration will

• Secure quantity of good quality raw water through optimizing all raw water sources
• Improve service levels by supporting PDAMs’ operations & financial sustainability
• Increase access to safe water for Greater Bandung
• Provide easier access to alternative water investment financing through better matching of supply and demand

This PDA will develop and test a collaboration model for water source utilization and water supply production for PDAMs.

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This PDA aims to identify and formulate the technical, financial, and institutional components of a formal collaboration of 4 PDAMs in Greater Bandung that is designed for better conservation and improved management of raw water sources. This collaboration entails the creation of a legal entity which will be involved in

• Facilitating water resources protection and management of the combined raw water supply
• Establishing strong collaboration with government (local, provincial, national), civil society organizations, and donor agencies for operational support and additional financing.

The PDA will also develop the framework for such collaboration, institutional arrangements, and identifying the required processes and mechanisms.

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• Proposal (February 2008) [PDF]