Water and other urban infrastructure and services / Urban sanitation

The project impact will be health improvement through a reduced occurrence of water-borne and water-washed diseases in the cities covered by the project. The outcome will be increased access to sanitation services by households in the cities service areas.

The proposed Metropolitan Sanitation Management and Health Project (MSMHP) II supports (i) the implementation of the Government's Roadmap to Acceleration of Urban Sanitation Development 2010 - 2014, which targets sewerage systems in 16 cities and community based sanitation in all other cities; (ii) the National Policy for the Development of Community-Based Water Supply and Environmental Sanitation; (iii) ADB's Water Operational Framework 2011- 2020, which has a strong emphasis on sanitation and is directed toward efficient technologies and capacity development programs; (iv) ADB's Water for All policy; and (v) the draft Indonesia Country Partnership Strategy 2011-2014.

The project will scale up ADB's MSMHP and its capacity building support by financing construction of sewerage systems and wastewater treatment plants (WWTP) in 5 cities, through a project loan followed by additional interventions. The project preparatory technical assistance (PPTA) will assess lending modalities to promote long-term engagement between ADB and the government.

The Project will provide improved urban wastewater services in metropolitan areas. It will respond to needs of urban communities, including low income households by building collection and treatment systems, optimizing existing community assets, building local institutional capacity for community-based and government-owned wastewater service providers and Regional Governments (RG).

Improved access to safe water and basic sanitation are key targets of the Millennium Development Goals (MDGs). Indonesia is on-track to meeting its water supply MDG, but is behind in reaching its sanitation target. The MDG target for accessing basic sanitation facilities is 62% of the population by 2015. In 2009, the Government of Indonesia estimated that 51% of the households had access to basic sanitation. The lack of access to basic sanitation leads to the spread of water-related diseases like diarrhea, skin disease, intestinal worms, malaria and dengue. These diseases disproportionally affect the poor population, especially children, due to their limited access to medical care and poor nutrition. While the infant mortality rate in Indonesia decreased substantially from 145 per 1,000 live births in 1967 to 35 in 2006, it is still far higher than in other Southeast Asian countries.

Only 11 out of 330 cities have partial sewer systems with wastewater treatment plants, covering only 2% of the national population. The urban population depends heavily on septic tanks, pit latrines, and open defecation. Significant infrastructure investment is required to improve and expand urban sanitation. Overlap in institutional responsibility leads to lack of investments, operation and maintenance (O&M), and overall sanitation planning. Human capacity development and long-term awareness programs are needed to ensure sustainability and stakeholder support. Community awareness is low, and community participation in sanitation planning needs improvement.

The implementation arrangements for the project will be similar to that of the MSMHP's. The Directorate General for Human Settlements (DGHS) of the Ministry of Public Works (MPW) will be the executing agency and will set up the central project management unit (PMU). The DGHS will appoint government implementing agencies, which will establish provincial PMUs to manage central government-financed activities of the project. Local PMUs will be established for city governments who will be implementing agencies for locally-financed initiatives.

Project implementation assistance will be provided through a consultancy firm procured through Quality and Cost Based Selection (QCBS) method. The consultants will be engaged by the DGHS according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Equipment and works will be procured according to ADB's Procurement Guidelines (2010, as amended from time to time).