NEWS

Private Sector Will be Invited to Manage Waste in West Java

PRIVATE SECTOR WILL BE INVITED TO MANAGE WASTE IN WEST JAVA

Posted : December 29, 2016

Jakarta – National Public Procurement Agency (LKPP) and West Java Province are planning to develop procurement document that will involve private sector investment for public infrastructures. The Public-Private Partnership Business Entity (KPBU) document will be used for procurement of Regional Waste Processing Facility Project (TPPAS) in Legok Nangka. The commitment is laid out in the Memorandum of Understanding and Cooperation Agreement signed by both parties on Thursday, December 22nd, 2016.

“KPBU is a method to develop infrastructure that invites (private sector) investors due to limitation of government budget. Challenges for this method are regulations, institution, land acquisition and turnovers of local leaders,” said Head of LKPP, Agus Prabowo.

Considering those challenges must be overcome to ensure construction of vital infrastructures, Prabowo asked West Java Governor, Ahmad Heryawan, and his team to work hand in hand in preparing the KPBU document. “Please be steadfast in working on this document. You will have to assign dedicated personnel to oversee the process,” he said.

According to Ahmad Heryawan, Regional TPPAS Legok Nangka is necessary for West Java as the province needs an integrated, environmentally friendly, and modern waste processing facility that will also bring positive impact to sustainable development. “Therefore we must examine the document thoroughly, and need to ensure the whole process of procurement abide the law and the winner really have the capital to develop the project. We hope LKPP can guide us in this tender,” he said.

West Java prepares Regional TPPAS Legok Nangka to replace the Temporary Regional TPPAS Sarimukti.  Regional TPPAS Legok Nangka will serve end processing of waste from Bandung City and Districts of Bandung, Sumedang, and Garut.

Development of TPPAS Legok Nangka is predicted to need Rp 2 trillion investment. The facility is expected to process at least 1,500 ton of waste daily and to generate electricity to be utilized by the citizens.

In line with President Regulation 38/2015 about Public-Private Partnerships, LKPP has the task of developing its procurement regulations. LKPP along with selected KPBU Projects will develop procurement document, which will be further developed into sector-based procurement document model that aims to give detailed technical guideline for both Partnership Project Person in Charge (PPJK) and investor.

With this signing, now LKPP is assisting 3 KPBU Projects in developing project procurement documents. Previously, LKPP and Bekasi City have signed MoU and Cooperation Agreement for Drinking Water Provision System Project in Pondok Gede-Jati Asih Bekasi in July 2016. Meanwhile in early December 2016, LKPP and Bandung City has signed similar documents for Public Street Lamps Project in the city. (MCA-Indonesia/Bunga Manggiasih)