DRINKING WATER SUPPLY SYSTEM DEVELOPMENT BY AFFORDABILITY OF COMMUNITY PURCHASING ABILITY CONSIDERATION USING CONTINGENT VALUATION METHOD (CVM) (CASE STUDY: PDAM CITY OF BUKITTINGGI, WEST SUMATERA)

• Main Author: FERNANDEZ (NIM : 25713306), RICKY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23953
• Institution: Institut Teknologi Bandung

This study aims to provide recommendation alternatives of drinking water supply system in Bukittinggi city West Sumatera based on the selection of the best system and financial feasibility by the affordability of community purchasing ability consideration. Results of the CVM method shows that the value of ability to pay (ATP) is Rp. 3.732 /m3 and value of Willingness To Pay (WTP) is Rp. 7.442 /m3. The value of this method is not much different if using the Provincial Minimum Wage (UMP) in 2015 and the Regulation of the Ministry of Home Affairs No. 23 2006 with the difference value of Rp. 144 /m3. Evaluation this method show that CVM method that used in this study can explain 87% factor that influence of the WTP value. The result of analysis show that system 4 has <br /> <br /> <br /> <br /> <br /> <br /> <br /> the best financial feasibility by the affordability of community purchasing ability consideration. This system use Sutijo Waters spring with capacity 300 liters/second and established in two phase: phase I (2016-2024) with capacity 100 liters/second and phase II (2024-2035) with capacity 200 liters/second. This system need total investment in phase I is Rp. 39.529.387.287 and phase II is Rp. 39.529.387.287. Investment of this system will be funded through "penyertaan modal pemerintah" program, 100% raw water unit will be funded by APBN through Directorate General of Water Resources, 70% of production unit will be funded by APBN through Directorate General of Human Settlements and 30% will be funded by APBD of Bukittinggi city, 30% of distribution network will be funded by APBD of Bukittinggi city and 70% will be funded by Bank loan. With water sales rate <br /> <br /> <br /> <br /> <br /> <br /> <br /> is Rp. 3.700/m3, this financing scheme is financial feasible with NPV Rp. 55.580.153.601, BCR 1,25 and BEP in 7 years with production cost Rp. 2.432/m3. This result of sensitivity analysis shows that this system is still feasible with risk of 10% increase in operating and capital cost, also 10% decrease in revenue.