FINANCING SCENARIO ANALYSIS TO IMPROVE WATER AND WASTEWATER SERVICES IN BANDUNG CITY BASED ON SOCIETY’S WILLINGNESS AND ABILITY TO PAY

• Main Author: NURUL FITRI, ADELYA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53814
• Institution: Institut Teknologi Bandung

Bandung City is one of the cities in Indonesia where the water and wastewater services are managed by a regional owned company (BUMD), namely PDAM Tirtawening, that has social and economis function. Based on data in 2020, in Bandung shows that there is a large enough gap between the demand and availability of clean water as well as service coverage and the needs for wastewater services. The improvement of water and wastewater services in Bandung City from the results evaluation of existing conditions can be carried out with the potential of development such as a decreasing in NRW, development of water production through the use of iddle capacity and uprating, also optimization of the wastewater network and development of onsite systems. Economic analysis using the Contingent Valuation Method (CVM) shows that the WTP value for water supply is IDR 7,173/m3 and ATP for water supply is IDR 7,632/m3 , while WTP for wastewater is IDR 3,112/m3 and IDR 142,857-188,961/ desludging, and ATP for wastewater IDR 53,080/month. Factors that influence WTP value for water and wastewater services using regression binary logistic model are income and education of the society. Meanwhile, from the evaluation results of the CVM method with multiple linear regression, the factors that influence for water supply is continuity, as well as piping problems and service satisfaction. The analysis of funding sources for improving water and wastewater services based on the results of the analysis of expenditure costs as well as considering the ability and willingness to pay of the society, the chosen source funding alternative is government capital participation and private contribution in desludging section, with water price IDR 7,585/m3 and wastewater cost IDR 3,065/m3 . There are three financing scenario which will be further analysis by financial feasibility, there are one bill payment of water and wastewater, separate bill payment of water and wastewater, and implementing a sanitation tax for wastewater. In terms of financial feasibility, the three financing scheme are considered feasible, with NPV > 1, the ratio for BCR > 1, IRR > interest rate, and payback period shorter than the project period.