FEASIBILITY ANALYSIS AND STRATEGY OF FECAL SLUDGE MANAGEMENT PROCUREMENT WITH BUILT-OPERATE-TRANSFER PUBLIC-PRIVATE PARTNERSHIP SCHEME (CASE STUDY: SOUTH TANGERANG CITY)

• Main Author: Firni Sipayung, Rugun
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66276
• Institution: Institut Teknologi Bandung

Public-Private-Partnership (PPP) has recently become one of the solutions in overcoming the limitations of the APBN/APBD. South Tangerang City will provide faecal sludge management services consisting of a desludging sub-system, a transportation sub-system and a treatment sub-system. In this study, an analysis of the provision of faecal sludge management was carried out with the PPP Built-Operate-Transfer scheme with an Availability Payment investment return system assessed by the Value for Money (VfM) principle. The VfM analysis used considers both quantitative and qualitative aspects. Quantitative aspect analysis uses the Public Sector Comparator (PSC) method to determine the difference between the value of investment costs and operational costs in conventional procurement (without PPP) with the procurement of PPP schemes. The results showed that the VfM value was positive, namely Rp. 17,744,964.52 and the VFM ratio was 4%. The qualitative aspect analysis assesses the readiness and feasibility of the faecal sludge management service procurement project in South Tangerang City based on five criteria, namely the criteria for the readiness of the management agency, the criteria for the interest and readiness of the private sector, the criteria for the readiness of government agencies (central) and the criteria for community support, the criteria for feasibility and project readiness (technical, socio-economic, commercial, project information) as well as the criteria for the suitability of the project with the PPP scheme. The average value of the five criteria is 2,55 with a maximum score of 4. The value of the criteria for readiness of faecal sludge management institutions (local governments), criteria for interest and readiness of business entities (private parties) and criteria for suitability for PPP scheme projects are at low scores respectively 1,33; 2; and 2,75. While the criteria for the readiness of central government agencies and the criteria for community support, the feasibility criteria and project readiness are at a fairly high score of 3,4 and 3,28, respectively. The results of the study stated that the procurement project of faecal sludge management services with the PPP scheme in South Tangerang City was financially feasible but preparations needed to be made on the readiness criteria of the faecal sludge management agency (local government), the criteria for interest and readiness of business entities (private parties) and project suitability criteria. with the PPP scheme. To support the procurement of sewerage management for the PPP scheme, 12 strengths, weaknesses, opportunities and threats (SWOT) factors were identified based on an extensive literature review. Structured interviews with experts from a public sector perspective were conducted to analyze and integrate their perceptions of the SWOT factors. A quantitative SWOT analysis methodology consisting of the Analytical Hierarchy Process (AHP) is proposed to analyze the strategy of the Indonesian government in developing the management of sewage sludge in the PPP scheme. The results show that the strongest supporting factors are "through the PPP scheme the government can meet the needs of faecal sludge management infrastructure with a limited budget" and "acceleration of Sustainable Development Goals point 6 and RPJMN 2020-2024 in the wastewater sector" and the strongest inhibiting factor is "demand conditions current desludging from the community is still low” and “the PPP takes a long time to prepare a cooperation contract.” The strategic direction of the public is determined according to the results of the proposed method. The recommendations proposed in preparing the procurement of faecal sludge management for the PPP scheme, the first is the creation of a Regional Regulation that requires desludging every 3-5 years accompanied by a smart compliance strategy such as unifying the cost accounts for wastewater and drinking water, electricity tariffs, or being used as a Land and Building Tax. Second, prepare a faecal sludge management agency from both the operator and the regulator. The minimum form of operator agency is Regional Public Service Agency and Municipally owned corporation so that it can easily carry out PPPs. Third, the government ensures that the supply (of faecal sludge management infrastructure) is also available along with the formation of regulations so that the government is ready to serve the entire management of sewage. Fourth, the infrastructure development for the faecal sludge management under the PPP BOT scheme should be integrated and not fragmented so that the management of sewage can be sustainable. There needs to be integration so that when the sewage treatment plant (STP) is built, there will be sewage entering the STP consistently.