scholarly journals Ten Years of Public Private Partnership in Jakarta Drinking Water Service (1998-2007): Eastern Jakarta Drinking Water Service by Thames PAM Jaya

2021 ◽  
Author(s):  
◽  
Renalia Iwan

<p>Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.</p>

2021 ◽  
Author(s):  
◽  
Renalia Iwan

<p>Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.</p>


2014 ◽  
Vol 9 (3) ◽  
pp. 353-361 ◽  
Author(s):  
Paul Nakhungu Kombo ◽  
Emmanuel Chessum Kipkorir ◽  
George Tom Ekisa

Access to safe drinking water remains a challenge for most developing countries including Kenya, which is already classified as water-scarce. To enhance water supply to consumers, the Government of Kenya enacted the Water Act 2002 that opened the door for private sector to partner with the government to revitalize water service delivery. As a result, the government has partnered with the private sector and civil society organizations to enhance access to safe drinking water and sanitation services with a special focus on the materially-dispossessed households. However, the partnership is faced with challenges including inadequate resources and poor working relationship between the public and private sector. This paper assesses the impact of the partnership approach in scaling up water service provision in order to enhance its access by poor households. Household survey and key informants interviews were the main data collection methods and the collected data was analysed using descriptive statistics. The study found out that Public-Private Partnership (PPP) approach has enhanced water accessibility in Busia Municipality since the majority of households (84.4%) can access water within a distance less than one kilometre, however, the residents' complaint of high water bills attributed to the private sector involvement.


Author(s):  
Hakan Yurdakul ◽  
Rifat Kamasak

The public-private partnership (PPP) model has been increasingly popular in recent decades as a mechanism to support infrastructure related investment activity. PPPs creates many advantages for countries such as releasing from financial burden of high cost infrastructure investments, bringing high quality of public service and increasing efficiency of operations through transfer of private sector expertise. However, these benefits are not guaranteed for every PPP project since successful implementations are subject to several factors. This chapter aims to review the different aspects of PPPs in detail and examine the factors which play crucial roles for successful PPP implementation.


2021 ◽  

The Government of Pakistan strongly supports public–private partnership (PPP) initiatives. From 1990 to 2019, Pakistan witnessed 108 financially closed PPP projects, with a total investment of approximately $28.4 billion. About 88% of these projects are in the energy sector, attracting more than $24.7billion, followed by investments in the port sector. In early 2021, Parliament approved the amendments to the 2017 PPP Law, enacting the Public Private Partnership Authority (Amendment) Act 2021. This further strengthens the enabling legal and regulatory framework for developing and implementing PPPs, thereby promoting private sector investment in public infrastructure and related services.


Author(s):  
Даниїл В. Лапоног

The article seeks to provide insights into contemporary research in public-private partnership development in the road transport market. The study reviews a range of world public-private partnership best practices which demonstrate that effective interaction between government and business at different levels (national, subnational and regional) allows to attract and allocate investment resources more effectively, thus contributing to creating new jobs, promoting better infrastructure development and enhancing the overall quality of life in the country. It is argued that among the key factors boosting the public-private partnership market development the most significant is the level of institutionalization. It is also asserted that this factor, in combination with the relevant political environment and the capital market specifics, facilitates building successful partnerships. Moreover, government initiatives together with legal and regulatory interaction frameworks shape solid foundation to encourage further public-private partnership development by gaining positive effects from successful implementation of such partnerships, designing roadmaps and unified standard procedures and processes aimed at simplifying the relationships between the private sector and the government. Apart from the above, it is highlighted that the institutional factor aligned with the government strategic goals affects the formation and legitimation of public-private partnership markets. The study also provides argument that through the models of public-private partnerships the public sector can benefit, in the first place by utilizing resources of private companies, thus fostering further infrastructure development and raising the effectiveness and efficiency of road transport services market. The findings reveal that the purpose of public-private partnership programs institutionalization in the sector of road transport services is to enhance government motivation to attract private investment and offer new road network services based on public-private partnership contracts which will contribute to ensure the quality of road services.


2007 ◽  
Vol 32 (2) ◽  
pp. 53-60 ◽  
Author(s):  
Edward Murray

While the world has changed dramatically in the last five decades or so, transportation has not been able to keep pace with the overall development. However, in order to ensure prosperity of a country or a state, it is imperative that the ability to move people and products must improve. This paper examines the status of transportation infrastructure and its funding in the State of Washington, USA and suggests some new approaches towards public-private partnership (PPP) in the area. In the process, the success and some of the challenges of PPP are also discussed. In the US, traditionally, people were not charged direct tax such as a toll for using the roads, the primary mode of financing transportation being gas tax. The new sources of revenue collection being developed include: Specific roadway pricing Mileage-based user fees Real-time variable rate roadway pricing. Traditionally, in the US, the public sector shouldered the main responsibility for managing transportation�acquire right-of-way (ROW), design, finance, operate, own, and maintain while the private sector was only allowed to build roads following all the regulation and permits introduced by the government. The reformed PPP model awards ‘design-build’ contracts on a competitive ‘best-value’ basis instead of the conventional ‘low-bid’ basis and thus turn over the design build responsibility to the private sector leaving with the government the financing and maintenance of the roads. The idea is to give road to everybody while allowing the private sector to earn some profit and the public sector to save some money. However, PPP could face a problem if: the traffic and revenue estimates are wrong traffic and revenue risks are taken by private sector but at a huge price construction costs are underestimated the people do not accept the proposition the PPP legislation is not favourable. For any infrastructure project such as transportation to succeed, what is most critical is a set of factors including feasibility, essentiality, reliable revenue forecasts, collateral, credibility, political stability, and transparency. Above all, the government has the responsibility to all its citizens while the private sector is accountable to its stockholders and business partners. What is therefore important is to see how the two parties meet their obligations while building a suitable transportation infrastructure.


2018 ◽  
Vol 8 (2) ◽  
pp. 141-149
Author(s):  
Mary Ismowati

Bandung city government's desire to work on various projects with a mechanism of Public Private Partnerships ( PPP ) due to limitations of the government for the city of Bandung well within the capability of funding, human resources , technological capabilities , and so forth . This is done to help realize the " Bandung Champion " . City government 's desire based on the opinion the Government is obliged to fulfill its social responsibility to the community economy , and to ensure that public services can be done to the entire community.The aim in this paper to analyze the cooperation scheme of Public Private Partnerships ( PPP ) what is right for the city government The method used in this paper is a descriptive study with technical literature , ie finding relevant theory reference to the case or the problems found , namely the problem of public private partnership cooperation city government with the private sector in the provision of public services . This type of data is secondary data obtained from the documentation media and internet and also sourced from books and other literature sources that support the discussion in this study.In order for the cooperation of public private partnership city government with the private sector managed a few things that must be considered: this cooperation must be strategically important for both parties , this cooperation are complementary rather than mutually competence , openness to information in both parties , and should this cooperation raises link although the true integration of different cultures . Mutual trust is the main thing. Forms of cooperation of public private partnership with the city government to the private sector in the form of contract maintenance , Leasing ( Lease ) or Contract of Build- Operate- Transfer / BOT or Build Operate and Transfer OwnedIt was concluded that the Public -Private Partnership cooperation is not always a bad connotation and in order to succeed , a lot of terms and conditions must be met . It is intended that the government gets the best results , people also get results commensurate , ie welfare . Thus , the spirit of Public -Private Partnership is to strengthen the government or the public service which is considered inefficient 


2016 ◽  
Vol 2016 ◽  
pp. 1-8 ◽  
Author(s):  
Congdong Li ◽  
Xiaoli Li ◽  
Yu Wang

The public can directly or indirectly participate in the PPP (public-private partnership) projects and then has an impact on the project profit and public or private behavior. To explore the influence of the public participation of the PPP projects supervision behavior, this paper analyzes the mutual evolutionary regularity of the private sector and government supervision department and the influence of public participation level on public and private behavior based on evolutionary game theory. The results show that the supervision strategy is not chosen when the supervision cost of government supervision department is greater than the supervision benefit; it can make private sector consciously provide the high-quality public products/services with the improvement of public participation level. Therefore, the government should reduce the cost of public participation and improve the public participation level and influence through the application of the Internet, big data, and other advanced technologies, in order to restrain the behavior of the private sector and improve the supervision efficiency.


2014 ◽  
Vol 4 (3) ◽  
pp. 238-250 ◽  
Author(s):  
Suhaiza Ismail ◽  
Fatimah Azzahra Haris

Purpose – The purpose of this paper is to study two objectives. First, it intends to scrutinize the challenges in implementing Public Private Partnership (PPP) by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the government and the private sector pertaining to the hindrance factors. Design/methodology/approach – A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the constraints of PPP implementation in Malaysia. A total of 122 usable responses were obtained, which were analysed using Statistical Package for Social Sciences software. The mean score and mean score ranking were used to examine the importance of the hindrance factors based on the overall responses as well as on the respective responses of the public and the private sectors. An independent sample t-test was used to examine the differences in the perceptions between the two sectors. Findings – The overall results show that “lengthy delays in negotiation”, “lack of government guidelines and procedures on PPP”, “higher charge to direct users”, “lengthy delays because of political debate” and “confusion over government objectives and evaluation criteria” are the top five constraints for adopting PPP in Malaysia. In terms of the differences in the perceptions between the public and private sector groups, the statistical test results indicate that there are only significant differences in the perceptions for two hindrance factors. Originality/value – The paper contributes to the existing literature on PPP, which is currently limited, by focusing on the challenges of implementing PPP in a developing country (i.e. Malaysia). More importantly, this paper provides evidence concerning the differences in the opinion of two key players (i.e. the government and the private sector) on the PPP hindrance factors.


2021 ◽  
pp. 01-08
Author(s):  
Bijoya Roy

This review of the government’s policy during the pandemic flags a number of ethical concerns. The private healthcare sector’s treatment of Covid-19 patients has generated mistrust and anger. However, the government has not held it accountable and instead commercialisation has subverted the pandemic needs. Government hospitals weakened by decades of cuts are exposed to internal reorganisation of services through the public-private partnership mechanism, a neoliberal policy that has persisted through the pandemic. There is a need to re-examine the government’s policy reliance on scaling-up coverage through the private sector in the pandemic and after.


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