Case Study—PDAM Tirtanadi, Indonesia

PDAM Tirtanadi, Indonesia Context • Low-income country • Aggregation covering urban areas • Low level of water performance Purpose Performance, professionalization, economic efficiency Scope WSS functions and services Scale • Administrative boundaries • Localities covered: 7 for water and 2 for wastewater • Population covered: 1,803,917 inhabitants for water and 83,440 for wastewater • Coverage: 20% for water and 4% for wastewater • Connections: 360,783 for water and 16,688 for wastewater Process Bottom-up, voluntary, and incentivized Governance • Delegated (25 years) • Public company • Decision making: regular meetings between PDAM Tirtanadi and local water utilities • Asset transfer: at the end of the 25-year agreement, all assets will be returned to the respective utilities • Liability: liabilities and debts occurring after signature of cooperation agreement are taken over by PDAM Tirtanadi • Staff transfer: part of the staff was transferred • Clear entry and exit rules Outcome Increased performance and costs Findings Technical and management skills from PDAM Tirtanadi are to be transferred to other utilities through cooperation; limited staff transfer occurred (40 employees from PDAM Tirta Deli as well as employees from other local water utilities); PDAM Tirtanadi reached cost recovery in 2013, but further tariff increases are needed to fund investment needs and maintain financial sustainability