The governance of the jakarta water post ppp rn
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Transcript of The governance of the jakarta water post ppp rn
THE GOVERNANCE OF THE JAKARTA WATER POST PPP: THE ROLE OF THE REGULATORY BODY
Dr. Riant NugrohoLecturer of the University of Malaya (2010-201), Indonesia Defense University (2011-now)Board Member of the Jakarta Water Supply Regulatory Body, Jakarta Member of Steering Committee of Global Committee for “1% 7Cs” of MDGMember of Steering Committee of World Alliance of Cities Against Poverty (WACAP)
The World Water Week, 23 August 2011 StockholmStockholm International Water Institute (SIWI)
Jakarta Water Supply
• Policy: 25 years of full concession to the private sector• Term : 1998-2022• Method: Full cost recovery• West concession (PAM LYONNAISE JAYA):� Prior to July 2006 : Suez Environtment formerly Ondeo Service
(majority) and PT. and PT. Bangun Tjipta Sarana.� After July 2006 : Suez Environtment (majority), PT Astratel
Nusantara, Citigroup Financial Products
• East concession (AETRA AIR JAKARTA)• Prior to 2007 : Thames Water Overseas Limited (majority) and PT. Tera
Meta Phora• 2007 : Acuatico Pte. Ltd (majority) and PT. Alberta Utilities
Ciliwung River
Java Sea
Jakarta East AreaAETRA
Jakarta West AreaPALYJA
Performance (2010)
Technical target Palyja Aetra
1. Water loss (NRW) 42.60% 50.17%
2. Production 169.79 million m3 272.83 million m3
3. Connection 419.776 385.377
4. Volume sold 147.27 million m3 135.95 million m3
5. Coverage ratio 64.66% 59.98%
Governance: about modality
• “governance is the institutional capacity of public organizations to provide the public and other goods demanded by a country’s citizens or their representatives in an effective, transparent, impartial, and accountable manner, subject to resource constraints” (The World Bank, 2000).
Pre: PPP governance
Post (existing) : PPP
Jakarta Water Supply Regulatory Body (JWSRB)
• Founded in Jakarta, November 2001• Mission : to maintain balanced interest between public, the cooperating parties and
Government of Jakarta City to undertake water service provision in the DKI Jakarta Province
• Vision : to originate the regulatory body as an independent, professional, efficient, and accountable institution functioned as a mediator, a facilitator, and a regulator to undertake water service provision in the DKI Jakarta Province.
• Governance : 1. 5 Member of The Board:
a) Chairperson : Irzal Djamal, M.Eng.b) Technical : Dr. Firdaus Alic) Finance : Agus Kretarto, MBAd) Legal : Rusdiati Utami, SHe) Customer & Communication : Dr. Riant Nugroho
2. Independent & impartial a) Publicly selectedb) No government officer and member of the related partiesc) Accountable to the Governor, but no government intervention
3. Board-collegial decission making4. 3 years of the term of office of each member
PE
L
A YA N A N A I RM I N
UM
PE
L
A YA N A N A I RM I N
UM
JWSRB in hierarchical structure
Chairperson
Member 3 Member2 Member 4
Assistants Secretariat
Member 1
(Secretary)
Assistants AssistantsAssistants
Governor of
Jakarta
Jakarta Authority
Executive & Local
Parliament• Technical expertise• Financial expertise• Legal expertise• Customer expertise
JWSRB in the “center-less model” of governance
Chairperson
Member
1 (Secretary)
Member
2
Member
3
Member
4
Consultants
Macro governance, still center-less
Main tasks : Water (Good) Governance
1. Oversight the concession 2. Setting tariff policy (recommendation)3. Conflict mediation
� Among PAM and private partners (operators)� Among operators and customers� Among parties and other parties
4. Developing and Promoting “WGG”
1. Customer small scale meeting
2. Customer annual meeting
3. Stakeholders annual meeting
5. Monthly Working Group Meeting
6. Transparency : Performance (and Promise)
Five Yearly Rebasing : facilitator, mediator
1998 2022
Jakarta water services
provided by Local State
Owned Enterprise
(LSOE/PAM Jaya)
PPP driven by central
government and supported by
the international financial
institution : 25 years of a full
concession of water servicesRebasing process : 5 years of the
new/revised target and water charge –and
therefore water tariff
2002 2007 2012 20171998-1999 :
Economic
crises
Policy Decision before the establishment of JWSRB
PAM Jakarta
Palyja Aetra
Jakarta Authority
(Governor)
1. Tariff proposal
2. Tariff proposal
3. New tariff
4. New tariff4. New tariff
Customer
5. New tariff
Policy Decision post-JWSRB’s establishment
PAM Jakarta
Palyja Aetra
Jakarta Authority
(Governor)
1. Tariff proposal
2.Tariff
proposal
3a. Financial and
performance assessment
7. New tariff7. New tariff
Customer
8. New tariff
JWRB Customer 3b. Public
assessment
4a. YES: Promote
the new tariff
4b. NO: Not
promote the
new tariff
5a.YES: agree for
the new tariff
5b. NO: not agree the
proposal of the new tariff
6. Jakarta
Authority
decision
Policy Guideline for Tariff Setting Proposal
Performance Financial
requirement
Service quality
improvement*
Affordability Judgment
1 Y Y Y Y Confirmed: new tariff proposed
2 Y Y Y N Proposed new tariff
3 Y N Y Y Proposed new tariff
4 Y Y N Y Proposed new tariff
5 Y Y N N Proposed new tariff
6 Y N N N Considering to propose new tariff
7 Y N Y N Considering to propose new tariff
8 Y N N Y Considering to propose new tariff
9 N Y N Y Not to propose new tariff
10 N Y Y Y Not to propose new tariff
11 N Y Y N Not to propose new tariff
12 N N Y Y Not to propose new tariff
13 N Y N N Confirmed: Not to propose new tariff
14 N N Y N Confirmed: Not to propose new tariff
15 N N N Y Confirmed: Not to propose new tariff
16 N N N N Confirmed: Not to propose new tariff
* Survey on perception
Probability (opportunity) for each option
no option probability of option
1 Confirmed: new tariff proposed 1/16
2 Proposed new tariff 4/16
3 Considering to propose new tariff 3/16
4 Not to propose new tariff 4/16
5 Confirmed: Not to propose new tariff 4/16
Conclusion
• PPP (public private partnership) policy implementation need independent institutions as oversight body to assure its performance: regulatory body
• Professionalism, independency, and impartiality
• Jakarta water good governance1. Effectiveness : performance base cooperation 2. Accountability : revise the signed contract3. Transparency : Jakarta Water Voice4. Impartiality : conflict resolution, proposal for policy improvement
Thank you