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Thursday, April 15, 2010

Close-up of tap waterImage via Wikipedia
From Manilla Bulettin:
The Indonesian water system is also marked by high system loss, decades of under-investment in the water infrastructure, and a poor regulatory system. Rivera explained that "they are not anchored on cost reflective tariff so... it's very difficult to invite the private sector.
However, he said there is a lot of potential in Indonesia since it has a larger population of 200 million and it is growing faster than the Philippines. Indonesia has an emerging metropolis and its metropolitan areas are much bigger than those in the Philippines.
"The key to sustaining these areas would be water infrastructure," noted Rivera adding that it will take one to two years before a project can start development.
As for cost, it will require investments of $30 million to $50 million if its a bulk water supply project. If it's a distribution project, the cost can be much bigger because there is a need to replace the pipes.

 Another PPP/PSP. What do you think?
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