Ministry of Finance of Republic of Indonesia : SPAM Umbulan Reached Financial Closing

Jakarta, 04/01/2017 MoF - The government and business entity managed to accelerate one of National Strategic Project i.e. Water Supply System (SPAM) of Umbulan which was conducted using Public Private Partnership (KPBU) Scheme, supported by East Java government as Contracting Agency (PJPK).

Six months earlier of the target, SPAM Umbulan reached financial closing on Friday (30/12) ago. 'The government is very grateful for what we have done as the result of good cooperation. My gratitude and high appreciation for it, 'said Coordinating Minister for Economic Affairs Darmin Nasution, as Chairman of Committee for Acceleration of Priority Infrastructure Delivery (KPPIP).

This project is supported by the government in terms of Viability Gap Funding (VGF) worth of investments reached IDR4.51 trillion. The project utilizes water resources located in Pasuruan with a capacity of 4,000 liter of water per second. It will be channelled to Pasuruan city, Pasuruan regency, Sidoarjo regency, Surabaya and Gresik regency.

Darmin stated that private involvement is important, particularly for the similar projects. 'We want to invite local government to purpose this kind of project. We cannot merely depend on State Budget and Local Government Budget. The private sector should be involved in the project's development, especially the basic service project,' he said, as quoted from CMEA site on Wednesday (04/01).(as/rsa)