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Indonesia: Metropolitan Sanitation Management

Investment Project
Project Name
Metropolitan Sanitation Management Investment Project
Project Number
43251-025
Country / Economy
Indonesia
Project Status
Active
Project Type / Modality of Assistance
Grant
Loan
Source of Funding / Amount
Grant: Metropolitan Sanitation Management Investment Project
Source Amount

Government of Australia US$ 48.83 million

Loan 3123-INO: Metropolitan Sanitation Management Investment Project

Source Amount

Ordinary capital resources US$ 80.00 million

Loan 8280-INO: Metropolitan Sanitation Management Investment Project

Source Amount

ASEAN Infrastructure Fund US$ 40.00 million

Strategic Agendas
Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change
Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Health / Disease control of communicable disease

Water and other urban infrastructure and services / Urban sewerage

Gender
Effective gender mainstreaming
Description
The Project will provide improved urban wastewater services in the cities of Cimahi, Jambi, Makassar, Palembang, and Pekanbaru in the
Republic of Indonesia. These cities currently lack any piped sewerage and wastewater treatment facilities. The Project will respond to
the needs of urban communities, including low-income households, by constructing new separate sewerage systems and wastewater
treatment plants (WWTPs), setting up local wastewater infrastructure management institutions and strengthening the relevant
departments of respective regional governments.
Project Rationale and Linkage to Country/Regional Strategy
Indonesia has one of the lowest coverage rates of conventional off-site urban sewerage in Asia. Only 11 out of its 330 cities have partial
sewerage systems with only 2% of the national urban population connected to central wastewater treatment plants. The remaining
urban population depends on poorly constructed and maintained septic tanks and unlined pit latrines with leachates penetrating the
aquifers. Some 80% of greywater drains directly to surface waters. The present sanitation services are inadequate and those that exist
are not integrated, due to the lack of regulations and enforcement resulting in limited desludging of septic tanks, inadequate septage
treatment facilities and a fragmented operational responsibility. Improved access to safe water and basic sanitation is part of the
Government of Indonesia s effort to achieve its 2015 Millennium Development Goal (MDG) targets . Whilst reports suggest good
progress is achieved with sanitation, in practice, the facilities now available are substandard and rely on septage removal and treatment
facilities which are unsustainable. As a result, there is significant environmental pollution, widespread contamination of surface and
ground water with the associated spread of water-related diseases and high infant mortality . The inadequacies of this sanitation
systems and resulting environmental and health impacts equate to economic opportunity losses of approximately $5.6 billion annually,
equaling 2.3% of the country s gross domestic product. These issues can be solved by the introduction of (i) public sewerage and
wastewater treatment facilities; (ii) an institutional framework for their effective operation and maintenance (O&M); and (iii) by public
awareness of good sanitation practices.
Impact
Reduced pollutant discharges to the environment In the participating cities.

Project Outcome
Description of Outcome
Increased connection of the population to improved wastewater services in the participating cities.

Progress Toward Outcome

ADB approved a minor change on outcome indicator description in April 2024 as follows: 26,100 domestic property connections (serving
130,500 persons) and 6,200 commercial property connections identified and have access to be connected to the central sewerage
system. By the closing date, a total of 34,732 potential domestic property connections (133.07% against the target) and 10,453
potential commercial property connections (168.59% against the target) are identified in the sewer service area. As many as 469
domestic property connections (64 connections serve poor households for which 34 households are female-headed households) and 69
commercial property connections are installed and connected to the central sewerage system. 293 community-based sanitation system
completed (above the target at 64 systems). A total of 818,227 households (HHs) are served through desludging service (above the
target 121,000 HHs). It is concluded that all outcome indicators are achieved.

Implementation Progress
Description of Project Outputs
Infrastructure development for Off-Site Wastewater Systems completed.

Project Implementation Support institutionalized.

Status of Implementation Progress (Outputs, Activities, and Issues)

All project output indicators are achieved. A total of 191.33 km of sewerage network were installed in Jambi, Makassar, and Pekanbaru
(above the target at 159.4 km). WWTPs were built in three cities, with the maximum capacity as designed: 7.6 MLD in Jambi, 16 MLB in
Makassar, and 8.1 MLD in Pekanbaru. 39.76% of construction workers are local (above the target at 35%). Wastewater tariff regulation
indicate that poor households and households headed by women are classified as beneficiaries with the lowest tariff. Public consultation
on sewerage connections was held with women accounting for 36% of participants (above the target 30%). Gender-disaggregated
indicators have been integrated in the project performance monitoring system an regularly monitored through gender action plan
regular monitoring. Women representation in the management positions is 63% in EA, 33% in IA, and 27% in the Unit Pelaksana Teknis
Daerah (UPTD). In aggregate, the increase of women representation rate meets the target at 10%. Capacity building activities on
hygiene promotion, education, planning and participatory monitoring completed with 36.7% participation of women (above the target at
30%).
Geographical Location

Safeguard Categories
Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C
Summary of Environmental and Social Aspects
Environmental Aspects
The Initial Environmental Examination (IEE) for Makassar, Jambi and Pekanbaru have been submitted by the EA, secured ADB approval
and disclosed on the ADB's website. The environmental permits have been issued on 28 December 2018 for Pekanbaru sewerage
package; 20 December 2019 for the Jambi WWTP and sewerage packages; 30 January 2020 for the Makassar WWTP and sewerage
packages; and 5 May 2020 for Pekanbaru WWTP package. The Construction Environmental Management Plan (CEMP) reports for all on-
going works have been prepared as well. Semi-annual monitoring report was prepared periodically by the EA to record the
implementation of required environmental safeguard.
Involuntary Resettlement
No involuntary resettlement involved in this project as the government already acquired necessary land for the construction of the
WWTPs and pumping station. The detail of land acquisition process has been reported in the semi-annual monitoring report which being
submitted by EA to ADB periodically. Semi-annual monitoring report is prepared periodically by the EA to record the implementation of
required social safeguard.
Indigenous Peoples
There were no indigenous peoples affected by the subprojects.

Stakeholder Communication, Participation, and Consultation

During Project Design
The Ministry of Public Works and Housing, through the Directorate General of Human Settlements (DGHS), is the EA of the Project.
DGHS to establish a Central Project Management Unit (CPMU) composed of technical and administrative staff. A Project Implementation
Unit (PIU) to be established at the provincial level (Balai/working unit) to manage project activities and monitor the implementation
progress. A consultant team based in Jakarta and also in each city are hired to assist the EA, CPMU, LPMUs and PIUs to manage and
monitor the implementation of the project. The consultant team is also responsible for facilitating communication and consultation with
the community to ensure that the households within targeted area agree to be connected to the centralized sanitation system
facilitated under this project as beneficiaries.
During Project Implementation
The stakeholder participation during implementation was in accordance with the project design. However, during major change in 2016,
the Cimahi city was taken out from the project due to insufficient budget. Thus, the PIUs for the project were only established in three
provinces namely Riau Province (for Pekanbaru city), Jambi province (for Jambi city), and South Sulawesi (for Makassar city).
Communication and consultation were carried out as agreed during project design.

Contact
Responsible ADB Officer
Carolina, Anastasia
Responsible ADB Department
Sectors Group
Responsible ADB Division
Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Directorate General of Human Settlements, Ministry of Public Works and Housing

Timetable
Concept Clearance
13 Dec 2011
Fact Finding
23 Apr 2013 to 03 May 2013
MRM
04 Jul 2013
Approval
31 Mar 2014
Last Review Mission
-
Last PDS Update
24 Oct 2024
Funding

Loan 3123-INO
Milestones
Approval Signing Date Effectivity Date Closing

Original Revised Actual

31 Mar 2014 13 May 2014 09 Jul 2014 31 Dec 2020 30 Jun 2024 -

Financing Plan
Total (Amount in US$ million)
Project Cost 159.20
ADB 80.00
Counterpart 79.20
Cofinancing 0.00

Loan Utilization
Date ADB Others Net Percentage

Cumulative Contract Awards 24 Oct 2024 78.38 0.00 99%

Cumulative Disbursements 24 Oct 2024 77.89 0.00 98%

Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Unsatisfactory

Loan 8280-INO
Milestones
Approval Signing Date Effectivity Date Closing

Original Revised Actual

31 Mar 2014 13 May 2014 09 Jul 2014 31 Dec 2020 30 Jun 2024 -

Financing Plan
Total (Amount in US$ million)
Project Cost 40.00
ADB 0.00
Counterpart 0.00
Cofinancing 40.00

Loan Utilization
Date ADB Others Net Percentage

Cumulative Contract Awards 24 Oct 2024 0.00 33.62 95%

Cumulative Disbursements 24 Oct 2024 0.00 33.47 94%

Project Page https://www.adb.org//projects/43251-025/main

Request for Information http://www.adb.org/forms/request-information-form?subject=43251-025
Date Generated 06 January 2025

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