JAKARTA - West Java Provincial Government (Pemdaprov) accelerates the completion of the construction of the Legoknangka Regional TTPAS in Bandung Regency by signing a financing agreement with the Indonesian Ministry of Finance, in Jakarta, Friday (3/5/19) night.
West Java Regional Secretary Iwa Karniwa along with the Director General of Financing and Risk Management at the Ministry of Finance (Director General of PPR-Ministry of Finance) Luki Alfirman signed the Master Agreement for Provision of Project Preparation and Companion Facilities at PPP Projects for Legoknangka Regional Waste Processing and Processing Sites, in Ruang Auditorium of the Directorate General of Financing and Risk Management at the Ministry of Finance, Frans Seda Building 1st Floor, Jalan Dr. Wahidin No. 1 Central Jakarta.
According to Iwa, the signing of the master agreement was an extraordinary support from the Ministry of Finance to accelerate the completion of the TPPAS Legoknangka project.
According to him, the PPR-Ministry of Finance assesses that TPPAS Legoknangka is very important to be operated immediately, because TPPAS is planned to implement the waste to energy method, or turn waste into an electric power source.
Initially, said Iwa, the construction of TPPAS Legoknangka was more ideal using a business to business pattern. However, because it is not possible, it was decided to use the PPP pattern or Government Cooperation with the Business Entity.
"This is an extraordinary support from the Ministry of Finance through the Director General of PPR-Ministry of Finance, where the TPPAS Regional Legoknangka is planned to be waste to energy," said Iwa.
"In terms of management, it is more optimistic business to business. It turns out that it is still not possible, so we will try to do it with the PPP pattern. Now the document assistance is being prepared, we are currently making the agreement," he explained.
Iwa hopes that the TPPAS Legoknangka will soon be completed and start operating in 2022 as many regions expect. Thus, later Legoknangka is able to process waste from six regencies / cities in Bandung Raya, namely Bandung City, West Bandung Regency, Bandung Regency, Cimahi City, Sumedang Regency and part of Garut Regency.
"Our hope is to reach the financial close in June 2022, so that it is expected that 2021 or 2022 can be completed and can serve six municipal districts in Greater Bandung," Iwa hoped.
In the same place, Director General of PPR-Ministry of Finance Luky Alfirman stressed, the important point of the TPPAS Legoknangka is contained in Presidential Regulation No. 35 of 2018 concerning the Acceleration of the Construction of Waste Processing Installation into Eco-friendly Technology-Based Electric Energy.
In the Perpres it is written, in addition to Legoknangka, there are 11 other cities planned to have TPPAS, including the City of Bekasi, the City of Surabaya, the City of Makassar, the City of Palembang, and the City of Manado.
"The Legoknangka Regional TPPAS PPP Project is one of the projects included in the waste processing program in Perpres No. 35 of 2018," Luky said.
Luky added, the Outline Business Case (OBC) document for the Legoknangka project was prepared and facilitated by the Government Goods / Services Procurement Policy Agency (LKPP), with the assistance of consultants from Price Waterhouse Coopers (PWC) and Hermawan Juniarto (legal consultant). (*)