Let the Private Sector Clean Up City’s Trash

If there was any doubt that a radical rethink is needed for the provision of public facilities in Jakarta, than the fact that nearly 50 percent of the city’s garbage trucks will be inoperable in two years’ time should prove a convincing argument.

Eko Bharuna , the head of the city’s sanitation office, said that in 2010, 201 of the city’s 797 garbage trucks were already unusable and that number is expected to rise to 367 trucks by 2014.

He added that most of the trucks were at least 15 years old, which is a bad sign in a city that currently produces some 6,500 tons of waste a day.

If things stay as there are, Jakarta’s residents better brace themselves for a huge stink.

And the amount of garbage the city is churning out daily will only rise along with the rapid rise of the metropolis’s population. There is a certain urgency to rapidly deal with the prospect of having to handle rising amounts of waste with dwindling resources.

Thankfully, however, the city government is adopting a fresh approach in an effort to solve its garbage problem.

Eko said that in the future, the city sanitation office would only act as a regulator while the operator of the city’s waste transportation as well as processing services will go into the hands of the private sector.

But the government should also bear in mind that garbage disposal and processing is a public service and that it should not try to make a profit when handing over the business to the private sector. Private businesses are there to make profit, but in this case, profits should also be restricted so as not to burden the public purse.

The government has ample time to prepare for this well ahead. It still has hundreds of garbage trucks in operation, for at least another couple of years.

It might have taken some time to get to this stage but this move is highly welcome. The government should not be in business and where the private sector can do a better job, it should hand over the reins.

The government should focus on ensuring that regulations are business friendly and not too cumbersome but leave the private sector to manage such facilities efficiently and effectively.

Editorial: Let the Private Sector Clean Up City’s Trash | The Jakarta Globe.

Government to hold bid towards 17 infrastructure projects, valuing IDR 89 trillion

JAKARTA: About 17 infrastructure projects, employing public private partnership and valuing IDR89 trillion are ready to be transacted.

Those 17 projects are parts of 79 infrastructure projects being included in Project Plan Book 2011, valuing US$53 billion, said Director for Public Private Partnership Development, Bastary Pandji Indra.

“From the documentation preparatory stages until now, there have been 17 infrastructure projects that will be transacted with public-private partnership scheme, costing nearly IDR100 trillion. This is a relatively significant amount of investment,” he said in a release sent to Bisnis.

Those projects include Central Java Coal Fired System Power Plant, valuing US$3 billion.

Second project happens to be Puruk Cahu-Bangkuang Coal Railway (US$2.1 billion). Government is now finalizing agreement drafts with investor and coal operator merely to complete the auction documents.

The third project, Umbulan Water Supply (US$204.2 million) has been in pre-qualification phase (PQ) and is now undergoing auction documentation. Probably, within the next two-three months, the auction document will be ready and investors joining pre-qualification phase will submit its bids.

Fourth, Maros Water Supply (US$12.9 million) the PQ has began on 16 August and the PQ documentation will be submitted by 19 October 2011. “Until now there are 16 investors having PQ documentation,” he said.

The fifth project is US$4 billion toll road project. In this project, investors had proposed their offering.

Next, Surabaya Solid Waste (US$100 million), the PQ documentation had been submitted and there are four shortlisted companies as the bidders. “This project is directly handled by provincial government of Surabaya,” he said.

Another project is Southern Bali Water Supply (US$43.5 million), a Korea based consortium has submitted its bidding to Bali provincial government.

The eight project happens to be Bandung Solid Waste (US$100 million), handled directly by Bandung provinicial government and the pre qualification phase will be conducted by the upcoming October.

The ninth project is Kalibaru Port, costing IDR11 trillion. It happens to be an unsolicited project and operated by Pelindo II.

Next is Sampah Solo project, valuing US$30 million and has been completed Feasibility Study and will enter transaction phase.

The eleventh project is Batam Solid Waste, valuing US$100 million. This project will undergo second bidding process as it had experienced a bidding process previously yet the private company failed to complete the project and finally resigned. “Thus, it will undertake second bidding.”

Besides, we are also informed that there will be intermediate transfer facility (ITF) in Jakarta. This facility will be used as final waste container. This project will be auctioned by October,” he resumed.

Government to hold bid towards 17 infrastructure projects, valuing IDR89 trillion – Bisnis.com.