Impact Statement

Enabled effective planning of sustainable RWS projects

Client needs

Water supply utilities in Indonesia have limited water availability which threatens service delivery. To address this, the Directorate of Drinking Water, Ministry of Public Works and Housing, Indonesia, with KIAT’s (Indonesia-Australia Partnership) support, prioritised development of more reliable regional water supply systems (RWS) by enhancing governance, regulation, and accountability. This required establishing a robust governance structure and financing framework for improving the sustainability of future regional water supply systems.

How Crisil helped

• Developed innovative institutional approaches to establish a robust governance structure for RWS schemes, alongside regulatory oversight enhancements
• Drafted guidelines and template for bulk water tariff determination
• Designed framework for safeguarding financial interests of the RWS utility, including a framework for program-based funding for RWS projects
• Developed comprehensive guidelines for implementation of RWS projects outlining aspects such as overall RWS development process, institutional options for RWS entity, and options for strengthening regulatory oversight functions.

Outcome of our work

The guidelines enabled decision makers to effectively plan and implement sustainable RWS projects catering to the growing demand. The guidelines have been endorsed by the Directorate of Drinking Water  for formalisation.

Additional reading

https://www.crisil.com/en/home/our-analysis/crisil-blogs/2022/03/giving-regional-water-supply-systems-in-indonesia-a-new-lease-of-life.html