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CDIA Assist Cities of Balikpapan and Tangerang to Link Them to World Bank Financing

February 10, 2014
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CDIA team meeting with representatives from World Bank and Tangerang Solid Waste Management Services at a recycling center at Rawa Kucing Landfill, Tangerang

CDIA team meeting with representatives from World Bank and Tangerang Solid Waste Management Services at a recycling center at Rawa Kucing Landfill, Tangerang

Based on feasibility work carried out by the Indonesian cities of Balikpapan and Tangerang , CDIA supported these two cities to qualify for a US$100 million World Bank loan for Solid Waste Management. This implied having to upgrade the domestically prepared feasibility studies in such a way that World Bank requirements were met.

The CDIA team worked in both cities simultaneously and focused on identifying infrastructure investments required to improve the entire solid waste management chain from collection, transportation to treatment and final disposal. Infrastructure investments required were identified as US$91.1 M and US$53.6 M for Tangerang and Balikpapan, respectively.

Workers from Balikpapan Solid Waste Management Services at a transfer station. CDIA identified investments required to make the transfer stations work more efficient.

Workers from Balikpapan Solid Waste Management Services at a transfer station. CDIA identified investments required to make the transfer stations work more efficient.

Besides financing through on-ward granting of the World Bank loan, the cities were supported to identify additional possible down-stream financing options.

To ensure that the investments were pro-poor, the consultants started with field visits to understand how waste is collected, transported, and finally treated and disposed of. The proposed infrastructure investments incorporate options to further integrate the informal scavengers in the formal solid waste management chain.

Rawa Kucing Landfill in Tangerang for which CDIA identified investments required to improve the quality and the lifespan of the landfill

Rawa Kucing Landfill in Tangerang for which CDIA identified investments required to improve the quality and the lifespan of the landfill

According to Joris van Etten, CDIA Country Manager for Indonesia “While the nature of the assignment was a bit different from the usual as we provide “post feasibility support” rather than “pre-feasibility support,” the assignment very much followed CDIA’s logic of linking cities to financing and helping cities to prepare better and bankable projects.”

Categories: Latest Information, Linking Cities to Finance

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