Tuesday, July 16, 2024

Japan to aid waste management in West Java through JICA project

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Japan has announced its commitment to assist West Java in enhancing its waste management capabilities through a technical cooperation project with the Japan International Cooperation Agency (JICA).

Senior Advisor to Japan’s Minister of the Environment, Ono Hiroshi, confirmed Japan’s commitment to bolster waste management and circular economy policies in West Java.

“Japan is committed to improving waste management policies and capacities, as well as promoting a circular economy in Indonesia, including in West Java,” Hiroshi said as quoted by Antara on Saturday, June 29, 2024.

Hiroshi welcomed the Cooperation Agreement (PKS) for the provision of infrastructure and the management of the Regional Waste Processing and Final Disposal Site (TPPAS) in Legok Nangka.

This agreement was signed by the West Java Provincial Administration, PT Jabar Environmental Solutions (JES), and PT Indonesia Infrastructure Guarantee Fund (PII) at the West Java Gubernatorial Office, Gedung Sate, in Bandung recently.

Japan has expressed serious intent to maximally support the development of the TPPAS Regional Legok Nangka project, which is one of three key projects under the Asia Zero Emission Community (AZEC) initiative.

Japan’s involvement in developing waste management capacity in West Java also extends to the Bekapur waste management project (Bekasi, Karawang, and Purwakarta), another priority project of AZEC.

“Japan supports the feasibility study (FS) of the Bekapur project. I hope this project will progress quickly, similar to the current development of TPPAS Regional Legok Nangka,” Hiroshi said.

The Cooperation Agreement for the provision of infrastructure and management of TPPAS Regional Legok Nangka was signed by three parties: the West Java Provincial Administration, PT Jabar Environmental Solutions (JES), and PT Indonesia Infrastructure Guarantee Fund (PII).

PT JES, a consortium comprising Sumitomo Corporation, Hitachi Zosen, and Energia Prima Nusantara, is tasked with constructing and managing the waste processing site according to the agreed quantity and quality standards.

The agreement outlines a 20-year concession period starting from the Commercial Operation Date, expected in February 2029. It also includes provisions for tipping fees during the concession period and the sale of electricity generated by the facility.

Furthermore, the agreement with PT PII serves as a guarantee in case of any issues between the parties. For instance, if there is a delay in the payment of tipping fees, PII will cover the payment, with the West Java Provincial Government subsequently owing PII. PT JES and PT PII have signed a similar agreement for project guarantees.

The TPPAS Regional Legok Nangka project involves an investment of approximately Rp4 trillion. The central government supports its construction with fiscal contributions through a Viability Gap Fund (VGF) from the Ministry of Finance, amounting to Rp1.3 trillion (US$79.5 million).

This collaborative effort underscores the significant international partnership aimed at improving waste management infrastructure in West Java, ultimately contributing to environmental sustainability and public health.

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