PDAM Tirtanadi, the Water Corporation of the Province of North Sumatra has awarded SUEZ the contract for the extension of the drinking water production plant in Medan, the third largest city in Indonesia. The extension of this BOT (Build-Operate-Transfer) contract for a period of 25 years and EUR191 million, includes the funding, the building, the operation and the transfer of two additional water production units for the Medan plant. This agreement is in line with SUEZ's international growth dynamic; it strengthens the Group's positioning in Indonesia and marks a new step in the drinking water supply in the region.
This project will improve access to drinking water for the fast-growing population of the city of Medan and will contribute to local authorities' goal of supplying more than 84% of the population with drinking water by 2020, as compared with 73.2% today.
In 2001, SUEZ finalized the first phase of the Medan drinking water production plant building, which the Group has been operating since. With a production capacity of 43,200 m3/day, this plant supplies drinking water to 150,000 inhabitants of the North Sumatra Province capital. The extension project of this plant will bring production up to 77,760 m3/day.
The contract includes the funding and the installation of two degremont® compact drinking water production units (UCD®). This modular solution increases production in a fast and simple manner, in compliance with the applicable regulations. Each unit is made up of interchangeable modules for reduced civil engineering costs and rapid installation with no impact on existing structures. The system provides comprehensive, reliable and robust treatment with a minimal footprint and optimal ease of operation.
The engineering and construction period for these units will end in 2020 and will be followed by a 25-year operating period.
"This new contract illustrates the excellent partnership that has been maintained since 2000 between PDAM Tirtanadi and SUEZ. We are proud to continue our collaboration for the next 25 years to support the development of the city of Medan by guaranteeing access to water for the growing population and industries in the area," said Marie-Ange Debon, Group Deputy CEO in charge of the International Division.
With this contract, SUEZ is strengthening its presence in the water management industry in Indonesia, where the Group has built over 150 water production and sanitation plants since 1953. The Group currently operates water production plants and provides drinking water services to the inhabitants of Medan (Sumatra) and Semarang (Java). Since late 2015, SUEZ has also treated wastewater from Michelin's synthetic rubber production plant in the region of Cilegon.