The DFCD’s Origination Facility Investment Committee has approved the origination project proposal to improve water supply in West Bandung, West Java, Indonesia.
With this approval, SNV intends to sign a €205,500 grant funding agreement with PT N-Three (N3) and an SNV technical assistance package for the development of a business investment proposition related to supplying bulk water to West Bandung, Indonesia.
West Bandung needs new water sources and additional investments in water infrastructure to adapt to climate change. The region has increasingly seen periods of droughts leading to water resource stress and water crisis. The project is in line with the Indonesian National Adaptation Plan (NAP) and the updated nationally determined contribution (NDC) in adapting to climate change by providing alternative clean water sources to address water scarcity in Indonesia. This project is a Rio-Marker 2 (Climate Change Adaptation) level project that seeks to sustainably add water supply through both green and grey infrastructure (i.e., improving the resiliency of the spring and physical infrastructure) to supply bulk water to the water utility companies.
This project seeks to provide clean water to 160,000 underserved people in West Java, both at household and industrial levels of which 78,400 are expected to be women. Industrial users include food processing companies and other users of water. The project is anticipated to lead to improvements in health and wellbeing as the quality of the mountain spring water is usually higher and is more affordable than other sources of water. An expected indirect benefit of this project is a reduction in single-use plastic bottles as piped water becomes more available. Finally, this project is estimated to mobilise private capital of €12 million.
The project will address Sustainable Development Goals (SDGs) including zero hunger, responsible consumption and production, climate action, clean water and sanitation, decent work and economic growth, sustainable cities and communities, good health and, gender equality, reduced inequalities and partnerships for the goals.
About the DFCD
The Dutch fund for climate and development is €160 million funded by The Dutch Ministry of Foreign Affairs to improve the resiliency of the most vulnerable landscape through climate change adaptation. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV Netherlands Development Organisation, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit: www.thedfcd.com
SNV is a not-for-profit international development organisation that makes a lasting difference in the lives of people living in poverty by helping them raise incomes and access basic services. We aim for premium quality and focus on only three sectors: agriculture, energy and water, sanitation and hygiene (WASH). With a long-term, local presence in over 25 countries in Asia, Africa and Latin America, we know how governments work, which written and unwritten rules exist, and how relationships are built. Implementing our mission exclusively through project financing requires us to work efficiently and invest in operational excellence every day. Our team of more than 1,300 staff is the backbone of SNV.
About PT N-three
PT N-three is a provider, developer and operator for water, wastewater, recycling treatment plants and desalination. PT N-three has been operating since 2017 and looking for support to scale up their business to provide 570 litres/ second to water utility companies in which 77% of the additional water will go to a municipal zone and 23% will go to an industrial zone.
To read the full disclosure document, please click here.
For more information about the project, please contact