VGF Support Applied to the Legok Nangka Waste Management Project
Detiktoday.com – Viability Gap Fund (VGF) is financial support from the Government in the form of financial contributions in the form of a portion of the construction costs provided to the Cooperation Project that already has economic viability but does not yet have financial viability. VGF is a form of support from the Central Government for infrastructure projects implemented under the Government Cooperation with Business Entity (KPBU) scheme, such as at the Legok Nangka Regional waste processing and processing site.
This was conveyed by Minister of Finance Sri Mulyani Indrawati in his keynote speech at the Signing of Cooperation Agreement between the Provincial Government of DKI Jakarta and West Java Province with PT Sarana Multi Infrastruktur (Persero) regarding the support of the Government and Business Entity (PPP) scheme through the Viability Gap Fund (VGF) is located in the Mezzanine Hall of the Djuanda I Building Ministry of Finance on Monday (27/07).
“Today we are giving a viability gap fund to the PPP project. So if Mr. Anies, Mr. Ridwan Kamil or the local government has other projects, we also not only support with this loan but also loans that provide viabilty gap funds to the project which today is the final processing of the waste processing site, the final processing of waste, “Said the Minister of Finance.
The Legok Jackfruit Waste Management Project is the first project in the waste sector that has the support of the Government and Business Entity (PPP) scheme through the Viability Gap Fund (VGF). This fiscal support from the Government is financial in the form of a contribution to some of the construction costs provided to the Cooperation Project that already has economic viability, but does not yet have financial viability. On this occasion, the Director General of Financing and Risk Management Luky Alfirman submitted the document in principle in support of the feasibility support of the Legok Nangka VGF PPP Project to the Governor of West Java Ridwan Kamil.
“This is one of the projects that I really provide full support and I have been pushing continuously so that we can provide support so that the local government can really better manage and process these rubbish and drinking water. Garbage, drinking water and regional roads are three things that we fully support, “concluded the Minister.
For information, other PPP projects that have received Feasibility Support are in the Water Sector, namely Umbulan Water Supply System (SPAM) in East Java Province, Bandar Lampung City SPAM, and Pekanbaru City SPAM. This program is a form of central government support for projects implemented under the Government Cooperation with Business Entity (PPP) scheme.
The PPP scheme is expected to provide a role in the National Economic Recovery (PEN) program. Several projects in the PPP pipeline are ready to be offered to investors. The priority sectors in 2020 include the drinking water, transportation, health and solid waste sectors. The Legok Nangka TPPAS Regional Project is a National Strategic Project to support the President’s direction in realizing 100% waste management by 2025.
