PROJECTS

Expanding Water Supply in Informal Settlements in Jakarta, Indonesia

The problem

Many low-income communities in Jakarta relied on informal providers for waterbecause it was not financially viable to for the private company running the water network to connect them. The supply from informal providers was expensive and low quality. 

How we helped

Castalia designed a subsidy program to make service expansion to low income communities profitableThe private concessionaire would receive a fixed payment per connection added in specified low-income communities. To design the program, westimated the cost and revenue implications of expanding service to these communities used a discounted cash flow analysis to determine the subsidy amount that would make the investment in service expansion viable. 

Impact

The program was implemented in 2007. Over 5,000 poor households were connected to Jakarta’s piped network within the first 3 years.  

The client

The World Bank

Our team

Alex Sundakov

Alex Sundakov

Executive Director
David Ehrhardt

David Ehrhardt

Chief Executive

How can we help you?

How can we help you?