A consortium led by Indonesia's energy group Medco has won the tender process for the Umbulan water treatment plant PPP project in East Java, Indonesia. Jakarta-based construction firm Bangun Cipta Kontraktor, founded by a former minister, will complete the consortium.

The company submitted the lowest offer compared to rivals, including:

• Marubeni, Nippon Koei and Perkom Indah Murni;
• Bakrieland Development's consortium with Amerta Bumi Capital and Beijing Enterprise Water; and
• China's Beijing Enterprise Water and Kukdong Engineering 7 Construction.

The award marks the end of a six year tender process to develop the Rp 2.1 trillion (US$151 million) pilot public-private partnerships (PPP) project in the country.

The project, which was initiated by the East Java provincial government in 2010, has been lon delayed by red tape and pricing scheme disputes.

The Umbulan water plant project, which is expected to be operational within two years, will provide drinking water to 350,000 households in Pasuruan, Sidoardjo and Gresik districts as well as Surabaya municipality.

According to sources, investors have already secured funding for the project, with the government funding in a total Rp 300 billion (US$21.6 million) from the 2016 and 2017 state budgets. The Finance Ministry will also provide a viability gap for the project.