Financial Feasibility Evaluation of a Rural Clean Water Supply System in Watudiran Village, Sikka Regency

Abstract

Watudiran Village in Sikka Regency is a semi-arid area that struggles with limited access to clean water due to inadequate water supply infrastructure. To address this issue, a piped water network project with an investment value of IDR 1,287,269,000 has been planned. This study aims to evaluate the financial feasibility of the project using a case study approach and quantitative analysis. Data were obtained from planning documents and field observations, including population data, investment cost components, and revenue projections based on water tariffs. The feasibility indicators used include Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), Payback Period (PP), and Break-Even Point (BEP). The results indicate a positive NPV of IDR 80,253,656, an IRR of 10.79%, a BCR of 1.05, and a payback period of 9 years and 1.6 months. These indicators suggest that the clean water supply project in Watudiran is financially feasible and can be sustainably implemented to meet the community’s basic needs.