Feasibility Study Analysis of Drinking Water Supply System (SPAM) Service Development in the Eastern Region of Bandung Regency

Abstract

The equitable and sustainable development of clean water services is a crucial factor in improving the quality of life and supporting regional development. Bandung Regency, particularly the eastern region, faces significant challenges in clean water provision due to limited resources and inadequate infrastructure. This study aims to analyze the feasibility of developing a Drinking Water Supply System (SPAM) in the area by considering technical, financial, social, and environmental aspects. Primary data were obtained through field surveys, interviews, and direct observations, while secondary data were collected from official documents and government policies related to SPAM. Feasibility analysis was conducted using quantitative methods, with key indicators including Net Present Value (NPV), Internal Rate of Return (IRR), Break-Even Point (BEP), and Payback Period (PP). The results indicate that the project is financially feasible, with an investor NPV of IDR 74.688 million (>0) and an IRR of 13.34%, which exceeds the Weighted Average Cost of Capital (WACC) of 10.58%. The investor’s break-even point is achieved in the 20th year, still within the 25-year contract period. Therefore, the development of SPAM in the eastern region of Bandung Regency is considered feasible and has the potential to significantly improve equitable access to clean water.