Abstract:
This paper describes the use of the ‘Pendulum Obligation Diagram’ (POD) and a set of ‘Assessment
Criteria’ (AC) assisting decision-making process in selecting contract strategies for construction,
operation and maintenance of new water supply projects in Padang City, Indonesia. The use of POD and
AC are useful in comparing the relative merits of alternative contract strategies in the financing and
developing of water supply projects. Various options were developed, it was summarized that a full
concession contract will best meet most of the project requirements on fresh capital investment and is
also attractive to investors as the projected IRR is relatively high (14.27%) and CPBT is relatively short
(12.99 years) and a BOT contract strategy could meet partial project requirements with the IRR is
14.42% and CPBT is 10.41 years
