Reform of the water supply institution of Aceh Province, Indonesia

The water supply companies (PDAM) of the province of Aceh are undergoing a revitalization following the earthquake and subsequent tsunami of December 2004. The PDAMs were in a state of disrepair even before the tsunami, from almost thirty years of internal conflict. International aid agencies, including UNICEF and USAID/ESP, are supporting the rehabilitation of both the physical infrastructure and institutional capacity of the PDAMs. The PDAMs need a new structure to operate under; however extreme measures should be avoided at this stage. The PDAMs need support to increase revenue and make them truly autonomous. The tariff structure is the first problem to be addressed. There are internal as well as external changes required for the PDAMs to function successfully. The PDAMs need to learn how to develop a Corporate Plan to be able to realize it’s strengths and weaknesses. Basically the process has two principles; a participatory approach and simplicity.