Many initiatives within the public-private partnership (PPP) framework face financial challenges, hindering their successful completion. The low success rate of PPP projects reaching financial close necessitates alternative financing solutions. Cash waqf, a form of green finance, has significant potential to address funding issues in PPP investments in Indonesia, with an estimated potential of reaching 180 trillion per year. Sharia law dictates that cash waqf explicitly avoids interest obligations, intimidation, and gambling. This study aims to provide a financial feasibility analysis of a clean water supply project utilizing cash waqf. Using a single case study approach and financial feasibility analysis, the results demonstrate that the project is financially viable. As the use of cash waqf in a PPP system has not been previously addressed, these findings offer new insights into alternative financing options that can benefit stakeholders involved in construction companies.

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Proposed Alternative Financial Model for a Water Supply Project Using Green Finance (Cash Waqf Funding)

  • Yunita Dian Suwandari,
  • Azeanita Binti Suratkon

摘要

Many initiatives within the public-private partnership (PPP) framework face financial challenges, hindering their successful completion. The low success rate of PPP projects reaching financial close necessitates alternative financing solutions. Cash waqf, a form of green finance, has significant potential to address funding issues in PPP investments in Indonesia, with an estimated potential of reaching 180 trillion per year. Sharia law dictates that cash waqf explicitly avoids interest obligations, intimidation, and gambling. This study aims to provide a financial feasibility analysis of a clean water supply project utilizing cash waqf. Using a single case study approach and financial feasibility analysis, the results demonstrate that the project is financially viable. As the use of cash waqf in a PPP system has not been previously addressed, these findings offer new insights into alternative financing options that can benefit stakeholders involved in construction companies.