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Singapore-listed Moya Asia has signed a 25-year contract to build, operate and transfer a fresh water treatment project in Tangerang, Banten, it said on Monday.

The company’s local subsidy, Moya Indonesia, signed an agreement with Tangerang’s government-owned water company, Tirta Benteng, to roll out the project. The initiative is set to cost between $110 million and $120 million.

“This is Moya Asia’s most significant [treatment] project to date. We anticipate that this project will contribute a substantial stable revenue stream for the group in years to come,” Simon A. Melhem, the company’s chief executive, said in a statement on Monday.

Once complete, the project will have a capacity of 168,480 cubic meters per day and serve three zones in Tangerang.

Zone 1 includes Cipondoh, Neglasari, Benda and Batu Ceper; Zone 2 covers Karawaci, Cibodas, Jatiuwung, Priuk; and Zone 3 includes Karang Tengah, Pinang, Larangan and Ciledug.

The president director of Tirta Benteng, Ahmad Marju Qodri, said the supply of clean drinking water for people in Tangerang and the surrounding areas remained limited.

Currently there are 420,827 households connected to piped water services, which includes residents around Soekarno-Hatta International Airport.

The cooperation with Moya aims to add 120,000 new connections by 2015, bringing total connections to 540,000, or 57 percent of the Tangerang area.

Ahmad said Tirta Benteng could only afford to spend Rp 15 billion ($1.7 million) to build new connections.

“That’s why we are involving the private sector,” Ahmad said.

Indonesia relies on private sector participation as the government is struggling to finance infrastructure development.

Djoko Kirmanto, the public works minister, said cooperation with the private sector was part of the government’s effort to meet the UN’s Millennium Development Goals by 2015, which aim to connect 68 percent of the population to piped water services.

To achieve the target, the government needs to spend Rp 46 trillion, he said. The Public Works Ministry has set aside only Rp 11.8 trillion for water treatment projects.

Additional reporting by Imam Mudzakir/Investor Daily