<![CDATA[Access to reliable, affordable, and sustainable drinking water remains a major development challenge in Indonesia, while the development of integrated drinking water infrastructure requires substantial long-term investment, appropriate financing structures, and effective risk allocation. This study analyzes the financial feasibility, sustainability, and risk resilience of financing an integrated upstream–downstream Drinking Water Supply System (DWSS) through a consortium-based Build–Operate–Transfer scheme. The research employs an applied quantitative approach with a single-case-study strategy using secondary project data. The analysis includes profit-and-loss projections, cash-flow projections, a 70:30 debt–equity financing structure, and capital budgeting indicators consisting of Net Present Value, Internal Rate of Return, and Payback Period. Project IRR is compared with the Weighted Average Cost of Capital, while Equity IRR is evaluated against the required shareholder return. A deterministic ESG-based sensitivity analysis is conducted under base-case, green investment, social affordability, downside-risk, and ESG-optimization scenarios by varying CAPEX, OPEX, debt, revenue, and Non-Revenue Water. Financial risks are further assessed using a risk matrix covering probability, impact, feasibility consequences, and mitigation measures. The results show that the project is financially feasible in the base case, with a Project IRR of 11.32%, exceeding the WACC of 9.67%, positive project and equity NPVs, and payback periods within the cooperation period. At the equity level, the IRR reaches 13.28%, exceeding the 12.22% target. Sensitivity analysis identifies revenue decline and tariff affordability as the most critical risks, while CAPEX, OPEX, debt, and NRW remain manageable through operational efficiency. The study recommends take-or-pay arrangements, blended finance, tariff-review mechanisms, NRW reduction, financing optimization, and integrated risk governance to maintain bankability, affordability, resilience, and long-term sustainability.]]>
