Abstract
In most developing countries, the growth of urban public service infrastructure
strives to keep up with population growth. Residential Water Use (RWU) in over
half of total municipal water consumption in most urban areas in developed
countries face similar challenges. For example, consider the Municipality Water
Supply Utility (Perusahaan Daerah Air Minum/PDAM) Tirtawening, Bandung; in
the last 10 years, the average urban water coverage services have grown at a rate
of 0.65%, while the Bandung municipal population growth rate is 1.42% per year.
PDAM select and prioritizes their project portfolio based on Strengths,
Weaknesses, Opportunities and Threats (SWOT) analysis as well as on its
resources availability.
A significant body of research exists which assesses the tools and techniques
to optimize a project portfolio. Project Management Body of Knowledge
(PMBOK) 5th edition mentions that project interdependencies is a tool to
determine and select the project from the Project Portfolio (PP). Most research
conducted treated project interdependencies (PI) as a static variable, defined in
earlier stage of the PP lifecycle. Apart from that, the importance of a dynamic PI
model that is developed using the System Dynamics (SD) approach is not yet
recognized as a tool and technique for project portfolio selection
The outcomes of this research suggest that the project interdependencies model
developed through the SD approach can be one of the available tools and
techniques used to assess project interdependencies and determine project priority
in order to optimize the project portfolio.
Water Resources Management VIII 65

Keywords: project portfolio management, project management, urban water
management, PDAM Tirtawening Bandung, system dynamics.