Makassar City, the capital of South Sulawesi Province, has the population of more than 1,000,000 and is the social and economic center of the region. The city and the surrounding areas were suffering from floods almost every year in the rainy season and from the shortage of water supply in the dry season due to rapid urbanization.

To mitigate these chronic problems and to enhance the economic development and better urban life conditions, CTI recommended the Bili Bili Multipurpose Dam as a core component of the Jeneberang River Comprehensive Development Project in 1981. Designed with functions to regulate a 50 year probable flood and the supply of 3.3 m³/s of municipal water for Ujung Pandang City, as well as irrigation water for about 25,000 ha of paddy fields.

With funds from JBIC, construction begun in 1991 and was completed in 1999. Its positive effects have been highly regarded.