Jakarta Governor Sutiyoso has approved the acquisition of tap water operator PT Thames Pam Jaya (TPJ) by Singaporean consortium Acuatico Ltd. after the committee assessing the acquisition process approved the takeover, The Jakarta Post reported.
The committee, comprising officials from the city administration, the Public Works Ministry and the Asian Development Bank, concluded in its recommendation that evidence of Acuatico's firm commitment to capital needs and improving tap water service to residents were key factors in making its decision. The committee had twice rejected the consortium's bid.
Sutiyoso said that Acuatico's intention of softening the impact of higher water rates through improved service was a "breakthrough" in water contract arrangements between the city and its two tap water operators, TPJ and PT Pam Lyonaisse Jaya (Palyja).
"For the past two years, the two operators have been reluctant to base rate increases on performance. It's not fair to have poor tap water service while the rates keep going up," he said.
Under its new agreement with the administration, Acuatico is planning to invest $15 million to improve service.