City Council rejects privatization plans<\/p>\n
JAKARTA (JP): The City Council has rejected the municipality's
\nplan for private firms to cooperate with the city-owned water
\ncompany because the administration did not give enough details on
\nthe cooperation.<\/p>\n
The council said a lack of detail made it fear private company
\nparticipation could affect city water prices, it was disclosed at
\na meeting Wednesday night.<\/p>\n
City Council deputy chairman H.M. Djufrie, quoting the city
\nadministration's information, said the private firms would have
\nbeen in charge of distributing water and billing the customers.<\/p>\n
"We fear the private firms would have more authority than the
\ncity, which means they could raise tariffs unreasonably," Djufrie
\nsaid.<\/p>\n
Muhammad Banang, of the United Development Party faction, said
\nthe cooperation plan had to be more transparent before the
\ncouncil could approve it.<\/p>\n
"As representatives of the people, the council cannot easily
\naccept plans that could end up in burdening the people," Banang
\nsaid.<\/p>\n
Golkar faction member Ary Amier Armas asked why the plan was
\nnot submitted to the House of Representatives.<\/p>\n
"If the plan comes straight from the central government, then
\nit should have been submitted to the House of Representatives
\ninstead of the City Council," Ary said.<\/p>\n
Although cooperation with private firms aimed to increase
\nwater quality and distribution services, the companies must
\nguarantee prices would be affordable for everyone, he said.<\/p>\n
Meanwhile, the Assistant to the City Secretary, Prawoto
\nDanoemihardjo, said the city would not let private companies take
\ncontrol of water management and would like the council's opinions
\non the plan.<\/p>\n
Earlier, the Ministry of Public Works approved four local and
\nforeign private companies to join the city-owned water company.<\/p>\n
Director of the water company, Syamsu Romli, said the project
\nwould start in June if an agreement could be reached by next
\nmonth.<\/p>\n
PT Garuda Dipta Semesta, managed by the Salim Group, and PT
\nKekarpola Airindo, owned by President's Soeharto's eldest son
\nSigit Harjojudanto, planned to carry out the project.<\/p>\n
French firm Lyonnaise des Eaux and British firm Thames Water
\nInternational would also be involved.<\/p>\n
The water company predicted cooperation with the private
\nsector would increase water quality and distribution services by
\nup to 49 percent by next year.<\/p>\n
It also predicted the city's running water would be drinkable
\nby 2006. (02)<\/p>",
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