Class action sought over water rate hike<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
Some water consumers are threatening to file a class action
\nagainst the city administration and the City Council if Governor
\nSutiyoso's proposal for a 45 percent rise in water charges is
\napproved by councillors.<\/p>\n
Jakarta Tap Water Consumers' Community (Komparta) chairman
\nAchmad Djiddan Safwan said on Friday that an increase would only
\nbe acceptable if the city water company and its private sector
\npartners improved their services.<\/p>\n
"Without better services, we will never agree to any proposal
\nto increase water charges," he told a press conference while
\nsimultaneously launching the organization here.<\/p>\n
Djiddan claimed that his organization had the support of
\napproximately 200,000 water consumers out of a total of about
\n650,000 in the city.<\/p>\n
Responding to a demand from the private water utilities, PT
\nThames Pam Jaya (TPJ) and PT Pam Lyonaisse Jaya (Palyja),
\nSutiyoso on Thursday proposed the 45 percent increase in water
\ncharges to the City Council.<\/p>\n
The new water charges are expected to come into effect early
\nnext month.<\/p>\n
Low-income families in the city will find their difficulties
\ncompounded in April as Sutiyoso has also submitted a proposal for
\na rise in economy class city bus fares by up to 27 percent to the
\nCity Council, which increase is also expected to come into effect
\nnext month.<\/p>\n
Djiddan criticized the city administration for bowing to the
\nwishes of its private sector partners. TPJ is a subsidiary of
\nBritain's Thames Water International, and Palyja a subsidiary of
\nFrance's ONDEO (formerly Lyonaisse des Eaux).<\/p>\n
"Before the two foreign partners became involved in water
\nmanagement in 1998, Pam Jaya was able to contribute between Rp 3
\nbillion and Rp 10 billion to the city budget. But now, the water
\ncompanies cannot even properly serve their customers," he
\nasserted.<\/p>\n
The agreement between the city and the private sector water
\nutilities is due to last for 25 years.<\/p>\n
According to Djiddan, the collaborative venture between Pam
\nJaya and its partners was unhealthy as Pam Jaya found itself in a
\nvery weak position.<\/p>\n
He cited as an example the fact that the foreign partners
\nreceived 50 percent of the income from fines imposed on
\ncustomers, but Pam Jaya and the city administration had to bear
\nall the risks arising from the sluggish bureaucratic process.<\/p>\n
Water Regulatory Board chairman Achmad Lanti had earlier said
\nthat the two companies produced about 500 million cubic meters of
\nwater per year, but 49 percent of this water was lost due to
\nillegal connections and leakage.<\/p>\n
The chairwoman of the City Council financial affairs
\ncommission, Anna Rudhiantiana Legawati, said she could understand
\nthe need for the increase, but the figure proposed was too high.<\/p>\n
"I think 45 percent is excessive. Therefore, we will discuss
\nthe proposal carefully and hopefully the result of this will be
\nannounced next week," Anna told the press on Friday.<\/p>\n
The current price of water in Jakarta averages Rp 2,700 per
\ncubic meter while the cost of production, according to an
\nofficial from city-owned water company PAM Jaya, is Rp 3,100.<\/p>\n
Since PAM Jaya signed contracts with its two private sector
\npartners, water charges have been increased twice, by 20 percent
\nin 1998 and by 35 percent in 2001.<\/p>\n
Yet, the city-owned company has suffered some Rp 700 billion
\nin losses due to -- it claims -- increasing production costs.<\/p>",
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