Clean water tariff structure must be negotiable: Radinal<\/p>\n
JAKARTA (JP): Minister of Public Works Radinal Moochtar said
\nhere yesterday that the tariff structure for clean water must be
\nnegotiable with private investors in order to ensure cost
\nrecovery.<\/p>\n
Addressing a session at the World Infrastructure Forum-Asia
\n1994, Radinal said the tariff-flexibility policy hopes to attract
\nmore private investment in the area of water supply.<\/p>\n
The minister said 73 percent of investments needed for water
\nsupply, which are projected to reach US$7.8 billion during the
\nnext five years, is expected to come from the private sector.<\/p>\n
When asked about water as a public commodity, Radinal said the
\ngovernment will take a better look at the matter and added, "as
\nlong as it is regarded as a public commodity, it is difficult for
\nthe private sector to enter. In this case, the government must do
\nit alone," he told journalists after addressing the session.<\/p>\n
The government, with its limited funds, will concentrate on
\nthe development of water supply only for the urban poor, the
\nrural sector and for small urban centers.<\/p>\n
Facilities for the supply of clean water for medium, large and
\nmetropolitan centers such as Jakarta, Medan, Surabaya and
\nBandung, will be offered to project creditors under bilateral and
\nmultilateral arrangements and to the private sector.<\/p>\n
Better service<\/p>\n
The private sector is better suited to serve urban centers
\nwhich have higher service standards, and also higher tariffs.<\/p>\n
"Look at the Kemang Pratama water supply in Bekasi of West
\nJava. The supplier charges higher tariffs than those set by the
\ncity water company PDAM Jaya, but consumers are satisfied with
\nthe service," the minister said.<\/p>\n
About 50 percent of the urban population is served through
\npipelines but only 20 percent of them is served with proper
\ndirect connections. This indicates potential for rapid expansion
\nof the service through private investment.<\/p>\n
At the moment, the government is examining proposals by
\nprivate sector companies for two water treatment projects in
\nJakarta with an investment of US$280 million, two transmission
\npipeline projects at $45 million, two water treatment projects in
\nSurabaya at $85 million and one water treatment project in
\nSemarang with $60 million investment.<\/p>\n
The government will offer 20 new water supply projects during
\nthe next six years. They are intake, water treatment, reservoir
\nand main trunk projects in Tangerang, Bogor, Sidoarjo, Bandung,
\nMedan, Pekanbaru, Ujungpandang, Bandar Lampung, Lhok Seumawe and
\nBalikpapan. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clean-water-tariff-structure-must-be-negotiable-radinal-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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