Council OKs water price increase<\/p>\n
JAKARTA (JP): All 10 factions at the City Council have given
\nin-principle approval for an increase in tap water rates proposed
\nby the commission C for economic affairs, a councillor said on
\nWednesday.<\/p>\n
Secretary of the commission C, Azis Boeang, told reporters the
\ninitial endorsement was given in a meeting between leaders of the
\nfactions on Monday.<\/p>\n
Official approval is now being sought from each faction before
\nthe council submits the draft of revised tap water prices to the
\ncity administration, Azis said.<\/p>\n
"In principle the factions unanimously agreed with the
\ncommission to raise the prices, except for social institutions
\nand poor customers where a cross-subsidy scheme will be applied,"
\nAzis said.<\/p>\n
He added that the meeting also recommended the water tariff
\nimposed on Tanjung Priok port operator be charged in US dollars.<\/p>\n
"Surplus gained from the tariff increase will be used to cover
\nthe city water company's debts, which have reached Rp 355 billion
\n(US$37.6 million)," Azis said.<\/p>\n
After lengthy discussions with the city administration, as
\nwell as the city's water company PAM Jaya and its foreign joint
\nventure partners Thames Pam Jaya (TPJ) and PAM Lyonnaise Jaya
\n(Palyja), the commission C recommended tap water price increases
\nbetween 14 percent and 43 percent earlier this month.<\/p>\n
The city administration had proposed an increase between 6
\npercent and 43.09 percent be imposed on all consumer categories.<\/p>\n
Azis said the council would ask the city water company and its
\nforeign partners to improve services and facilities in exchange
\nfor the tariff rise.<\/p>\n
The council, Azis added, also expected the companies to
\nfulfill its promise to provide drinkable tap water by 2007.<\/p>\n
"If they fail to meet their promises they deserve heavy
\npunishment," Azis said. (ima)<\/p>",
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