Discrepancy found in water firm debt<\/p>\n
Damar Harsanto, The Jakarta Post, Jakarta<\/p>\n
The City Water Regulatory Agency has revealed a discrepancy in
\nthe amount of debt owed by city-run tap water operator PD PAM
\nJaya to its two foreign partners, British firm Thames PAM Jaya
\n(TPJ) and French firm PT PAM Lyonnaise Jaya (Palyja).<\/p>\n
\"An audit report by the Development Finance Comptroller (BPKP)
\nstated that the operator's debt was smaller than what has been
\nclaimed by the two foreign partners,\" agency head Achmad Lanti
\ntold The Jakarta Post on Thursday.<\/p>\n
Lanti, however, declined to divulge the figure, saying that
\nthe amount was currently being discussed by the related parties
\nincluding those representing PD PAM Jaya, TPJ and Palyja.<\/p>\n
Both TPJ and Palyja earlier claimed that PD PAM Jaya's debt
\nstood at Rp 990 billion (US$116.5 million), but the figure from
\nthe comptroller's audit report was not available.<\/p>\n
The debt was the main reason behind the decision of the
\nJakarta administration to raise the tap water rate early this
\nyear by 30 percent on average to enable PAM Jaya to repay its
\ndebts to its foreign partners.<\/p>\n
The rate hike was first proposed in late November although
\ncity councillors had earlier demanded the increase to be delayed,
\npending an audit by an independent consultant.<\/p>\n
On the first day of 2004, the administration increased the
\nrate amid public outcry. Jakartans have been complaining about
\nthe operator's poor service and constant disruption in water
\nsupply.<\/p>\n
PAM Jaya plans to pay 24 percent of its debt in installments
\nto TPJ and Palyja this year.<\/p>\n
Councillor Agus Darmawan of Commission B overseeing economic
\naffairs called on the administration to submit the audit report
\nto the City Council.<\/p>\n
He promised that the council would support any moves by the
\nadministration to repay its debt to private companies as long as
\nthe debt was audited by an independent audit body first.<\/p>\n
Aside from the audit report from the comptroller, an
\nInternational Combined Experts (ICE) team of London-based
\nindependent auditor Stone Webster and its local experts already
\nfinished its report in mid March.<\/p>\n
The audit was a part of a grant from the Asian Development
\nBank (ADB) given to the Ministry of Resettlement and Regional
\nInfrastructure.<\/p>\n
A reliable source with the administration said that the audit
\nreport was currently being discussed by a joint team from the
\nministry and the administration.<\/p>\n
\"Besides the report, the ICE team also came up with several
\nrecommendations on calculation, for instance in water charges and
\ncapital expenditure, in order to prevent a further deficit in the
\ntap water operation,\" the source said.<\/p>\n
The joint team is scheduled to submit the audit report and
\nrecommendations from the ICE team to Minister Soenarno and
\nGovernor Sutiyoso by the end of this month.<\/p>\n
Sutiyoso assured the public that his administration would not
\nraise the tap water rate again.<\/p>\n
\"There is no plan to increase the rate as everything is in
\naccordance with the existing contract (with TPJ and Palyja)...,\"
\nhe said. \"We only need to complete the basis of the calculation
\nin the tap water business by next month.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/discrepancy-found-in-water-firm-debt-1447893297",
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"sponsor": "Okusi Associates",
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