Sutiyoso defends water handling deal<\/p>\n
JAKARTA (JP): Governor Sutiyoso insisted on Tuesday that he
\nwould not revoke the existing water supply agreement between city
\nwater company PDAM Jaya and its two foreign partners, as was
\ndemanded by PDAM Jaya workers.<\/p>\n
According to the governor, the city administration would face
\nlawsuits from the foreign firms -- PT Thames Pam Jaya (TPJ) and
\nPT Pam Lyonnaise Jaya (Palyja) -- if it canceled the deal without
\nclear legal reasons.<\/p>\n
"The firms would ask for compensation since they have invested
\nmoney here... and it's not small money," he said.<\/p>\n
"Revoking the deal will not be a best choice."<\/p>\n
The cancellation of the agreement would put PDAM Jaya in a
\ndifficult position since it still has foreign debt worth Rp 800
\nbillion (US$100 million), Sutiyoso said.<\/p>\n
The governor would not name the creditors.<\/p>\n
He said that the two firms, which are subsidiaries of
\nBritain's Thames Water International and France's Lyonnaise des
\nEaux, stated in the water deal that they would help settle the
\nforeign debt.<\/p>\n
Sutiyoso again refused to give further details.<\/p>\n
He claimed that the revocation of the agreement would also
\naffect the country's economy, as foreign companies would be made
\nreluctant to invest here.<\/p>\n
At least 500 people in the Pam Jaya workers union demonstrated
\nat the City Council on Monday, demanding that Sutiyoso cancel the
\n19-month-old water agreement by the end of September at the
\nlatest. They said that otherwise they would disrupt the city's
\nwater supply.<\/p>\n
Carrying banners, posters, a coffin and effigies of Sutiyoso
\nand the council's former speaker, Edy Waluyo, the workers asked
\nthe council to press the governor to revoke the deal.<\/p>\n
The council's provisional leaders, Supangat from the
\nIndonesian Democratic Party of Struggle (PDI Perjuangan) and
\nAbdul Aziz Matnur from the Justice Party, said the council would
\ndo everything within its power to return the management of the
\ncity's water supply to PDAM Jaya.<\/p>\n
"We will try to return water management to PDAM Jaya by the
\nend of this month at the latest," Supangat who seemed influenced
\nby the workers' emotion, told the demonstrators.<\/p>\n
Sutiyoso promised on Tuesday that the city administration
\nwould improve the conditions of the water agreement, signed in
\nFebruary last year, in order to satisfy all related parties.<\/p>\n
"The renegotiation is still underway. We are making several
\ncorrections to avoid losses to the city administration," he said,
\nwithout giving details.<\/p>\n
Asked to comment on PDAM Jaya workers' threat to cut the water
\nsupply, Sutiyoso said that this would only make the people
\nsuffer.<\/p>\n
"The workers' threat is an old song. The public would be angry
\nif the workers tried to disrupt the water supply," he said. (jun)<\/p>",
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