Akaindo settles dispute amicably

JAKARTA (JP): The city water contractors' association (Akaindo) amicably settled its dispute with city-owned water company PDAM Jaya and its two foreign partners -- Pam Lyonnaise Jaya (Palyja) and Thames Pam Jaya (TPJ).

The head of Akaindo, Win Gaza, said on Monday that a memorandum of understanding to end the dispute was signed by representatives of Akaindo and PDAM Jaya's partners on Jan. 6.

The agreement to end the dispute, which began when Akaindo filed a lawsuit over allegedly unfair business practices, was finalized at the Central Jakarta District Court on Thursday.

"Under the agreement, both Palyja and TPJ will train Akaindo's 450 contractors to deal with the city's water problems," Win said.

"In return Palyja and TPJ are free to employ our contractors in their projects," he added.

Bernard Lafrogne of Palyja explained that the training would include teaching several new methods for the installation and repair of water pipes.

Last September, 17 lawyers representing Akaindo filed a lawsuit against Governor Sutiyoso, PDAM Jaya and nine other parties over a cooperative agreement on water management.

The lawyers asked the court to revoke the agreement between PDAM Jaya, Palyja and TPJ.

The lawyers claimed the agreement was illegal because it only benefited the foreign companies and PDAM Jaya. (ylt)