City Hall urged to report plan on privatization
City Hall urged to report plan on privatization
JAKARTA (JP): A councilor has urged the city municipality to
report on the progress of the planned cooperation between PDAM
Jaya, the city-owned water company, and private investors.
Helmy AR Syihab who chairs Commission C for City Revenue said
yesterday water services affected the public so the council
should know about the plans.
He was commenting on assistant to the secretary of development
affairs Prawoto S. Danoemihardjo's statement that council
agreement was not needed for cooperation with the private sector.
"The council represents the public," Helmy said. "We have the
right to know about the cooperation details for the public's
interest."
He said the council supported the planned cooperation because
of the administration's lack of funds to improve public services.
"But the price of water should be determined by the Governor.
The decision should not be affected by the private investors'
interest," Helmy said.
The cooperation should guarantee better water quality and
better distribution, he said.
Next month PDAM Jaya is scheduled to sign a cooperation
agreement with PT Garuda Dipta Semesta, managed by Salim Group,
and PT Kekarpola Airindo, owned by President Soeharto's eldest
son Sigit Harjojudanto.
The two private companies will cooperate with French firm
Lyonnaise des Eaux and British firm Thames Water International.
PDAM Jaya head Syamsu Romli said earlier the company would
still belong to the city despite cooperation with the private
sector. He said water prices would not rise this year.
He said cooperation with private investors would benefit the
administration, investors and the public.
The cooperation's first five years will need a $US250 million
investment, he said. The cooperation involves a 25-year profit
sharing scheme.
The money would be used to build more infrastructure: a pipe
network and a treatment plant in Cakung, East Jakarta, he said.
The new treatment plant will produce 6,000 liters of water a
second with water from West Java's Jatiluhur dam.
Now, PDAM Jaya produces 16,982 liters of water a second and
serves only 417,215 of Jakarta's 1,640,380 families.
In 2000 the company is expected to boost production to 22,287
liters of water a second and serve 663,177 families. (ste)