City out for bigger shares in water deals

JAKARTA (JP): The city administration wants bigger shares in water-management cooperative agreements between city-owned water company PDAM Jaya and its two foreign companies in the next renegotiations of the deals, Governor Sutiyoso said on Monday.

He said the existing shares of 10 percent in the agreements was considered too low but failed to mention the exact quantity of the shares in the agreements.

Under the cooperative agreements, PDAM Jaya formed Pam Lyonnaise Jaya (Palyja) in partnership with French company Suez Lyonnaise, and set up Thames Pam Jaya (TPJ) with British company Thames Water Overseas Ltd.

Both companies are responsible for managing, operating, maintaining and improving the water supply system in the capital, with Palyja controlling the western part of the city and TPJ the north.

Sutiyoso said that he briefed executives of both Thames Water and Suez Lyonnaise about the renegotiation plans while at Thames' London headquarters during his visit to Europe from Oct. 19 to Oct. 31.

Principally, the executives understood Jakarta's renegotiation plan, the governor said.

"I told them about the renegotiation plans. And the new deals should constitute a kind of win-win solution for all parties involved," he said.

"I have asked the two foreign companies to encourage their executives here (in Jakarta) to make the renegotiations feasible," he said without mentioning when the renegotiations will be conducted and the amount of shares the city administration wanted.

He said the city might need consultants, both local and foreign, to help with the renegotiations.

"Basically, I will tell my staff that the city will not suffer any losses in the renegotiations whatsoever," he said.

The City Council urged the city administration earlier to renew its deals with the foreign firms even though it strongly supported the cooperative agreements with them.

The call was made after 40 lawyers, representing the Indonesian Water Contractors Association's Jakarta chapter, asked the councillors to open a special meeting between executives of the two joint ventures and the city authority to review the cooperation deals.

The lawyers claimed the deals between PDAM Jaya and its foreign partners were illegal agreements because they were made in an unfair bidding process.

The lawyers belong to the same team of lawyers that filed a lawsuit in September at the Central Jakarta district court against Governor Sutiyoso, PDAM Jaya and nine other parties, including the two joint ventures, over the cooperative agreements on water management in the capital.

Sutiyoso also said on Monday that he rejected proposals advanced by the joint-venture companies to increase the current water tariffs.

"I said the Indonesian people are still suffering (from the impact of the prolonged economic crisis). It's illogical at the moment," he said.

The important thing, he said, was that the companies should first provide enough water to the city's residents before thinking of water tariff increases. (jun)