Consortium to build water plant
Consortium to build water plant
PASURUAN, East Java (JP): PT Mandala Citra Umbulan, a
consortium comprising the Humpuss and Ciputra business groups,
has started construction of a drinking water plant, the first
private drinking water plant in East Java.
The consortium's chief commissioner, Hutomo Mandala Putra,
said Tuesday that Mandala Citra would invest about US$250 million
in the project, which would be ready for commercial production in
18 months.
Hutomo, President Soeharto's youngest son, said that about 25
percent of investment would come from the consortium's own funds
and the remaining 75 percent from bank loans.
The consortium would develop the project under a 25-year
build, operate and transfer (BOT) contract, said Hutomo after the
project's ground-breaking ceremony.
The new water plant will be located in Umbulan and will take
water from the Umbulan water spring, along the slope of Mount
Bromo.
It will be able to produce 4,200 liters of water per second,
2,400 liters of which will be distributed to Surabaya, 1,350
liters to Sidoarjo regency, 250 liters to Pasuruan regency and
200 liters to Gresik regency.
The Umbulan water spring produces up to 5,300 liters a second,
but the company would only process 13.3 percent of the total.
Mandala Citra's president Andy Setiawan said the consortium
would pay Rp 500 million ($142,857) in royalties a year to PDAM,
a water company owned by the local administration.
The consortium would build distribution pipes and send the
water to PDAM, Andy said.
"PDAM and the consortium will determine the price of the water
to the end user," he said.
The consortium would build 61 kilometers of pipelines with a
diameter of 60 centimeters for the water intake facility, he
said.
The water distribution facility would be able to dispense
25,000 cubic meters of water to PDAM and the Wonocolo reservoir
in Surabaya, he said.
Ciputra Group's Harun Harjadi said the new water plant would
be used to supply water to two of the property group's housing
developments: Citra Raya in Surabaya and Citra Harmoni in
Sidoarjo. (nur/das)