Lyonnaise to embark on two water projects worth Rp 87 billion
Lyonnaise to embark on two water projects worth Rp 87 billion
JAKARTA (JP): City-owned tap water company PDAM Jaya and
French firm Lyonnaise des Eaux have reached an agreement to
embark on the construction of two water projects worth Rp 87
billion (US$5.8 million) in West Jakarta.
The two firms said in a statement yesterday that the first
project, involving an investment commitment of Rp 60 billion,
would be the construction of an 11-kilometer main water pipeline
linking the Cisadane river in Tangerang to the new distribution
center in the western part of Jakarta.
The second project will be the Rp 27 billion construction of a
new reservoir with a designed capacity of 22,300 cubic meters,
the statement said.
According to the statement, PDAM Jaya, which manages the
capital's water production and distribution, has awarded
contracts for the two projects to all national contractors with
the expenses financed by Lyonnaise des Eaux.
"The projects are slated for completion at the end of 1999,"
the statement said, adding the project is expected to supply tap
water to about 500,000 new customers.
The two projects are part of investment commitments amounting
to Rp 350 billion made by Lyonnaise des Eaux and Britain's Thames
Water Overseas Ltd. in their cooperation agreement with PDAM Jaya
to improve water infrastructure in the capital.
Based on the cooperation scheme, besides the two projects, the
two foreign firms will also fund the repair and replacement of
approximately 120 kilometers of pipes and the refurbishment of
water treatment plants.
The two foreign firms resumed their contracts with PDAM Jaya
recently after the Jakarta administration canceled tap water
concessions with PT Garuda Dipta Semesta (GDS), which involved
Suez Lyonnaise, and PT Kekar-Thames Airindo (Kati) -- the Thames
Water joint venture -- shortly after Soeharto resigned as
president on May 21.
The cancellation of the deals to supply water to Jakarta
customers was taken on the grounds that the awarding of the
projects was not done fairly.
GDS is a subsidiary of the widely diversified Salim group
owned by tycoon Soedono Salim, which has close ties to the
Soeharto family.
Kati is owned by former president Soeharto's eldest son Sigit
Hardjojudanto in cooperation with a subsidiary of Thames Water.
(hhr)