New tap water rate calculation to be completed soon
New tap water rate calculation to be completed soon
Damar Harsanto, Jakarta
City-run tap water operator PD PAM Jaya and its foreign partners,
British firm Thames PAM Jaya (TPJ) and French PT PAM Lyonnaise
Jaya (Palyja), will have a newly revised basis for calculating
the rate for tap water services by the end of May.
"There will be a final decision on the revised basis for the
calculation. We shall adjust the contract (with the two partners)
in line with the new basis," Assistant to the City Secretary for
Development Affairs IGKG Suena said at City Hall on Thursday.
Suena said the revisions included a new basis for calculating
water charges and capital expenditure, and would form the
guidelines for tap water operation in the next five years.
"Under the new basis, we hope to be able to finish paying off
our debts by 2007."
City Regulatory Agency head Ahmad Lanti said earlier that the
total debt owed by PAM Jaya to the Ministry of Finance amounted
to Rp 1.8 trillion (US$208 million).
According to Suena, PAM Jaya, TPJ and Palyja would meet next
week to discuss several recommendations made by an international
combined experts team of London-based independent auditor Stone
Webster, which finished its audit report in mid-March.
"There are significant differences, relating to the
recommendations made by the ICE team, between PAM Jaya and its
two partners. That's why they asked the administration's help to
resolve the differences," he said.
Suena added the meeting would come up with a calculation that
would be approved by the three companies.
The new calculation would then be presented to Governor
Sutiyoso and Minister of Settlement and Regional Infrastructure
Soenarno for their approval.
When asked if the new calculation would lead to another water
rate hike, Suena nodded.
"But the increase will be based on the companies' needs and
the prevailing situation," he said.
Many of Jakarta's 900,000 tap water consumers have complained
about poor services provided by tap water operators, including
repeated disruption of water supply.
Despite increases in tap water rates, PAM Jaya's financial
position has continued in the doldrums. Water theft and a leaky
pipe network have been blamed as a cause of massive losses.