No hike in tap water price until 1997: Official
No hike in tap water price until 1997: Official
JAKARTA (JP): The head of city-owned water company (PAM Jaya),
Syamsu Romli said the administration would not increase the tap
water price until 1997.
Syamsu responded to questions from the City Council's
Commission C in a hearing yesterday. The commission wanted to
know if the tap water price would be increased after PAM Jaya
cooperated with private investors.
"The governor still has the right to control the price of tap
water despite the plan on cooperation with private companies,"
Syamsu said.
He said the agreement with PT Garuda Dipta Semesta and PT
Kekarpola Airindo would be signed next month. "But nothing has
been arranged to increase the price of the tap water. It is the
governor who has the authority to increase the price of water,
not the businessmen," Syamsu was quoted by Antara as saying.
Reports said Garuda Dipta Semesta was managed by Salim Group
and Kekarpola belongs to President Soeharto's eldest son Sigit
Harjojudanto.
The two private companies would cooperate with foreign
companies Lyonnaise des Eaux and Thames Water International,
Syamsu said.
"The deal will be carried out in a profit sharing scheme
within 25 years. The first five-year cooperation will need a
total investment of US$250 million. The money will be used to
build infrastructure: a pipe network and a treatment plant in
Cakung, East Jakarta," he said.
The new treatment plant will be designed to produce 6,000
liters of water per second with water from the West Java's
Jatiluhur dam.
In a separate interview the chief of the Commission C, Helmy
AR Syihab said cooperation with private investors deserved
support because the city administration did not have much money
to improve public services.
"What we are concerned about is the tariff. We don't want a
tariff hike because of the cooperation," he said.
PAM Jaya produces 18,000 liters of water per second and serves
only 430,949 of Jakarta's 1,640,380 families.
Syamsu said the cooperation with private investors would
benefit the administration, investors and the public.
"In 2011 all Jakarta families are expected to enjoy tap
water," he said. (sur)