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)