PAM Jaya to cooperate with private firms

PAM Jaya to cooperate with private firms

JAKARTA (JP): The city water company, PAM Jaya, has given
assurances that the firm's cooperation with private companies
would not have adverse financial effects on the public.

The director of the company, Syamsu Romli, said on Wednesday
that agreements to be signed between his company and private
companies will state explicitly that the city administration
retains exclusive authority to determine the price of tap water.

"The city administration will determine the price of tap water
and I can assure you that it will be affordable to all
Jakartans," Syamsu said.

He disclosed that PAM Jaya will sign a memorandum of
understanding with the Salim Group, owned by conglomerate Liem
Sioe Liong, and PT Kekar Plastindo, owned by President Soeharto's
eldest son Sigit Harjojudanto, in the near future.

The cooperation is aimed at improving the company's services
in providing tap water to Jakartans by reducing the level of
water leakages and expanding tap water distribution.

He added that the cooperation would have other advantages,
such as greater revenue for the company, larger water networks and
better services.

He said that under the agreements the two private companies
will be obliged to build water pipe installations to expand tap
water distribution and to build water installation centers.

"The private companies will also be involved at the management
level," Syamsu said, adding that PAM Jaya will repay the
investment later through rates paid by customers.

The cooperation includes the construction of a 70-kilometer
water distribution network linking Jatiluhur dam and Jakarta.

Currently, water comes to the centers from rivers, which has
resulted in pollution as well as water leakages, which take 45.13
percent of the company's total production of 12.235 liters per
second.

Assistant to City Secretary Prawoto Danoemihardjo said on
Tuesday that, by installing the new water pipes, the level of the
leakages is expected to drop to 30 percent.

Prawoto said that tap water leakages are also caused by old
water pipes, which will be replaced by new ones.

Recently, PT Kekar Plastindo signed a memorandum of
understanding with PAM Jaya, Thames Water International from
Britain and the state-owned Jatiluhur Dam Authority company to
conduct the water project, which is worth over Rp 1 trillion
(approximately US$457 million).

The project is expected to supply drinking water to about 80
percent of the city's population by the year 2005.

At the moment the water company can only serve 41 percent of
the current population of eight million. (yns)