PDAM Manado in trouble

PDAM Manado in trouble

MANADO, North Sulawesi: A tap water company belonging to the
Manado mayoralty is on the brink of financial collapse, according
to its director.

Hany Roring, the director, said that the company's revenue had
not matched its expenses.

"Only this year we have suffered a Rp 100 million deficit," he
said, blaming the increase in electricity bills and the high
price of pipes.

According to Roring, his office's monthly electricity bill is
Rp 300 million. "The amount is much higher than the employees'
monthly salaries."

The maintenance of the distribution pipes was also costly, he
said. "Up till now we have repaired only 67 percent of the
leaking pipes."

"If by the end of August no efforts to rescue the company have
been made, the company will close down. This means that thousands
of people living in Manado will no longer receive tap water," he
said.

"We have to increase the water rates by between 53 percent for
households, places of worship and institutions like hospitals and
71 percent for industries starting from August. We hope that
consumers will be able to understand this. We call on consumers
to pay their bills on time. (48/sur)