Pipeline project underway

JAKARTA (JP): PT Pam Lyonnaise Jaya (Palyja), a joint venture firm owned by city-owned water company PDAM Jaya and French company Suez Lyonnaise des Eaux, is in the process of installing a 13-kilometer pipeline worth Rp 175 billion (US$13.72 million).

The pipeline installation project, which was kicked off by Deputy Governor of Development Affairs Budihardjo Soekmadi in Kebon Jeruk, West Jakarta, on Monday, is aimed at improving tap water services to customers in the western part of the capital.

Christian Michelon, Palyja's president, said the work was expected to be completed by the middle of next year and serve 700,000 new customers.

In implementing the project, Palyja is assisted by a team of 22 domestic suppliers and contractors, he said.

Michelon said that Palyja had pledged to invest Rp 2.15 trillion in the tap water system for the western part of Jakarta for a period of 25 years.

The company has thus far invested Rp 450 billion, he said.

He explained that Lyonnaise des Eaux had secured loans of $615 million from the European Investment Bank and $70 million from a consortium of international banks to realize its investment in Jakarta. (jun)