Thames Water obtains credits
Thames Water obtains credits
JAKARTA (JP): Thames Water International of Britain announced
in a statement yesterday that it had received credit facilities
of US$200 million to upgrade and expand the water supply system
in the eastern half of the capital.
The statement was made after the signing of an agreement with
a syndicate of international banks led by ING Bank NV in London
on July 24.
Earlier this month Thames also obtained loans amounting to $50
million from the European Investment Bank for the same purposes,
the statement made available to The Jakarta Post said.
Thames Water is responsible for managing, operating,
maintaining, expanding and improving the water supply system for
the eastern part of Jakarta in cooperation with Jakarta
administration-owned water company PDAM Jaya.
John Hurcom, the firm's president, said, "The credit
arrangements are fully in accord with our contractual commitment
under the cooperation agreement with PDAM Jaya to have financing
agreement in place by Aug. 1, 1998."
The loans represent about 70 percent of the total investment
in the project to be developed over the next five years. The
remaining 30 percent is equity provided by Thames Water.
"These facilities together with money already invested or
committed by our shareholders will be used in both the
refurbishment and expansion of the treatment and distribution
facilities for clean water services in our supply region," Hurcom
said.
"The loans not only reflect our commitment to the water
project, but they also demonstrate the tremendous support of the
international financial community to Thames' ability to manage
the project efficiently and professionally," he said.
The firm announced a Rp 150 billion (US$10.8 million)
investment for pipe refurbishment last month.
All of the investment will be used during the next five years
to meet the target of supplying clean water to 70 percent of the
area's population, up from 52 percent at present; reduce
nonrevenue water to 35 percent; and to increase water pressure up
to 7.5 meters within 10 years. (ivy)