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)