Indonesian Political, Business & Finance News

Water company studying pipe project proposals

Water company studying pipe project proposals

JAKARTA (JP): The City Water Company (PAM Jaya) is studying proposals drafted by 10 private investors for the installation of pipe networks that will provide better water distribution to the public, the water company's director, H. Syamsu Romli, announced yesterday.

Last week the city administration raised artesian well fees for household, social, commercial and industrial use between 150 to 250 percent. With the hike it is expected that PAM Jaya will be able to provide well water distribution to the public.

Of the 10 investors, two are foreign companies, one from France and the other from England. PAM Jaya expects to finish processing the proposals within three to four months.

"From this cooperation we have some advantages and can get funds and expertise. At present it would be difficult for us to install a new pipe network or improve the quality of our workers due to limited funds and a lack of expertise," Syamsu said.

Cooperating with private investors will not only facilitate the expansion and rehabilitation of the pipe network, he added, but improve the management.

It is expected, he said, that the project will be completed by the end of this year.

In 1995 PAM Jaya served 56 percent of the city's demand for clean water and in 2000 (without private investor involvement). It is expected that it will accommodate 63 percent of the demand. The company will give priority to customers living in places, where the conditions of artesian wells are poor, like in North Jakarta (near the beach) and Central Jakarta, which is a highly populated area, and West Jakarta.

The current project is designed to reduce the use of artesian wells and to prevent the ground water level from declining further. The city administration is striving to control artesian well use, fearing that excessive use will speed up sea water intrusion into the capital's ground water system. The usage of artesian wells must be limited through stricter permit procedures so as to avoid further degradation of land and the water system in the capital. (31)

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