Water privatization must not neglect poor

Water privatization must not neglect poor

JAKARTA (JP): Privatization of water services must not lead to
poor people being denied clean and healthy water, State Minister
for the Environment Sonny Keraf warned local administrations on
Tuesday.

Water privatization was the greatest concern of
nongovernmental organizations around the globe following last
year's world water forum in The Hague, Sonny said.

While this concern should be taken into account, it did not
mean private companies should be banned from being involved in
providing tap water.

"Privatization should not restrict access to clean and healthy
water to those who have money, neglecting people who are poor,"
Sonny was quoted by Antara as saying.

Jakarta tap water company PAM has been involving foreign
investors in its business since last year in efforts to boost
income and resources.

Its joint venture with Thames Water Overseas Ltd. of Britain
services eastern Jakarta, while another joint venture with Suez
Lyonnaise des Eaux of France services the capital's western
areas.

The City Council has approved a rise in tap water tariffs but
exempted social institutions and poor customers. Governor
Sutiyoso, however, has yet to issue a decree allowing the new
rates to take effect.

To avoid the possibility of privatization leading to profits
being put before people, Sonny said local government should
maintain control over tap water management.

He also proposed a cross-subsidy system under which rates for
wealthy customers would be increased to ensure clean water for
the disadvantaged.

"There must be a certain proportion of water provided for the
poor and people who cannot afford to pay for clean water," Sonny
said. (amd)