'Water supply won't hurt PAM Jaya privatization'

JAKARTA (JP): Minister of Public Works Radinal Moochtar says that the supply of raw water will not affect the privatization plans of city-owned water company PAM Jaya.

Raw water is the technical term for pre-processed river water.

"I can assure you that the raw water supply will be enough," he told reporters on Wednesday after meeting with Governor Surjadi Soedirdja about PAM Jaya, which is scheduled to be privatized by the end of the year.

"The water supply plan should have been implemented last June but we now expect it to be realized next January. Hopefully, more Jakartans will enjoy tap water by that time," he said.

Radinal said that the two private companies interested in investing in PAM Jaya demanded earlier this year that raw water supplies be guaranteed until 2005.

The private companies are Salim Group, belonging to tycoon Sudono Salim, and PT Kekar Plastindo, which belongs to Sigit Hardjojudanto, the eldest son of President Soeharto.

Privatization is expected to help the company improve its services and reduce water leakages by 10 percent.

The two companies have agreed to install water pipes, expand tap water distribution and build water processing centers.

According to the agreement, the city administration will provide 40,000 cubic meters of raw water per second as demanded by the company.

"Half of the supply will be from the Ciliwung Barat river and the remaining 20,000 cubic meters will come from the Ciliwung Timur," he said.

Radinal added that a 70-kilometer pipe will be built to carry water from the Jatiluhur dam in West Java to Jakarta. (yns)