'Water supply won't hurt PAM Jaya privatization'

'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)