Water talks continue at a trickle

JAKARTA (JP): Negotiations of planned cooperation between the city-owned water company and private investors are going slowly and might hamper plans to start operations in July.

The technical and production manager of PAM Jaya, Rama Boedi, said yesterday many aspects were being discussed so as to ensure mutually beneficial cooperation.

When asked what aspects were difficult to agree on, Rama only said one was the possibility that the city would have to compensate investors if they could not continue cooperation, Antara reported yesterday.

The plan to work with the private sector aims to increase water quality and distribution services.

Investors are PT Garuda Dipta Semesta under the Salim group, PT Kekarpola Airindo, owned by President Soeharto's eldest son Sigit Harjojudanto, French Lyonnaise des Eaux and British Thames Water International.

Rama, to be installed today as PAM's new director, assured the authority the municipality would continue to set water fees.

Councilors have voiced concern that private sector involvement would lead to increased water fees in their search for profit. (anr)