Tangerang seeks foreign investors

Sumber:The Jakarta Post - 07 Februari 2006
Kategori:Air Minum
Barely scratching the surface of its service potential, Tangerang municipal water utility PDAM is offering foreign investment opportunities for two projects.

It is seeking Rp 500 billion to build two treatment plants to bring running water to 100,000 of the people on its waiting list.

"We are seeking foreign partners to invest in two projects," the company's president director, Achmad Marju Kodri, told The Jakarta Post on Saturday.

A Malaysian and a Singaporean have shown interest in the projects but the company has yet to request their bids.

"We hope to start building the plants in June so we can accept new customers in 2007," Kodri said.

PDAM is only seeking financial capital and will assume most of the construction, operation and supply risks under a build, operation and transfer agreement, he said.

Environmental impact analyses have been completed for both projects.

The company has promised to obtain water-use permits for 1,000 liters of water per second and building permits from the Tangerang administration.

One of the plants will be built on the banks of Cisadane River in Kebon Nanas, Pinang, and the other in Neglasari near Soekarno-Hatta International Airport.

When the two projects are completed, the company plans to seek foreign investment of over Rp 1 trillion for four more plants, which could meet the water needs of 200,000 customers.

"In the water sector, the only obstacle we have been facing is not being able to increase our rates because of fluctuations in macroeconomic growth, electricity and fuel prices," Kodri said.

The water utility cannot increase rates without the approval of the municipal council.

At present, the company, which was established in 1995, meets only 5 percent of Tangerang's water needs.

The company broke even up until 2003, when it achieved a net profit of Rp 120 million.

"The tap water business holds promise so long as there are no more power or fuel price increases," Kodri said.

Post Date : 07 Februari 2006