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PAM Jaya, Palyja renegotiate contract
City-owned water operator PD PAM Jaya and private water operator PT PAM Lyonnaise Jaya (Palyja) have agreed to renegotiate a contract in a move to improve the quality of water provision in the western part of Jakarta, where the latter operates.
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A worker controls the quality of raw water at the treatment facility owned by private tap water company PT Palyja in Central Jakarta. (JP/Dhoni Setiawan)
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ity-owned water operator PD PAM Jaya and private water operator PT PAM Lyonnaise Jaya (Palyja) have agreed to renegotiate contract in a move to improve the quality of water provision in the western part of Jakarta, where the latter operates.
The two companies agreed to renew the contract, which was first signed in 1997, last week following last year’s Constitutional Court ruling that allows cooperation between state-owned or regional government-owned companies with private water operators to manage clean water.
The old Law No. 7/2007, which was annulled last year, stipulated that clean water provision would only be controlled by state-owned or regional government-owned water operators.
“PAM Jaya and Palyja have agreed to start discussions to thoroughly review the Restated Contract Agreement [RCA],” PAM Jaya president director Erlan Hidayat said in a press release on Tuesday.
“The new regulation even more encourages PAM Jaya and Palyja to review the RCA to enhance and strengthen our cooperation and improve services for the people of Jakarta.”
The 1997 contract will end in 2023.
Last Tuesday, during the signing of the memorandum of understanding, Erlan said both parties would deal with the details of renegotiating the contract in the next six months. Included among the things to be negotiated in the new contract are water charges and the transfer of personnel.
Jakarta Deputy Governor Djarot Sjaiful Hidayat told the two companies to include in their discussions mechanisms to prevent water leakage, as he claimed 41 percent of the total production was lost that way. (bbn)
