Medan Water Supply

active

In May 1997, Suez Lyonnaise des Eaux (renamed SUEZ in May of 2001) was awarded a 25-year BOT contract for the construction and operation of a water supply plant in Medan, Northern Sumatra Provence. Medan had about 1 million connections out of a population of 2.5 million. The first phase of the plant was due to be completed in the year 2000 with a capacity of 170,000 cubic meters per day. The second phase was to be completed in 2003 and increase the capacity to 260,000 cubic meters per day. To implement the contract, PT Tirta Lyonnaise Medan was created as the the joint venture project company between SUEZ water subsidiary Ondeo (85%) and the state-owned water company PDAM Tirtanadi Propinsi Sumut (Tirtanadi) (15%). Total investment in the project was to amount to US$85 million. Tirtanadi was to provide 7 hectares of land in Limau Manis, Deli Serdang regency, North Sumatra and SUEZ was to initially inject Rp 120 billion (US$49 million) in the plant. Under a water purchase agreement signed in July of 2000, Tirtanadi was to purchase the treated drinking water supplied by SUEZ at Rp 975 per cubic meter and then sell it to consumers at Rp 1,150 per cubic meter. None None