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WATER ABLAZE - Patagonia Sin Represas

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Poster by Colombian<br />

activists, alluding to the<br />

murder of trade union<br />

members and used as part of<br />

an international campaign<br />

against the Coca Cola<br />

Company (photo: Indymedia of<br />

February 9, 2006)<br />

is nothing for it to worry about – it is business as usual.<br />

As far as the privatisation of mains water is concerned, Indonesia is<br />

no different from other countries. In 1997, the former RWE subsidiary<br />

Thames Water and the French Suez Group took over the water supply<br />

and distribution system in Jakarta. It is obvious that large-scale<br />

corruption was involved, because the son of the then dictator Suharto<br />

was awarded shares in the newly-founded utility. Also responsible<br />

for the setting up of this deal were the World Bank and the British<br />

Department of International Development. After seemingly neverending<br />

student protests, Suharto was forced to resign in May 1998.<br />

Although the new government acknowledged that corruption had<br />

been behind these privatisation deals, it nevertheless entered into new<br />

contracts with Thames and Suez in 2001. The population is finding<br />

it hard to accept these contracts, which specify that, in the case of<br />

premature termination, all investments made by Thames Water and<br />

Suez will have to be paid back, as well as the profits agreed on for the<br />

entire contractual duration of 25 years.<br />

It is not difficult to find other reasons for criticism. A large amount<br />

of mains water is being wasted as a result of leakage, water prices<br />

are constantly rising and investments in the infrastructure have not<br />

been made as promised. In theory, article 1365 of the civil law grants<br />

customers the right to demand compensation for services which have<br />

63

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