multinationales.org multinationales.org

As a condition for the Troika’s financial assistance, Greece has been forced to implement a set of drastic austerity measures, including the privatization of several state-owned companies. The public water utilities of Athens and Thessaloniki are among the targets. Both are profitable companies, which no one there wishes to see pass into private hands. But the Greek government and its creditors seem bent on imposing policy whose economic merits and democratic legitimacy seem rather dubious. A French company is especially active among the candidates for privatizing water in Athens and Thessaloniki: Suez Environnement.

This article was originally published in French. Translation: Egor Lazebnik.

 Workers and privatisation.pdf

This paper reports the issues occur to workers in the middle of Jakarta water privatization. There are at least three major issues. First, and the most problematic, is the workers’ status. The cooperation agreement seems intentionally left this problem into confusion and contradiction with other regulations, that now thousands of workers’ status is not clear whether working for the water utility or the concessionaires. Second, the basic salary of seconded employees that is too low and does not increase as regulated. Third, the peculiar pension policy that harms the retired workers’ financial security.

  no pro-poor Jakarta_0.pdf

PAM Lyonnaise Jaya (Palyja) entered Jakarta water service as a private partner when the water utility PAM Jaya privatized its water service in June 6, 1997. It is now owned by a multinational corporation Suez Environment, Astratel, and Citigroup. Since then, Palyja has a sole right to serve the west part of Jakarta. More than a decade after that, it’s not hard to see that Jakarta water is not getting better as it was expected when the privatization undertaken. September 2010, produced by Amrte Institute for water Literacy and KRuHA-people's coalition for the rights to water

  Financial Machinations-1.pdf

In running the water service business, it is obvious that the private operators are more profit-oriented rather than actually improve their performance. It can be seen how they create an overpriced tariff to gain as high income as possible. This overpriced tariff caused the water utility suffers a shortfall, and more citizens are not able to afford piped-water. In addition, for financing operating activities, investment and financing, the private operator directors chose refinancing scheme by selling bonds or to be indebted to creditors. This practice drives the private operator to unethically claim that the bonds are used for improving the service, while they are actually for paying other long term debts.

 Questioning ADB_s loan to Palyja V3.doc

In August 2007, the ADB‘s Board of Directors approved a loan facility to PALYJA (PT PAM Lyonnaise Jaya), a private water company in Jakarta, Indonesia. PALYJA has operated in Jakarta for more than ten years since they got sole concession right to manage the piped water supply in the western part of Jakarta. PALYJA shares are owned by some of the world-class companies such as SUEZ Environment and Citigroup.

The Mercury Eye on Civil Society column 3 July 2007 eThekwini: drought hits the poors by Orlean Naidoo, Dudu Khumalo and Patrick Bond Is Durban a model for South Africa and the world? In the field of water, some say yes. National Geographic magazine awarded chief water official Neil MacLeod global recognition a few years ago, and the city won South African recognition as best metro in 2006.

 Critical Review.pdf

The process of Jakarta water privatization involved corruption and collusion, to exploit economic profit through the influence of political power. It is not surprising that later the private operators’ performance is not satisfactory. On the other hand, the contract is too advantageous for the private operators: it enables the private operators to gain high profit while being practically free from business risk, enables the performance standard to be flexibly adjusted, puts the water utility into termination trap, and causes prolonged problem of unclear workers’ status. If the current contract is continued, it harms the water utility, workers, and the citizen of Jakarta.