Indonesia:

Background In 1984, the Indonesian government moved the residents of Marunda, to an area in the north-east of Jakarta, in order to make way for a new airport. The new settlement lacked basic services, such as a reliable, clean water supply. Instead, women had to queue from 3am in order to collect water from standpipes for their families washing, cooking and drinking water. Alternatively, they could buy water from street vendors, which was very expensive.

Privatisation The lack of a piped water system also meant that the residents of Marunda faced health risks from sewage and other domestic waste, which wasn't being flushed away. However, the demand for water was so high, that the city authorities was unable to meet it, so they had to contract out projects to private companies. In 1997, Thames Water (UK) signed a 25 year contract, to operate under their subsidiary Thames PAM Jaya. This company has focussed on the operation of water treatment facilities, as well as developing the distribution of water.

Impact on the community As part of this contract, pipe laying began in Marunda in 1999, linking over 12,000 people to a supply of clean water direct to their homes. As the cost of this water is subsidised, families are now able to more money on other basic needs, such as food. Also, the removal of contaminated water has helped reduce rates of disease. So this is a successful example of a private company working with a city authority and a local community.