The Beild Operate Transfer or BeT contract between Eda Ranu and a Malaysian company, JC-KRTA has been terminated as of Wednesday bythe new board of Eda Ranu.
Beard Chairperson, Mary Karo announced this yesterday sayingthe contract was unfair to Eda Ranu claiming it has not achieved its intended purpose after seventeen years.
The BeT contract was entered into in 1997 on an agreement which would see JC-KRTA build and upgradethe facilities owned bythen NCD Water and Sewerage Ltd now trading as Eda Ranu and transfer back tothem after 22 years.
This contract was considered unfair and terminated prematurely yesterday bythe new board chaired by Mary Karo.
Mrs Karo saidthe concessionaire in this case JC-KRTA has been onthe receiving end whilst Eda Ranu has paid for all operational costs.
She saidthe partner also established associate companies who were engaged to carry out works whilPNG companies were overlooked.
While Eda Ranu pays for water froPNG Power, JC-KRTA managesthe water treatment plant at Mt Eriama and is also in charge ofthe Bells section collecting all monies paid as bills by water users.
To this date, Eda Ranu management does not know how much money has been collected so far in bill payments.
The partner and all its employees have been informed ofthe decision and Eda Ranu CEO; Henry Mokono saidthe change will not affect all national employees currently working with JC-KRTA.
Deputy Chair and Principle of Mirupasi lawyers, Vincent Mirupase saysthey are ready to handle any legal implications that would come withtheir decision.
They assuredthe city residents thatthe change will not affect water inthe city.
Ruth Rungula, National EMTV News