Bambang joins the subway project<\/p>\n
JAKARTA (JP): Bambang Trihatmodjo officially joined the
\nIndonesian group of investors in the long-awaited subway project
\nconsortium when he signed a deal yesterday.<\/p>\n
The signing ceremony at Governor Surjadi Soedirdja's City Hall
\noffice was closed to the press. The City Hall information office
\nrefused to provide pictures of the signing.<\/p>\n
Bambang, one of President Soeharto's sons, and City Hall
\nofficials refused to comment.<\/p>\n
\"I just signed the MOU,\" Bambang said after the ceremony.<\/p>\n
The Bimantara Group boss also refused say which of his
\ncompanies was joining the huge project.<\/p>\n
Surjadi also refused to answer questions on the 14.5 kilometer
\nsubway project. \"I'm getting bored with talking about the
\nproject.\"<\/p>\n
The subway to connect Blok M in South Jakarta and downtown
\nKota, will be built by a consortium of Indonesian, Japanese and
\nEuropean companies.<\/p>\n
An agreement was signed by the Indonesian Japan European Group
\n(IJEG) consortium and the city administration in August 1995.<\/p>\n
The Japanese companies are led by Itochu Corp. The European
\nfirms are led by German Ferrostaal AG.<\/p>\n
The Indonesian investors, led by businessman Aburizal Bakrie,
\nare PT Bakrie Investindo, a subsidiary of the Bakrie Group; PT
\nPembangunan Jaya; PT Lippo; PT Bukaka\/PT Kuda Perkasa; PT
\nSuthamthabie and PT Steady Safe.<\/p>\n
Bakrie had earlier said that IJEG had long agreed to provide
\n100 percent of the finance for the US$1.5 billion Mass Rapid
\nTransit project. The consortium agreed to provide 30 percent on
\ntheir own and 70 percent from soft bank loans.<\/p>\n
Bambang said he was interested in joining the project last
\nJuly, and sent a proposal to the city.<\/p>\n
When asked why the agreement was signed so long after the
\nproposal was sent, Bambang said \"the time was not set by me\".<\/p>\n
When?<\/p>\n
Bakrie had earlier said the project would start in June. He
\nhas not set a new start date.<\/p>\n
The 17-station subway was originally to be completed before
\nAug. 17, 2001, Indonesia's Independence Day.<\/p>\n
No one could say yesterday when the project would begin.<\/p>\n
Bambang's proposal was accepted after PT Citra Lamtoro Gung
\nPersada, owned by his elder sister Siti Hardiyati Rukmana,
\nrefused to join the project.<\/p>\n
The head of the Citra Group public relations department,
\nFariza Y. Irawady, said they were not interested because they
\nwanted to concentrate on the three-level transit system
\nconnecting Bintaro in South Jakarta to Kota in West Jakarta.<\/p>\n
A joint venture, PT Citramoda Marga Kencana Persada, was set
\nup Monday to start the Rp 6.05 trillion (US$2.49 billion) three-
\nlevel transit system construction. This signing ceremony was also
\nheld at City Hall.<\/p>\n
Construction will commence in December and the transit system
\nwill start operating in 2001. It will comprise a toll road, a
\nlight rail transit and artery roads.<\/p>\n
The company will build 23.65 kilometers of toll road and 22
\nkilometers of light rail transit. (ste)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bambang-joins-the-subway-project-1447893297",
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"sponsor": "Okusi Associates",
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