Busway project sparks further controversy<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The busway project, scheduled to commence operation in six
\nmonths, appears to be unclear, as officials of the city
\nadministration issued contradicting statements about the
\ncontroversial plan.<\/p>\n
Irzal Djamal, who chairs the team responsible for the project,
\ndenied that the city administration had appointed private
\ncompanies to procure 60 buses for the bus rapid transit (BRT), or
\nbusway project.<\/p>\n
Earlier last week, however, head of the City Transportation
\nAgency Rustam Effendy said two companies -- Hino and Mercedes --
\nhad been named to procure the buses to serve the 12.9-kilometer
\ncorridor between Blok M, South Jakarta, and Kota, West Jakarta.<\/p>\n
The companies were appointed without a tender as the buses had
\nto be ready before the December deadline, he added.<\/p>\n
Rustam defended his administration's move to appoint the two
\ncompanies without a public bidding, because it was an emergency.<\/p>\n
However, Presidential Decree No. 18\/2000 requires all regional
\nadministrations to open a tender for any project worth at least
\nRp 50 million in their provinces, except in emergencies.<\/p>\n
Rustam said that the New Armada assembling company had also
\nbeen appointed, to assemble the 60 buses.<\/p>\n
Meanwhile, Irzal said Hino and Mercedes were appointed only to
\nprocure two buses used for a recent trial of the busway project,
\nand not the entire fleet of 60 buses.<\/p>\n
He could not say whether the procurement of the buses would be
\npassed through a tender mechanism or through the direct
\nappointment of companies.<\/p>\n
\"If the procurement is to be held without a tender, they (the
\ncity administration) should explain why. The procedure must
\ncomply with the presidential decree,\" Irzal told The Jakarta Post
\nover the weekend.<\/p>\n
He could not say whether the time constraint -- the busway
\nproject was initiated in 2001 -- could be categorized as an
\nemergency under the presidential decree on procuring goods and
\nservices for government institutions.<\/p>\n
Irzal insisted that the procuring of the 60 buses should abide
\nby all stipulations in the decree.<\/p>\n
Article 17, Paragraph 4 of the presidential decree stipulates
\nthat there are only four conditions under which regional
\nadministrations are permitted to forego a tender for development
\nprojects.<\/p>\n
The conditions are as follows: One, if the value of the
\nproject is less than Rp 50 million; two, if none of the
\nparticipants are eligible to bid in a tender; three, if the
\nproject cites emergency\/specific conditions approved by a
\nminister, head of a non-ministerial institution, governor, mayor
\nor directors of state-owned companies; and four, if there is only
\none supplying company.<\/p>\n
However, the \"emergency condition\" was not clearly defined.<\/p>\n
Governor Sutiyoso said he could understand why the procurement
\nof the 60 buses should proceed without a tender.<\/p>\n
The Jakarta administration has allocated Rp 50 billion from
\nthe city budget to procure the 60 buses. The figure is part of
\nthe Rp 117 billion earmarked to fund the busway project.<\/p>\n
Rustam said more money was needed to finance the busway
\nproject, arguing that Rp 117 billion was inadequate to cover the
\nsecurity costs and public campaigns for the project.<\/p>\n
He refused to mention how much additional money would be
\nneeded, saying that his office was in the process of calculating
\nit.<\/p>",
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