City sets deadline for JM to secure project funds<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The city administration has told PT Jakarta Monorail (JM) to
\ncomplete its financial closing by Jan. 31, 2006, or the contract
\nto construct two monorail lines in the city will be terminated.<\/p>\n
City secretary Ritola Tasmaya said on Wednesday that the
\nadministration would find another partner to develop the project.<\/p>\n
\"Governor Sutiyoso underlined that this is the last chance for
\nJM to complete its financial closing,\" said Ritola after the
\nmeeting between Sutiyoso and JM executives on Wednesday.<\/p>\n
The contract between the administration and PT JM expired in
\nJune 2005. The city extended the agreement for another six months
\nto give the opportunity to JM to find an investor.<\/p>\n
Sutiyoso asked the company on Monday to report its latest
\nprogress in finding investors for the project.<\/p>\n
Sutiyoso left the meeting early and refused to comment, while
\nJM executives only confirmed the deadline set by the
\nadministration.<\/p>\n
According to Ritola, JM executives explained to the meeting
\nthe progress of the financial closing for the US$496 million
\nproject and the planned shareholders meeting on Friday.<\/p>\n
JM has picked Singapore-based company Global Metrochem Holding
\nLtd. as its new partner to raise funds from commercial banks.<\/p>\n
Previously JM director Sukmawaty Syukur said at Friday's
\nshareholders meeting, JM would end the internal rifts between its
\ntwo supporting companies -- PT Indonesia Transit Central (ITC)
\nwhich holds 55 percent of shares and Omnico Singapore, Pte. Ltd,
\nwhich holds 45 percent.<\/p>\n
The rift between ITC and Omnico was sparked by the assignment
\nof the Indonesia Consortium of Monorail Industries (ICMI) by ITC
\nas a rolling stock supplier for the project, which was rejected
\nby Omnico, whose preferred firm was South Korea's Rotem.<\/p>\n
ICMI is supported by Bukaka Group, whose shares are partly
\nowned by the family of Vice President Jusuf Kalla, state rolling
\nstock maker PT INKA and state electronics firm PT LEN Industry.<\/p>\n
The monorail project began in June last year and was then
\nprojected to finish in 2007.<\/p>\n
When up and running, the monorail will cater to transportation
\nneeds in the prime business areas of the city through a 14.3-
\nkilometer line as well as a 13.5-kilometer line from Kampung
\nMelayu in East Jakarta to Taman Anggrek Mall in West Jakarta.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-sets-deadline-for-jm-to-secure-project-funds-1447893297",
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"sponsor": "Okusi Associates",
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