Construction of subway project delayed by financial problems<\/p>\n
JAKARTA (JP): The construction of the long-awaited subway
\nproject will be delayed indefinitely because of new problems,
\nmainly from its financial scheme, an official said yesterday.<\/p>\n
The head of the city's Development Planning Board, Budihardjo
\nSukmadi, said besides the financial problem, the project also
\nneeded government approval, which has not been officially issued
\nyet.<\/p>\n
"Now everything is back to stage one again..." Budihardjo said
\nwithout giving details.<\/p>\n
He declined to comment on whether the problem of the project's
\nfinancial scheme was caused mainly by a fare proposal from a
\nconsortium in charge of the project.<\/p>\n
The consortium consists of local companies PT Bakrie
\nInvestindo, PT Pembangunan Jaya, Lippo Group, PT Bukaka
\nCorporindo and PT Steady Safe, and firms from France, Canada,
\nJapan, the United States, Germany and Australia,<\/p>\n
"Just be patient for progress," Budihardjo said.<\/p>\n
The US$2.2 billion project, which will connect Blok M in South
\nJakarta to downtown Kota, was originally scheduled to start
\nconstruction in April, but was later delayed until June. And up
\nuntil yesterday no more news was heard about the project.<\/p>\n
Aburizal Bakrie, who heads the Indonesian-Japanese-European
\nconsortium, said in March that the government gave a green light
\nto investors to begin the 14.5-kilometer project.<\/p>\n
The green light was given under several conditions, including
\nthat the government would not provide any loan guarantees.<\/p>\n
Bakrie denied that the project was delayed due to differences
\nover the fares. He also denied that there were technical or
\ninvestment problems concerning the subway project.<\/p>\n
The consortium agreed long ago to fund 100 percent of the
\nproject, he said.<\/p>\n
The municipality, however, underlined the importance of a
\npresidential decree to approve the project.<\/p>\n
Deputy Governor of Economic and Development Affairs Tb.M. Rais
\nsaid recently that the decree was essential to determine the
\ncity's role in the project.<\/p>\n
The 17-station subway was an initial step in a long-term plan
\nto ease traffic congestion.<\/p>\n
The city and the consortium signed a memorandum of
\nunderstanding in August 1995.<\/p>\n
In July 1996, one of Soeharto's sons, Bambang Trihatmodjo,
\njoined the consortium. (ste)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/construction-of-subway-project-delayed-by-financial-problems-1447893297",
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