E. Java govt may ax Tommy's projects<\/p>\n
JAKARTA (JP): The East Java provincial administration looks
\nset to terminate the contract with a company partly owned by a
\nson of former president Soeharto to develop a drinking water
\nplant in Umbulan due its failure to complete the project.<\/p>\n
The head of the provincial economic affairs office, Tari
\nSugiono, said in Surabaya yesterday that PT Mandala Citra Umbulan
\nshould have realized the project this month under the terms of
\nthe contract with the East Java administration signed in 1994.<\/p>\n
But, thus far there were no signs that the company was going
\nto finish the project by the deadline.<\/p>\n
\"If the company does not realize the project this month, we
\nshall terminate the contract. There are still a lot of bona fide
\ninvestors who are interested in the project,\" Tari was quoted by
\nAntara as saying.<\/p>\n
Mandala Citra is jointly owned by the Humpuss Group controlled
\nby Soeharto's youngest son Hutomo Mandala Putra, also known as
\nTommy, and the Ciputra group, controlled by property tycoon
\nCiputra.<\/p>\n
Under the contract, the consortium was to develop the US$250
\nmillion project under a 25-year build, operate and transfer deal.<\/p>\n
The water plant will take water from the Umbulan water spring,
\nalong the slopes of Mount Bromo, 55 kilometers south of the
\nprovincial capital of Surabaya.<\/p>\n
It is designed to carry 4,200 liters of water per second,
\n2,400 liters of which will be distributed to Surabaya, 1,350
\nliters to Sidoarjo regency, 250 liters to Pasuruan regency and
\n200 liters to Gresik regency.<\/p>\n
Mandala Citra won the contract four years ago in bidding which
\nreportedly also involved Tommy's brother Bambang Trihatmodjo,
\nsister Siti Hardijanti Rukmana and a number of foreign investors.<\/p>\n
Tari also said the East Java administration would also
\nterminate the contract with PT Sarana Sirkuitindo Utama, owned by
\nTommy and fellow auto racer Tinton Suprapto, to install
\ncomputerized facilities for vehicle roadworthiness tests in the
\nprovince, due to its failure to realize the project on schedule.<\/p>\n
Tari said that under the contract signed four years ago the
\ncompany should have finished installing the facilities last week
\nbut thus far the firm had done nothing.<\/p>\n
\"Formerly, we could do nothing but make complaints. Now in the
\nera of reform, no one is afraid (of Tommy),\" he said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/e-java-govt-may-ax-tommys-projects-1447893297",
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"sponsor": "Okusi Associates",
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