East flood canal project depends on CGI loan<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The construction of the East Flood Canal might be postponed
\nindefinitely as it is wholly dependent on a loan from the
\nConsultative Group on Indonesia (CGI), a group of foreign
\ndonors.<\/p>\n
Adi Sarwoko Soeronegoro, a water resource director at the
\nSettlement and Regional Infrastructure Ministry, said that the
\ngovernment would discuss the funding with the Japanese Bank for
\nInternational Cooperation (JBIC) as a donor institution under the
\nCGI in July.<\/p>\n
\"The result of the meeting will be further discussed in the
\nNovember meeting of the CGI,\" Sarwoko told The Jakarta Post on
\nThursday.<\/p>\n
The project, which is expected to solve the city's flood
\nproblems, was scheduled to be officially inaugurated by Governor
\nSutiyoso on June 22, in conjunction with the city's 475th
\nanniversary. But because the central government has not yet
\ndisbursed its financial share to the project, the city had to
\npostpone it.<\/p>\n
Sarwoko said that the central government had planned to secure
\na loan from CGI to finance the project, which will cost Rp 4.9
\ntrillion (over US$500 million).<\/p>\n
The city administration also has its share to finance the
\nproject but it has not yet reached an agreement with the central
\ngovernment over how much it should share in the burden.<\/p>\n
With the financial glitches, it is unlikely that the project
\nwill be started this year. There is no guarantee that the JBIC
\nwould make a commitment to finance the project. If it agrees, it
\nis also unlikely that the disbursement will take place this year.<\/p>\n
Head of the Public Works Agency IGKG Suena said that the city
\nadministration only would be responsible for 10 percent of the
\ntotal Rp 4.9 trillion. While Sarwoko said the central government
\nwould only provide Rp 2.9 trillion for physical construction.<\/p>\n
The project's land clearance, which may cost Rp 2 trillion --
\nto pay compensation for those who now own property on the canal
\nsite -- will be financed by the city administration. Sarwoko
\nargued that the local administration should shoulder more of the
\nburden to the project as it had adequate funding since the
\nregional autonomy era began.<\/p>\n
Suena said that only 15 hectares of the total 250 hectares of
\nland for the project had been cleared. This year, the city
\nadministration only allocated Rp 22 billion for the canal
\nproject.<\/p>\n
The 23-kilometer East Flood Canal is part of the government's
\nplan to build a half-circle-shaped canal along the northern and
\neastern parts of the city that will function as a massive drain
\nfor the city's 13 rivers before emptying into the Java Sea off
\nNorth Jakarta.<\/p>\n
The other canal is the 14-kilometer long West Flood Canal
\nconstructed in 1924 by the Dutch colonial government. That canal
\nneeds to be upgraded and properly maintained as it has been
\nsilting up in recent years due to neglect.<\/p>\n
Sarwoko admitted development of the East Flood Canal would
\nsignificantly ease the flooding here. He said that the canal
\ncould reroute some 400 cubic meters per second from the rivers,
\nincluding the Cipinang, Sunter, Jati Kramat, Cakung, and
\nManggarai.<\/p>\n
The floods in January and February which covered some one
\nthird of the city claimed some 30 lives and caused some Rp 10
\ntrillion in financial losses.<\/p>\n
Yayat Supriatna, an urban planner from Trisakti University
\nsaid that the people, particularly the non-governmental
\norganizations should closely monitor the project, which would be
\nfinanced by foreign loans.<\/p>\n
Different from state budget funds, he added, the use of loans
\nwould lack some of the checks and balances from the House of
\nRepresentatives.<\/p>\n
\"Therefore, people should monitor the development of the
\nproject to minimize inefficient use of the money,\" he added.<\/p>",
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"sponsor": "Okusi Associates",
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