Govt to review 50 toll road projects<\/p>\n
JAKARTA (JP): State-owned toll road operator PT Jasa Marga
\nannounced on Monday it would review 50 toll road projects to
\ndetermine whether private firms had obtained contracts due to
\npreferential treatment.<\/p>\n
Jasa Marga president Maryadi Darmokumoro said 10 of the toll
\nroads were already operational, 13 were currently either under
\nconstruction or in the process of acquiring land, while the
\nremaining 27 projects were still in the planning stage.<\/p>\n
\"We have indications that many of the contracts were obtained
\nthrough corrupt, collusive and nepotistic practices, though this
\nhasn't been proven, because most of the deals were made through
\ndirect appointment instead of fair bidding,\" Maryadi said.<\/p>\n
The company plans to review the deals for potential contingent
\nliabilities, including clauses that require Jasa Marga to take
\nover debts from its partners or provide bridging finances to
\nthem.<\/p>\n
Jasa Marga will also look for indications of markups and
\nunfair distribution of revenue in projects with large
\ninvestments.<\/p>\n
The review's results, he said, could prompt the company to
\nrenegotiate agreements with some of its partners.<\/p>\n
But Maryadi assured that the company would not unilaterally
\npull out of any contracts, adding that any cancellations would be
\ndone according to existing rules.<\/p>\n
Jasa Marga will also take into consideration any possible
\neffects of the cancellations on the investment climate for toll
\nroads and investment in general.<\/p>\n
Projects not yet underway or in their planning stage will be
\noffered for tender again by the company, he said.<\/p>\n
On Sept. 2, the government reviewed and annulled several
\nbusiness deals signed by its agencies and enterprises with the
\nfamily and cronies of former president Soeharto.<\/p>\n
Maryadi said all of the 27 projects currently in the planning
\nstage had been obtained through political connections.<\/p>\n
He refused to name the companies which had allegedly used
\npolitical ties to score the deals, but many of the projects
\nlisted were linked to Soeharto's family.<\/p>\n
At least five of the projects are known to be controlled by
\nSoeharto's eldest daughter, Siti \"Tutut\" Hardijanti Rukmana.<\/p>\n
Publicly listed PT Citra Marga Nusaphala Persada, headed by
\nTutut, holds a 30-year construction and operation contract over
\nthe Cawang-Tanjung Priok toll road through 2019 and over the
\nTanjung Priok-Jembatan Tiga toll road through 2025. Both are
\ncurrently in operation.<\/p>\n
Other toll road projects linked to Tutut -- the Pondok Aren-
\nSerpong project in Tangerang, West Java; Jakarta's triple-tiered
\nproject; the Solo-Yogyakarta road in Central Java; and the Waru
\n(Aloha) Wonokromo-Tanjung Perak toll road in Surabaya, East Java
\n-- will also be looked at in the review.<\/p>\n
The projects, except for the Pondok Aren-Serpong road which is
\nunder construction, are currently in their planning phases.<\/p>\n
A toll bridge planned for the Sunda Strait, a project linked
\nto Soeharto's young grandson Ari Sigit, is also among the 50
\nprojects to be reviewed. Though it has yet to begin, the project
\nhas already gained approval from the Ministry of Public Works.<\/p>\n
Other projects already in operation to be reviewed are the
\nTangerang-Merak toll road in West Java, the Surabaya-Gresik road
\nin East Java, the Ujungpandang toll roads in South Sulawesi and
\nthe Semarang section C toll road in Central Java.<\/p>\n
Projects to be reviewed that are still under construction are
\nthe Jakarta outer ring roads, the Surabaya-Mojokerto project in
\nEast Java and the Semarang-Demak road in Central Java.<\/p>\n
Projects yet to begin that will be reviewed include a
\nSurabaya-Madura toll bridge, a Bali strait toll bridge and a
\nKapuk-Teluk Naga-Tangerang toll road. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-review-50-toll-road-projects-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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