A group of investors will soon begin building the first ever private railway in Indonesia, worth US$1 billion, as a key part of the planned development of a massive $5 billion integrated industrial facility in East Kalimantan.<\/p>\n
The project\u2019s readiness was announced at a meeting Tuesday between Indonesian President Susilo Bambang Yudhoyono and the crown prince and deputy ruler of the Emirate of Ras Al Khaimah, Sheikh Saud Bin Saqr Al Qasimi.<\/p>\n
The two were joined by Gita Wirjawan, chairman of Indonesia\u2019s National Investment Coordinating Board (BKPM), Madhu Koneru, group CEO of MEC Holdings,<\/p>\n
Hari Sankaran, managing director and CEO of Infrastructure Leasing and Financial Services Ltd. (IL&FS), and Allen Alexander, the chairman, president and CEO of SavageCANAC Corporation, a media statement said.<\/p>\n
MEC Coal and MEC Infra, two joint ventures of MEC Holdings and Ras Al Khaimah Investment Authority, will develop a 130-kilometer railway line to facilitate the transport of raw materials and finished products in and out of East Kutai regency in East Kalimantan.<\/p>\n
Gita said MEC Infra had been able to purchase and clear the land for the entire corridor within just a few months.<\/p>\n
\u201cThis undertaking will create multiple benefits for the development of the local economy in East Kalimantan,\u201d Yudhoyono said in the statement.<\/p>\n
\u201cIt sets a positive tone for future investments from the Middle East.\u201d<\/p>\n
Sheikh Saud said, \u201cThis type of public-private, Middle Eastern-Indonesian initiative is a fantastic example of what can be accomplished when the fundamentals make sense for all parties involved.<\/p>\n
\u201cThis project will help meet the development needs of East Kalimantan communities, while also serving to meet the energy challenges in Asia.\u201d<\/p>\n
Under the project agreement, MEC Infra will invest up to $1 billion in constructing the railway line linking the mine site at Muara Wahau to Bengalon on the coast.<\/p>\n
MEC\u2019s mine and railway are central to the development of a complex of integrated industrial facilities.
\nThese will include a power plant fuelled by coal from MEC Coal, an aluminium smelter, a fertilizer plant and a high-capacity port terminal, Gita said.<\/p>\n
All these, he added, would require total \u201cinvestment value of $5 billion\u201d.<\/p>\n
MEC Coal has a 12,000 hectare coal concession in East Kutai.<\/p>\n
The statement also MEC and Nalco - an Indian government entity - would invest $2 billion for an aluminium smelter capable of producing 500,000 tons of aluminium a year, with another $2 billion for the construction of a 1,250-megawatt captive power plant and other facilities. Both are scheduled for completion by 2013.<\/p>\n
\u201cThis investment serves as a huge vote of confidence from an investor base with which Indonesia shares long-term strategic interests,\u201d Gita said.<\/p>\n
Over the next five years, the project is expected to create 5,000 new jobs in the province.<\/p>\n
MEC\u2019s Koneru said the project would help \u201ctransform East Kalimantan into a model for the future of Indonesia by providing a strong platform for growth, helping Indonesia to attract further investments\u201d.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesias-first-private-railway-project-ready-for-construction-1260947885", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }