Infrastructures needs $17b in new investments<\/p>\n
JAKARTA (JP): The government yesterday invited further private
\ninvestment in clean water supply, toll roads and transportation
\ninfrastructure projects.<\/p>\n
Minister of Public Works Radinal Moochtar and Minister of
\nTransportation Haryanto Dhanutirto revealed yesterday that new
\ninvestments of US$17.1 billion in the three above sectors are
\nopen for private participation for the next five years.<\/p>\n
Speaking at the Indonesia Summit 1996, an international
\neconomic seminar on Indonesia, Radinal said his office has
\nidentified 48 cities looking for private sector investment in
\ntheir water supply infrastructure.<\/p>\n
"The Ministry of Public Works is committed to supporting
\nprivate sector participation in water supply and will consider
\nappropriate support for each investment project on its merits,"
\nRadinal said.<\/p>\n
He estimated that the required investment in the water supply
\nin the 48 cities over the next five years stands at some $4
\nbillion.<\/p>\n
He explained that private investment in water supply could
\nrange from concessionaire contracts for operation to joint
\nventure capital investment for a build-operate-transfer or build-
\noperate-own scheme.<\/p>\n
The clean water supply business in most cities is currently
\nrun by local government-owned enterprises. There are some 300
\nlocal government water supply firms across the country.<\/p>\n
Radinal said his ministry shares a responsibility to provide
\nsome of the headworks for the development of water sources,
\ntreatment plants and, to a lesser degree, the transmission mains.<\/p>\n
He added that his office is committed to providing additional
\ninfrastructure with a combined capacity of 30,000 liters of water
\nper second to urban centers during the next five years, which
\nwill need an additional investment of $1.3 billion.<\/p>\n
"The rapid growth rate of urbanization is increasing the
\ndemand for urban water supply," Radinal said.<\/p>\n
In addition to water supply, the Ministry of Public Works has
\nalso identified 541 kilometers of toll road projects to be
\noffered to the private sector.<\/p>\n
He did not elaborate on the projects but said that they are in
\nJava, Sumatra and Sulawesi.<\/p>\n
He said the government expected investment in the toll road
\nsector for the current sixth five year-development plan, which
\nstarted in 1994, to total $4.2 billion.<\/p>\n
In the past two years to March 1996, the construction of 53
\nkilometers of toll roads has been completed, while 235 kilometers
\nis still under construction.<\/p>\n
Contracts for the construction of another 229 kilometers were
\nawarded in March, Radinal said.<\/p>\n
Meanwhile, Minister Haryanto noted that transportation
\ninfrastructure, excluding roads and vehicles, need a total
\ninvestment of $13.7 billion, of which $8.9 billion is expected
\nfrom the private sector.<\/p>\n
By April 1996, the government had received 43 proposals for
\ntransportation infrastructure projects under joint operation or
\njoint venture schemes with state-owned firms. The investments for
\nthese totaled $3.5 billion.<\/p>\n
The government has so far approved 10 proposals with total
\ninvestments of $1.2 billion. They include the construction and
\nmanagement of the third container terminal at Tanjung Priok port
\nin Jakarta, the development of dry-bulk facilities at Tanjung
\nPerak port in Surabaya, East Java, and calibration for air
\nnavigation.<\/p>\n
Haryanto said his ministry is currently processing other
\nprivate investment projects, including those on mass rapid
\ntransit facilities for urban transportation in Jakarta, the
\nManggarai integrated terminal also in Jakarta, Jakarta-Surabaya
\nexpress trains and new airports in Medan, North Sumatra, and in
\nLombok, West Nusa Tenggara. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/infrastructures-needs-17b-in-new-investments-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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