Jakarta Monorail warned for sluggish progress<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
Governor Sutiyoso chided PT Jakarta Monorail (JM) on Monday over
\nits sluggish progress in the construction of two monorail lines
\nin the capital, which are scheduled to be completed in the middle
\nof 2007.<\/p>\n
He said JM should immediately complete its financial closing
\nby securing investors or face termination of its agreement with
\nthe city administration.<\/p>\n
\"PT Jakarta Monorail has promised that the financing of the
\ntwo lines of the monorail construction would be concluded in
\nSeptember, but until now we have not received any report about
\nthe progress,\" Sutiyoso said on Monday.<\/p>\n
\"We have ordered the city secretary to send a 'love' (warning)
\nletter to the company so that it can immediately complete the
\nfinancial closing. Otherwise, we will find other companies to
\nbuild the monorail in the city.\"<\/p>\n
According to JM director Sukmawaty Syukur, the company was in
\nthe final stages of the financial closing. She added that JM
\nwould report the progress to the governor on Wednesday.<\/p>\n
Sukmawaty said JM would carry out a shareholders meeting on
\nFriday to try to end the internal rift between its supporting
\ncompanies -- PT Indonesia Transit Central (ITC) and Omnico
\nSingapore, Pte. Ltd.<\/p>\n
ITC owns 55 percent of JM shares, while Omnico owns the
\nremaining 45 percent.<\/p>\n
According to her, several local and foreign financial
\ninstitutions had expressed interest in financing the monorail
\nproject, but she added that further process could not be made as
\nlong as JM could not resolve its internal problems.<\/p>\n
The rift between ITC and Omnico was sparked by the assignment
\nof the Indonesia Consortium of Monorail Industries (ICMI) by ITC
\nas a rolling stock supplier for the project, which was rejected
\nby Omnico, which preferred to assign South Korea's Rotem.<\/p>\n
ICMI is supported by Bukaka Group, whose shares are partly
\nowned by the family of Vice President Jusuf Kalla, Madiun-based
\nstate rolling stock maker PT INKA and Bandung-based state
\nelectronics firm PT LEN Industry.<\/p>\n
It is also supported by Hong Kong-based Mass Transit Railway
\nCooperation. The consortium submitted a proposal estimate of $496
\nmillion for the project.<\/p>\n
Meanwhile, Rotem's Maglev technology would cost $540 million,
\nexcluding bank and consultants' fees, which the ITC claims would
\nbring the total investment to $826 million.<\/p>\n
Sukmawaty said Friday's meeting would, among others, decide
\nwhether Omnico would still stay with JM by increasing its shares
\nto or leave JM to be replaced by another company.<\/p>\n
JM and the administration had previously terminated a contract
\nvalued at $540 million for the same project with a Malaysian
\ncompany, MTrans Holding Bhd, due to financing problems.<\/p>\n
The monorail project was started in June last year and was
\nprojected to finish in 2007.<\/p>\n
When up and running, the monorail will cater to transportation
\nneeds in the prime business areas of the city through a 14.3-
\nkilometer line as well as a 13.5-kilometer line from Kampung
\nMelayu in East Jakarta to Taman Anggrek Mall in West Jakarta.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-monorail-warned-for-sluggish-progress-1447893297",
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