Japanese firm to start subway project next year<\/p>\n
JAKARTA (JP): Itochu Corp. of Japan has pledged to start the
\nconstruction of the repeatedly delayed 14.5-kilometer subway
\nproject next year, Governor Sutiyoso said yesterday.<\/p>\n
The company, together with the Japanese government, also vowed
\nto fund the US$1.5 billion project by providing a soft loan at an
\ninterest rate of 0.75 percent per annum and with an option to
\nmake the payment over 40 years, said Sutiyoso.<\/p>\n
Itochu has estimated that the project would be completed in
\n2003.<\/p>\n
According to Sutiyoso, the Japanese commitment was verbally
\ndisclosed to him during his controversial three-day visit to the
\nPhilippines this week.<\/p>\n
The governor, however, refused to give other details about his
\nmeeting with the Japanese investors.<\/p>\n
\"The details (of the Japanese commitment) will be submitted by
\nthe foreign investor next month,\" he told the media.<\/p>\n
Showing a photocopied invitation signed by Ryuji Nakamura of
\nAlmec Corporation Japan, Sutiyoso said he was in the Philippines
\nat the invitation of Almec, a consultant for Itochu.<\/p>\n
In the letter dated 23 June 1998, Nakamura invited Sutiyoso
\n\"to discuss, examine and experience the MRT (Mass Rapid Transit)
\nsystem in Manila\".<\/p>\n
Sutiyoso said he was happy with the trip and willing to
\nimitate the construction system of the Manila subway in
\ndeveloping the Blok M-Kota subway here.<\/p>\n
\"I chose the Manila subway construction system as it employs
\n60,000 people a day. This would be more appropriate to be
\nimplemented here in Jakarta,\" he said.<\/p>\n
The previous proposal for the country's first underground
\nsubway submitted by a consortium of Indonesian, Japanese and
\nGerman companies, called the Indonesia Japan European Group
\n(IJEG) cost \"too much money and would use much high-tech
\nequipment\", Sutiyoso said.<\/p>\n
\"As there are so many people who need jobs these days, we'll
\nchoose a project which will employ a great number of people,\" he
\nsaid.<\/p>\n
According to Sutiyoso, IJEG's proposal would cost $2.4
\nbillion.<\/p>\n
A cooperation agreement on the project between the city
\nadministration and IJEG, in which Itochu led the Japanese
\ncompanies, was signed in August 1995.<\/p>\n
The planned 17-station subway was initially scheduled to start
\nin April last year but was delayed until June. It was delayed
\nagain due to the monetary crisis.<\/p>\n
Sutiyoso hoped that the project could be carried out soon.<\/p>\n
At the least, he said, the construction work from Blok M to
\nMonas (the National Monument) could be completed before his first
\ntenure ends in 2001.<\/p>\n
The exchange rate for the project's funding has been set at Rp
\n10,000 per US dollar.<\/p>\n
\"I am optimistic that we can pay the debt on time as I think
\nwe won't be hit by the economic crisis for 40 years,\" he said.<\/p>\n
Based on the current rate of Rp 14,000 per US dollar, the $1.5
\nbillion investment to be prepared for the project is equivalent
\nto 21 trillion, or 16 times the city's 1998\/99 fiscal year budget
\nof Rp 1.3 trillion.<\/p>\n
Sutiyoso's departure for the Philippines on Tuesday afternoon,
\nwhich occurred without any explanation, was queried by city
\ncouncilors as it came at a time when the city was struggling both
\nwith the impact of the prolonged crisis and to bring the security
\nsituation under control.<\/p>\n
Until Wednesday, the only available information about
\nSutiyoso's journey came from a source at the city administration
\nwho said that Sutiyoso was to attend a junior soccer game.<\/p>\n
Deputy Governor for Administrative Affairs Abdul Kahfi then
\nclarified that the governor was on a mission to restore the
\ncity's image overseas after Jakarta was hit by massive riots in
\nMay and to attract foreign investors to return to the city.<\/p>\n
Kahfi said that it had no relation to any soccer game and that
\nthe city paid for the trip.<\/p>\n
Asked whether he met the Philippine officials or businessmen,
\nSutiyoso said that the visit was too short to meet that many
\npeople.<\/p>\n
However, he admitted that his visit was also related to a
\njunior soccer game there.<\/p>\n
\"I am chief of the mission but I had asked people from the
\nMinistry of Education and Culture to replace me.<\/p>\n
\"I got a permit from the minister of home affairs to go and I
\nalso sought verbal permission from President Habibie during the
\ninauguration of the cheap market at Monas (last Saturday),\" he
\nsaid.<\/p>\n
The governor said he watched one soccer game. (ind)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/japanese-firm-to-start-subway-project-next-year-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }