Petrobuild may sue govt over building project<\/p>\n
JAKARTA (JP): PT Petrobuild Indonesia, the winner of a tender
\nto construct an oil and gas center in Jl. MH Thamrin in Central
\nJakarta, plans to sue the Ministry of Mines and Energy if a
\ndispute over the building contract is not resolved fairly.<\/p>\n
\"The ministry granted a license to PT Pembangunan Perumahan to
\ntake over the construction of the center before settling its
\nlegal dispute with us. This is against our agreement,\"
\nPetrobuild's president, Syarief Tando, said yesterday.<\/p>\n
The ministry awarded the contract to Petrobuild in 1993 and
\nsigned with the company a 30-year building, operating and
\ntransfer (BOT) contract agreement later that year.<\/p>\n
The ministry revoked the contract last month and licensed
\nPembangunan Perumahan to take over the construction. The ministry
\nsaid Petrobuild had failed to comply with the agreed construction
\nschedule, had no equity and failed to obtain bank loans for the
\nproject.<\/p>\n
Syarief denied the ministry's accusations, saying that the
\nconstruction is on schedule and his partners -- PT Meta Epsi Duta
\nCo. and PT Bakrie Investindo -- had stated their willingness to
\ninject a total of US$45 million into the development.<\/p>\n
\"We also have a paid capital of $12 million and the state-
\nowned Bank Bapindo was going to provide us with a loan of about
\n$100 million,\" he said, adding that construction of the center
\nwas estimated to cost $150 million.<\/p>\n
T. Mulya Lubis, of the Indonesian Legal Association, is
\nsupporting Syarief's case.<\/p>\n
\"The BOT contract is irrevocable,\" he said.<\/p>\n
Based on the contract, any problem arising between Petrobuild
\nand the ministry must be resolved by the two sides through
\ndeliberations aimed at achieving consensus, Lubis said. If such
\ndeliberations fail to reach a consensus, the dispute should be
\ndecided through legal channels.<\/p>\n
\"Petrobuild is asking the ministry to solve the problem
\nthrough deliberation. But if we fail, we will take it to court,\"
\nhe said.<\/p>\n
Lubis said Petrobuild has already invested about US$15 million
\nin the center's construction. Petrobuild is also willing to
\ncooperate with a consortium appointed by the ministry to continue
\nthe construction, he added. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/petrobuild-may-sue-govt-over-building-project-1447893297",
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