Retrenchment plan will not affect CMNP toll road project<\/p>\n
JAKARTA (JP): Publicly listed toll road operator PT Citra
\nMarga Nusaphala Persada (CMNP) said yesterday the government's
\nretrenchment of the country's toll road development would not
\naffect its projects.<\/p>\n
Finance Director Tito Sulistio said the company's toll road
\nprojects would continue despite the government's cutback
\nmeasures.<\/p>\n
He acknowledged that the company's 36.6 kilometer Waru-Tanjung
\nPerak toll road in Surabaya was one of the projects which should
\nbe reviewed.<\/p>\n
\"But this project will go ahead because we have no problem
\nwith financing,\" Tito said.<\/p>\n
The government announced Tuesday the postponement or review of
\nRp 105 trillion (US$35.6 billion) worth of government or state-
\nrelated projects.<\/p>\n
They include the postponement of 29 toll road projects and a
\nreview of 19 others.<\/p>\n
The Waru-Tanjung Perak toll road project in Surabaya is
\nincluded on the list of projects to be reviewed. This means the
\nprojects can go ahead as long as investors have the money.<\/p>\n
Tito said the company had no problems with financing the Waru
\nproject as the company had issued bonds worth $125 million in
\nLuxembourg and another worth Rp 275 billion in Indonesia.<\/p>\n
Earlier this month, he said, the company had raised Rp 500
\nbillion from the rights shares issuance.<\/p>\n
\"There is no reason for us to postpone the project. We have
\nthe funds to finance the project,\" Tito said.<\/p>\n
The project will be developed in three stages. The first
\nstage, covering 14.4 kilometers, will connect Juanda and Waru and
\nis expected to be completed in 1999.<\/p>\n
The second stage, covering 11.1 kilometers, will link Tanjung
\nPerak and Kenjeran and is expected to be completed by 2000. The
\nthird phase, 11.3 kilometers, will connect Tanjung Perak and
\nTambak Oso and is expected to be completed in 2001.<\/p>\n
Citra Marga Nusaphala Persada is controlled by President
\nSoeharto's eldest daughter, Siti \"Tutut\" Hardiyanti Rukmana.<\/p>\n
Tito also said yesterday the company had to revise down its
\nnet profit projection to Rp 141 billion from Rp 150 billion this
\nyear due to the currency turmoil.<\/p>\n
But he said the currency crisis, which has hit Indonesia over
\nthe past few months, had not adversely affected the company.<\/p>\n
\"Even if we suffer a foreign exchange loss, it will be
\ncompensated by the interest income,\" Tito said.<\/p>\n
He said the company predicted a Rp 55 billion foreign exchange
\nloss this year. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/retrenchment-plan-will-not-affect-cmnp-toll-road-project-1447893297",
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