Seven projects shelved again<\/p>\n
JAKARTA (JP): The government announced last night that it was
\nshelving seven megaprojects and put another eight under review,
\nfor the second time in five months.<\/p>\n
The decision was contained in a decree signed by President
\nSoeharto yesterday, Minister\/State Secretary Moerdiono was quoted
\nby Antara as saying.<\/p>\n
The news agency said Moerdiono phoned it with the story.<\/p>\n
The 15 projects -- eight power projects, four toll road
\nprojects, one airport project, one building project and one
\nequipment-provision project -- were among dozens originally
\nshelved or reviewed in September in a bid to save billions of
\ndollars of badly needed foreign currency.<\/p>\n
They were revived Nov. 1, but the presidential decree only
\nbecame known to the public a week after it was signed.<\/p>\n
When news of their resurrection came, there were allegations
\nof nepotism because they were projects tied to politically well-
\nconnected business groups.<\/p>\n
The sudden about face also raised doubts about the
\ngovernment's commitment and ability to see through tough economic
\nreforms.<\/p>\n
The latest decision was taken by the government to reaffirm
\nits commitment to handle the monetary crisis, Antara said.<\/p>\n
The government had intended to continue with the projects, but
\nafter another review, it was learned they required huge financing
\nthat could undermine the government's effort to deal with the
\nmonetary crisis, Moerdiono said.<\/p>\n
\"That's why the President decided to shelve them,\" he said.<\/p>\n
One of the projects affected is the controversial Tanjung Jati
\nC power project in Jepara, Central Java. The 1,320-megawatt (MW)
\ncoal-fired power project worth $1.77 billion was awarded to
\nConsolidated Electric Power Asia (CEPA) Indonesia in reward for
\nits willingness to reduce the price of another power project,
\nTanjung Jati B, also in Jepara.<\/p>\n
Other power projects include the 1,320-MW coal-fired Tanjung
\nJati A power plant, also in Central Java, being developed by a
\nconsortium made up of President Soeharto's daughter Siti Hediati
\nPrabowo and the Bakrie Group; the 330-MW Sarulla geothermal power
\nproject in North Sumatra owned by a consortium of the U.S. Unocal
\nCorp and the Nusamba Group of Muhammad \"Bob\" Hasan; and the 55-MW
\nPatuha geothermal power plant in West Java by a consortium
\ncontrolled by California Energy.<\/p>\n
The other power projects are the Karaha geothermal power
\nplant, unit one and two of the Drajat geothermal power plant, the
\nAsahan I hydropower plant and the Palembang Timur combined-cycle
\npower plant in South Sumatra, which is sponsored by PT Astra
\nInternational. (emb\/prb)<\/p>\n
Table A: Projects put under review<\/p>\n
No. Project Value (US$m) Location<\/p>\n
1. Semarang Section C toll road na C. Java<\/p>\n
2. Ujungpandang toll road 51 S. Sulawesi<\/p>\n
3. Pondok Aren-Serpong toll road na W. Java<\/p>\n
4. Jamsostek tower project na Jakarta<\/p>\n
5. Patuha 1 geothermal power plant 95 W. Java<\/p>\n
6. Asahan 1 hydropower plant 180 N. Sumatra<\/p>\n
7. Tanjung Jati A steam power plant 1,660 C. Java<\/p>\n
8. Tanjung Jati C steam power plant 1,770 C. Java<\/p>\n
Table B: Projects postponed<\/p>\n
No. Project Value (US$m) Location<\/p>\n
1. Aloha Waru-Tg. Perak toll road 247 E. Java<\/p>\n
2. Karaha 1 geothermal power plant 380 W. Java<\/p>\n
3. Sarulla geothermal power plant 330 N. Sumatra<\/p>\n
4. Darajat 1, 2 geothermal power plant 475 W. Java<\/p>\n
5. Palembang Timur combined<\/p>\n
cycle power plant 168.5 S. Sumatra<\/p>\n
6. Construction and management of<\/p>\n
new airport in Medan na N. Sumatra<\/p>\n
7. Improvement of meteorological and<\/p>\n
geophysical equipment project na<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/seven-projects-shelved-again-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }