Shareholders stall monorail project due to internal rift<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
A disagreement among shareholders of PT Jakarta Monorail (JM)
\nover who should supply 76 trains for the city's first monorail
\nline has stalled the whole project.<\/p>\n
A source close to the deal said that Omnico Singapore Pte.
\nLtd., which owns 45 percent of JM shares, had insisted on using
\ntrains produced by South Korea's Rotem, while PT Indonesian
\nTransit Central (ITC), which owns the remaining 55 percent, would
\nprefer to use trains produced by a local consortium.<\/p>\n
The source said that using Rotem technology would push the
\ncost up to US$826 million -- $345 million for the rolling stocks
\nor trains and its system and the remaining $481 million for line
\nconstruction.<\/p>\n
Should JM use the technology to be developed by an Indonesia
\nconsortium, the total cost of the project would stand at around
\n$426 million only -- $176 million for trains and its system and
\nthe remaining $250 million for line construction, the source
\nsaid.<\/p>\n
The source also said if JM used Rotem's cars, 60 percent of
\nthe revenue from the planned electronic road pricing (ERP),
\nenforced along the roads parallel to monorail lines, should be
\nallocated for the monorail project.<\/p>\n
Governor Sutiyoso, who granted the project to JM, confirmed
\nthe rift on Tuesday, and gave the consortium until Thursday to
\ndecide on the rolling stock supplier.<\/p>\n
\"We can not wait much longer,\" Sutiyoso said at City Hall.<\/p>\n
JM director Sukmawati confirmed the differences between ITC
\nand Omnico about the rolling stocks supplier, saying that
\nThursday's consultation with the administration was expected to
\nbridge the rift.<\/p>\n
JM was expected to announce the technology to be used in the
\nproject on July 28.<\/p>\n
Sutiyoso said that his administration preferred to use
\nmonorail cars produced by the Indonesia consortium, because of
\ncost considerations.<\/p>\n
\"With Rotem cars, the total price of the project would be over
\n$800 million. The investors are also asking for a major part of
\nthe turnover from ERP,\" he added.<\/p>\n
JM predicted that the ERP revenue would reach some $100
\nmillion per year.<\/p>\n
The Indonesian consortium, which came late to the project, is
\nsupported by several companies -- U.S. investment bank J.P.
\nMorgan, the Bukaka Group, state train carriage maker INKA, state
\nelectronic maker LEN Industries and Siemens. It is also supported
\nby Hong Kong-based Mass Transit Railway Cooperation (MTRC).<\/p>\n
The Bukaka Group is partly owned by the family of Vice
\nPresident Jusuf Kalla.<\/p>\n
JM and the city administration had previously terminated a
\ncontract valued at $540 million for the same project with a
\nMalaysian company, MTrans Holding Bhd, due to financing problems.<\/p>\n
The monorail project was started in June last year and is
\nexpected to be finished 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\/shareholders-stall-monorail-project-due-to-internal-rift-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}