Speedy agreement on subway project sought<\/p>\n
JAKARTA (JP): Both the municipality and the consortium funding
\nthe subway project should immediately seek common ground to avoid
\ndragging out the start of the long-awaited project, a councilor
\nsaid.<\/p>\n
Lukman F. Mokoginta of the Indonesian Democratic Party said
\nyesterday that neither party should let financial problems,
\nincluding projected fares, halt the project.<\/p>\n
He was responding to Governor Surjadi Soedirdja's announcement
\nMonday, that the consortium headed by Aburizal Bakrie would
\nreject the city's offer to extend the project's concession period
\nto more than 30 years.<\/p>\n
Surjadi was quoted by the Antara news agency as saying the
\nconsortium would reject the offer if the train fares were set at
\nRp 1,800 (78 U.S. cents), instead of Rp 5,000.<\/p>\n
At a city chapter of the Indonesian Chamber of Commerce
\nfunction Surjadi said the private firms in the Indonesia, Japan
\nand European Group (IJEG) felt they would have to wait too long
\nfor a profit if the period was more than 30 years at fares of Rp
\n1,800.<\/p>\n
The Governor had earlier refused to disclose proposed fares.
\nHe had said financial negotiations were delaying the project,
\ninitially to begin in June. Financial negotiations would affect
\nthe fares, he said.<\/p>\n
\"We want affordable fares for the public,\" he said Monday.<\/p>\n
Antara also quoted Surjadi as saying the city's offer to
\nextend the concession period was coupled with a proposal to
\nsubsidize the subway's operation costs.<\/p>\n
\"The administration is prepared to subsidize the subway's
\noperation just like Paris, London, Tokyo, and Seoul subsidize
\ntheir subways,\" Surjadi said.<\/p>\n
The cost of the 14.5-kilometer subway from Blok M, South
\nJakarta to downtown Kota is estimated at US$2.2 billion.<\/p>\n
\"The city administration wants the subway fare to be
\naffordable to the public,\" he said.<\/p>\n
He did not say how the city would subsidize the project.
\nEarlier Surjadi announced that Rp 60 billion would be allotted
\nfrom the 1997\/1998 city budget to the subway project.<\/p>\n
Initial proposals said the city was to raise $25 million a
\nyear for five years as its equity in the project, and another $35
\nmillion a year for 25 years to pay back loans.<\/p>\n
The consortium's chairman, Aburizal Bakrie, said earlier that
\nthe consortium had agreed to provide 100 percent of the finance,
\n30 percent from consortium members and 70 percent from loans.<\/p>\n
The 17-station subway is expected to ease traffic congestion.<\/p>\n
The city and the consortium, which includes local companies PT
\nBakrie Investindo, PT Pembangunan Jaya, Lippo Group, PT Bukaka
\nCorporindo and PT Steady Safe, and firms from France, Canada,
\nJapan, the United States, Germany, and Australia, signed a
\nmemorandum of understanding in August 1995.<\/p>\n
One of Soeharto's sons, Bambang Trihatmodjo, joined the
\nconsortium last July. (ste)<\/p>",
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