Subway project to start April if decree issued<\/p>\n
JAKARTA (JP): Construction of the Mass Rapid Transit (MRT)
\nproject would start in April although the presidential decree for
\nthe project was yet to be issued, TB. M. Rais, the vice governor
\nof Economic and Development Affairs said yesterday.<\/p>\n
Although the construction cannot start without the central
\ngovernment authorization, Rais expressed optimism that the
\nconstruction would start soon.<\/p>\n
\"We still have several months before April, so hopefully it
\nwill be issued before then,\" he said after a financial proposal
\nmeeting of a consortium involved in the project.<\/p>\n
Noted businessman Aburizal Bakrie heads the local companies in
\nthe Indonesian Japan European Group consortium.<\/p>\n
Yesterday the group told the city the project would cost Rp
\n4.5 trillion (US$1.89 billion), an increase on the initial
\nestimate of $1.5 billion.<\/p>\n
Rais said although the figures might pose financial risks to
\nthe city, the proposal would be studied.<\/p>\n
Rais' optimism was backed by Aburizal of PT Bakrie Investindo,
\nthe head of the consortium. Sounding optimistic, Aburizal said
\nthe construction could start as soon as the basic design was
\ncompleted.<\/p>\n
\"Insya Allah (if God permits) if the presidential decree is
\nissued within three months, construction will start soon,\" he
\nsaid, adding that the subway system could be finished by Aug. 17,
\n2001, Indonesia's Independence Day.<\/p>\n
The 14.5-kilometer underground subway is an initial step in
\nthe plan to ease traffic congestion. The 17-station subway will
\nconnect Blok M in South Jakarta and Kota in West Jakarta.<\/p>\n
The city and the consortium, which includes local companies
\nand firms from France, Canada, Japan, the United States, Germany,
\nand Australia, signed a memorandum of understanding (MOU) in
\nAugust 1995.<\/p>\n
Last July President Soeharto's son, Bambang Trihatmodjo,
\njoined the consortium. Today he is scheduled to sign an MOU at
\nCity Hall.<\/p>\n
The presidential decree for the project was initially expected
\nlast year. Both Rais and Bakrie could not explain the reason for
\nthe delay. The decree is also essential to enable the city to
\ndraw additional funds from the public purse.<\/p>\n
Rais said the city and the consortium would keep discussing
\nthe technical and financial aspects of the project while waiting
\nfor the decree.<\/p>\n
Under consideration is raising funds by requiring motorists
\nwho pass the subway route before and during construction, to pay
\ncongestion or peak-hour fees.<\/p>\n
Another alternative to the subway which has been proposed, is
\nan elevated railway system. Earlier Rais said the municipality
\nwas yet to receive detailed designs from the business group which
\nproposed it, the Citra Group, which is led by noted businesswoman
\nSiti Hardiyanti Rukmana. (02)<\/p>",
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