Subway project's new proposal submitted<\/p>\n
JAKARTA (JP): The consortium wanting to build the long-awaited
\nsubway project has submitted a new financial proposal after the
\nmunicipality turned down its previous one in March.<\/p>\n
Deputy Governor of Economic and Development Affairs Tb.M. Rais
\ntold The Jakarta Post yesterday that the submission of the new
\nproposal was aimed at helping solve the project's financial
\nconstraints, long-accepted as the main cause of the project's
\ndelay.<\/p>\n
\"The new proposal has been given to me, but no decision can be
\nmade at the moment because it has to be presented to the governor
\nfirst,\" Rais said.<\/p>\n
The consortium in charge of the project, IJEG, consists of
\nIndonesian, Japanese and European companies. An agreement to
\nbuild the project was signed by the consortium and the
\nmunicipality in August 1995.<\/p>\n
The Japanese companies are led by Itochu Corp., while
\nGermany's Ferrostaal AG heads the European firms.<\/p>\n
The Indonesian investors, led by businessman Aburizal Bakrie,
\nare PT Bakrie Investindo, a subsidiary of the Bakrie Group; PT
\nPembangunan Jaya; PT Lippo; PT Bukaka\/PT Kuda Perkasa; PT
\nSuthamthabie and PT Steady Safe.<\/p>\n
Rais declined to give further details of the proposed
\nfinancial scheme.<\/p>\n
On Tuesday afternoon, consortium member Bambang Yoga Sugama,
\nmet Rais to report to the municipality on the project's progress.
\nThe meeting was also attended by the head of the City's
\nDevelopment Planning Board, Budihardjo Soekmadi.<\/p>\n
Bambang Yoga officially joined the consortium after signing a
\nmemorandum of understanding in April along with Bambang
\nTrihatmodjo -- one of President Soeharto's sons, and businessman
\nDjoko Ramiadji.<\/p>\n
The consortium's chairman, Aburizal Bakrie, told the Post in
\nBangkok last month that the government had disagreed with some
\naspects of the previous financial proposal.<\/p>\n
He also attributed the delay of further talks on the project's
\nfinancial problems to the absence of a negotiating partner
\nrepresenting interdepartmental interests.<\/p>\n
Among the groups the partner would represent, he said, were
\nthe Ministry of Finance, the Ministry of Transportation and the
\nNational Development Planning Board (Bappenas).<\/p>\n
Rais said yesterday, however, \"the consortium can at the
\nmoment negotiate with the project's management unit,\" he said.<\/p>\n
The consortium and the city administration agreed in April to
\nextend the management unit's duty from handling the subway's
\nbasic design into covering its commercial aspects as well.<\/p>\n
The 14.5-kilometer project connecting Blok M in South Jakarta
\nand downtown Kota was initially scheduled to start in April and
\nwas then delayed until June.<\/p>\n
No one can say now when work will begin on the US$2.3 billion
\nproject.<\/p>\n
Bakrie denied that the consortium's proposed fares were the
\nreason behind the delay in the project.<\/p>\n
The municipality wanted to set the fares at Rp 1,800 (69 U.S.
\ncents), far below the consortium's proposal of Rp 5,000.<\/p>\n
The consortium has agreed to provide 100 percent of the
\nproject's funding: 70 percent from soft loans and 30 percent from
\nthe consortium members.<\/p>\n
The 17-station subway is an initial step in a long-term plan
\nto ease the city's chaotic traffic problems. (ste)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/subway-projects-new-proposal-submitted-1447893297",
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