Subway will start in June<\/p>\n
JAKARTA (JP): Construction of the long-awaited subway will
\nstart on June 1 with or without a presidential decree, the
\nchairman of the project's consortium has promised.<\/p>\n
Aburizal Bakrie, who heads the Indonesian Japanese European
\nGroup consortium, said yesterday the government had given the
\ngreen light to the investors to begin the US$2.2 billion project.<\/p>\n
\"God willing, we can start development about three months from
\nnow, on June 1,\" Aburizal, director of PT Bakrie Investindo said
\nafter a meeting to discuss the project's financial proposal at
\nthe Agency for Technology Assessment and Application.<\/p>\n
Among those present at yesterday's meeting were agency
\nchairman\/State Minister of Research and Technology B.J. Habibie,
\nwho heads the project's steering committee, Minister of
\nTransportation Haryanto Dhanutirto, Minister of Public Works
\nRadinal Moochtar, Jakarta Governor Surjadi Soedirdja and Deputy
\nGovernor for Economic and Development Affairs Tb. M. Rais.<\/p>\n
Only Aburizal was willing to comment on the outcome of the
\nmeeting. Habibie was seen hugging a member of the consortium
\nafter the meeting.<\/p>\n
Aburizal did not say where the construction of the 14.5-
\nkilometer subway would begin. The planned route is from Blok M in
\nSouth Jakarta to downtown Kota.<\/p>\n
When asked about the necessity of a presidential decree as a
\nprerequisite to begin the mass rapid transportation project,
\nAburizal said this would be up to the government.<\/p>\n
\"If it's necessary we will follow (the requirement). If not,
\nwe can go ahead,\" Aburizal said.<\/p>\n
So far both the municipality and the consortium have expressed
\nthe need for a presidential decree.<\/p>\n
Rais had said the decree was essential to determine the city's
\nrole in any public transportation project. This was regardless of
\nwhether a subway or the alternative proposal, a three-tiered road
\nand rail link was built, he said.<\/p>\n
This latter proposal was forwarded by PT Citra Lamtoro Gung
\nPersada owned by Siti Hediyanti Rukmana, President Soeharto's
\neldest daughter.<\/p>\n
The presidential decree was also considered essential to
\nenable the city to draw additional funds from the public purse.<\/p>\n
But Surjadi and Rais said later they would wait for the new
\nlaw on fees and taxes.<\/p>\n
According to initial proposals the city was to raise $25
\nmillion per year for five years as its equity in the project, and
\nanother $35 million a year for 25 years to pay back loans.<\/p>\n
Surjadi has also said the municipality would find it difficult
\nto raise the funds as it is not allowed to secure loans.<\/p>\n
Aburizal said the government gave the green light to the
\nconsortium under several conditions, including that the
\ngovernment would not provide any loan guarantees.<\/p>\n
\"We are allowed to seek loans for the project from private
\ninvestors but without the government's guarantee,\" Aburizal said.<\/p>\n
He added the subway's project management unit had been
\nassigned to discuss details of the development with the
\nconsortium.<\/p>\n
\"We expect a special body will be formed under the steering
\ncommittee to supervise the development phase,\" Aburizal said.<\/p>\n
He denied reports quoting a public works ministry official and
\na legislator who said the project, initially scheduled to begin
\nin April, was delayed because of differences over the eventual
\nfares.<\/p>\n
Despite the city's difficulties in raising funds, he said
\ninvestment was not a problem either.<\/p>\n
\"There're no technical or investment problems concerning the
\nsubway project ... we're only waiting for the (government's)
\ngreen light,\" Aburizal said.<\/p>\n
He said the consortium had long agreed to provide 100 percent
\nof the funds to finance the project.<\/p>\n
\"We have agreed to provide 30 percent of the project's funds
\non our own and the remaining 70 percent from loans,\" Aburizal
\nsaid, adding these would be soft loans.<\/p>\n
He said the consortium would form a company to handle the
\nproject's financial matters, including repaying the loan.<\/p>\n
Several countries have expressed their willingness to give
\nsoft loans to the consortium. \"It's still unofficial though,\"
\nAburizal said.<\/p>\n
The subway project is expected to be completed by Aug. 17,
\n2001, Indonesia's Independence Day.<\/p>\n
The 17-station subway is an initial step in the long-term plan
\nto 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
Last July one of Soeharto's sons, Bambang Trihatmodjo, joined
\nthe consortium. (ste)<\/p>",
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"sponsor": "Okusi Associates",
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