Sutiyoso wants in cheap for big transportation projects<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Amid pressure for better transportation and infrastructure in the
\ncapital, Governor Sutiyoso suggested on Wednesday that the
\nestimated expense of the ongoing monorail project and the planned
\nmass rapid transit project were too high.<\/p>\n
He said it was necessary to reduce the cost of both projects.<\/p>\n
\"I'm not sure about the estimated total cost ... but the cost
\nshould be lower, there is no floor price to it,\" he said after
\nmeeting with Vice President Jusuf Kalla, Minister of
\nTransportation Hatta Radjasa and State Minister of State
\nEnterprises Sugiharto.<\/p>\n
The meeting was held to discuss Jakarta's infrastructure
\nbudget, including funds for the monorail, the mass rapid transit
\n(MRT) and the Jakarta New Port projects.<\/p>\n
The monorail, construction of which began last year and is
\nexpected to be completed in 2007, is valued at US$650 million.<\/p>\n
It is being built by a consortium of investors grouped in PT
\nJakarta Monorail.<\/p>\n
Sutiyoso argued that the Japanese technology used in the
\nconstruction had inflated the cost.<\/p>\n
\"We'll review whether we can apply Chinese technology ...
\ncheaper is better so we can resume construction.\"<\/p>\n
If the administration decides to terminate the agreement, it
\nwill be the second such failure in the last 13 months. Early last
\nyear, it scrapped an agreement with Malaysian firm MTrans
\nHolding.<\/p>\n
The project has been stalled since a groundbreaking ceremony
\nlast year that was officiated by then president Megawati
\nSoekarnoputri.<\/p>\n
The city administration failed to the acquire land in the
\ninitial planned path of the project, causing the developer to
\nchange the blueprint a number of times.<\/p>\n
When the Sutiyoso administration decided to expedite the
\ndeadline to 2006, the consortium had difficulty in securing soft
\nloans from foreign investors Hitachi and the Japan Bank for
\nInternational Cooperation.<\/p>\n
Instead the developer offered the government an equity sharing
\nscheme, which required the latter to provide $60 million, or 30
\npercent of the initial capital outlay.<\/p>\n
\"The central government, the Jakarta administration, state
\nenterprises and private investors will be invited to participate
\nin the scheme,\" Sutiyoso remarked, expressing hope that the
\nfinancial matter could be settled this year.<\/p>\n
He also revealed that the central government would soon
\ncomplete all paperwork on the MRT, the construction of which is
\nexpected to start early next year.<\/p>\n
Sutiyoso said that the government had offered soft loans from
\nJapan with an interest of 1 percent per year.<\/p>\n
\"Still, the value of the project is considered high at Rp 500
\nbillion for each kilometer of MRT track,\" he complained.<\/p>\n
The MRT will stretch from Lebak Bulus in South Jakarta to
\nDukuh Atas in Central Jakarta, with underground stations at Ratu
\nPlaza in Senayan and Dukuh Atas, a distance of approximately 3.5
\nkilometers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sutiyoso-wants-in-cheap-for-big-transportation-projects-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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