$2b port projects proposed

JAKARTA (JP): The state-owned port management firm PT Pelabuhan Indonesia II plans to propose a number of projects worth Rp 4.4 trillion (US$2.01 billion) and involving private companies to the Ministry of Transportation.

The company's president, Amir Harbani, told Commission V of the House of Representatives here yesterday that the government's introduction of a new regulation allowing foreign investment in infrastructure facilities has motivated several private firms to submit partnership project proposals.

"Private companies are usually interested in businesses offering quick return of investment, including container handling terminals, general cargo terminals, reclamation, interval shipping and water supply," he said.

Fifty percent of the funds for the cooperation projects is expected from participating private firms, 20 percent from PT Pelabuhan Indonesia II, which manages commercial ports in West Java, Jakarta, West Kalimantan and the southern part of Sumatra, and 30 percent from bank loans.

Harbani said the projects include the reclamation work in Ancol Timur, Jakarta, for the expansion of Tanjung Priok Seaport.

"The reclamation project, worth Rp 2.23 trillion, is a long term one proposed by PT Manggala Krida Yuda. The project will cover a 500-hectare plot," he said.

Completion of the project is expected within the seventh Five Year Development Plan (Repelita VII) period, which will begin in 1999.

He said the other projects include the construction of a $500 million commercial port in Bojanegara, Serang, West Java, a new $38.5 million passenger terminal at Tanjung Priok, and a Rp 16 billion water supply project, as well as the establishment of an electronic data interchange program.

Harbani said the construction of Bojanegara port is very important. It is expected to take over 20 percent to 30 percent of container and cargo handling from Tanjung Priok.

The first phase of the port project will cover 500 hectares of land.

In a hearing with the commission on Tuesday, Minister of Transportation Haryanto Dhanutirto said that his office has received hundreds of proposals for infrastructure projects in transportation worth Rp 11 trillion. (icn)