$2b port projects proposed

$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)