$3b bridge project starts in 1998
$3b bridge project starts in 1998
KUALA LUMPUR (Reuters): Malaysia, Thailand and Indonesia are to start work early next year on a 10 billion ringgit (US$3.0 billion) bridge project linking the three nations, Bernama news agency reported on Friday.
The announcement came after both Malaysia and Indonesia over the past two months announced that major infrastructure projects would be deferred due to the region's financial upheaval.
Bernama quoted the project's officials as saying design and construction of the 200-km (125-mile) long bridge will come from a private four-member consortium representing the three countries, and Japan.
The officials and businessmen were attending the Indonesia- Malaysia-Thailand Growth Triangle (IMT-GT) group meeting in north Malaysia's Perak state on Friday.
The Malaysian company will be East West Bridge Corp Berhad, a member of the Tiara Etika Group. Thailand will be represented by Sri Uthong Company Ltd, Indonesia by the Latief Group and Japan by Chiyoda Corp, Bernama said.
The bridge is intended to be a road and rail link, as well as oil and gas pipeline, between Malaysia's northern Penang state and Songkhla in southern Thailand.
The idea was mooted in 1994 by the IMT-GT.
Banyat Jansena, Songkhla's provincial governor at the meeting said, the project "held the promise of opening up border regions not only to transport but also to trade and tourism".
Officials said the project would serve all three nations. This would mean a separate 95-km (60-mile) bridge between peninsular Malaysia and Indonesia's province of Sumatra would be built to complete the link.
Indonesia's President Soeharto first approved the bridge project, which would be the world's longest, in August.
But the plan was postponed in mid-September under deep, wide- ranging spending cuts to help cope with currency and stock market turmoil.
Government spending on major infrastructure projects has been blamed for ballooning current account deficits that have driven foreign investors from regional markets.