$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.