Bambang joins the subway project
Bambang joins the subway project
JAKARTA (JP): Bambang Trihatmodjo officially joined the
Indonesian group of investors in the long-awaited subway project
consortium when he signed a deal yesterday.
The signing ceremony at Governor Surjadi Soedirdja's City Hall
office was closed to the press. The City Hall information office
refused to provide pictures of the signing.
Bambang, one of President Soeharto's sons, and City Hall
officials refused to comment.
"I just signed the MOU," Bambang said after the ceremony.
The Bimantara Group boss also refused say which of his
companies was joining the huge project.
Surjadi also refused to answer questions on the 14.5 kilometer
subway project. "I'm getting bored with talking about the
project."
The subway to connect Blok M in South Jakarta and downtown
Kota, will be built by a consortium of Indonesian, Japanese and
European companies.
An agreement was signed by the Indonesian Japan European Group
(IJEG) consortium and the city administration in August 1995.
The Japanese companies are led by Itochu Corp. The European
firms are led by German Ferrostaal AG.
The Indonesian investors, led by businessman Aburizal Bakrie,
are PT Bakrie Investindo, a subsidiary of the Bakrie Group; PT
Pembangunan Jaya; PT Lippo; PT Bukaka/PT Kuda Perkasa; PT
Suthamthabie and PT Steady Safe.
Bakrie had earlier said that IJEG had long agreed to provide
100 percent of the finance for the US$1.5 billion Mass Rapid
Transit project. The consortium agreed to provide 30 percent on
their own and 70 percent from soft bank loans.
Bambang said he was interested in joining the project last
July, and sent a proposal to the city.
When asked why the agreement was signed so long after the
proposal was sent, Bambang said "the time was not set by me".
When?
Bakrie had earlier said the project would start in June. He
has not set a new start date.
The 17-station subway was originally to be completed before
Aug. 17, 2001, Indonesia's Independence Day.
No one could say yesterday when the project would begin.
Bambang's proposal was accepted after PT Citra Lamtoro Gung
Persada, owned by his elder sister Siti Hardiyati Rukmana,
refused to join the project.
The head of the Citra Group public relations department,
Fariza Y. Irawady, said they were not interested because they
wanted to concentrate on the three-level transit system
connecting Bintaro in South Jakarta to Kota in West Jakarta.
A joint venture, PT Citramoda Marga Kencana Persada, was set
up Monday to start the Rp 6.05 trillion (US$2.49 billion) three-
level transit system construction. This signing ceremony was also
held at City Hall.
Construction will commence in December and the transit system
will start operating in 2001. It will comprise a toll road, a
light rail transit and artery roads.
The company will build 23.65 kilometers of toll road and 22
kilometers of light rail transit. (ste)