Indonesian Political, Business & Finance News

Bus station development stalled

| Source: JP

Bus station development stalled

Multa Fidrus, The Jakarta Post, Tangerang

The construction of Poris Plawad integrated bus terminal in the
Batu Ceper district of Tangerang municipality has not yet begun
due to funding problems, a municipality official said.

Harry Mulya Zein, the deputy chief of Tangerang's development
control agency, said on Wednesday that they had to delay the
project because the central government had not yet approved the
budget plan for the construction.

The construction was planned to begin on April 1, 2002 and
would be completed on Feb. 26, 2003.

He said the Asian Development Bank (ADB) had promised early in
1998 to provide Rp 13 billion (US$1.39 million), the central
government Rp 11 billion and the Tangerang municipal
administration Rp 1 billion for the development of the bus
terminal, which was estimated to cost between Rp 24 and Rp 25
billion.

However, due to the fact that the central government -- or
more specifically the ministry of finance -- had not yet approved
the assistance from the ADB, nor had it handed over the promised
Rp 11 billion yet, so the project remains in limbo.

"To this point, we have not been given any indication as to
when the central government will hand over the money and give its
approval for the ADB funds to be disbursed. ADB will only
disburse funds when the ministry of finance issues its approval
of the loan agreement," Harry told The Jakarta Post.

The Poris Plawad integrated bus terminal, if completed, will
become the only bus terminal in Tangerang to serve intercity and
interprovince transportation. Tangerang, despite its status as a
satellite city in Greater Jakarta, has no such bus terminal,
following the recent closure of Cikokol bus station which will be
transformed into an urban park.

The Poris Plawad terminal was designed with eight entrances to
accommodate 170 intercity buses, 100 city buses and 160 public
minivans.

Harry added that their lack of funding had also caused them to
postpone the clearance of land for the bus terminal, which is set
to be developed on a seven-hectare site.

Charles Andrews, a consultant and a Senior Urban Management
Specialist with ADB's Social Sector Department in Southeast Asia,
expressed his concern over the postponement of the terminal
construction.

But he understood the reasons after several officials from the
municipality explained the problems related to the finance
ministry.

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