Citra Lamtorogung to build elevated railway project
Citra Lamtorogung to build elevated railway project
JAKARTA (JP): PT Citra Lamtorogung Persada will continue with
its project to build an elevated railway linking Cinere, South
Jakarta, with downtown Kota, West Jakarta, despite the
government's plan to construct a subway between Kota and Blok M,
which is also in South Jakarta.
Minister of Transportation Haryanto Dhanutirto said yesterday
that the construction of the elevated railway is expected to
start as soon as possible, likely by the end of this year.
Speaking to reporters after a hearing with members of the
House of Representatives, Haryanto said that construction of the
elevated railway project will be much cheaper than the subway.
"Moreover, the land areas for each pole under the elevated
railway system have already been cleared," he told the Antara
news agency. However, the minister said he did not know how much
would be invested in the project.
The railway will be built by PT Citra Lamtorogung in
cooperation with privately-owned PT Steady Safe and link Cinere,
Lebak Bulus, Kebayoran Lama, Tanah Abang and Kota, he said.
At a hearing with the House Commission V, which is in charge
of public works and transportation, the minister said that in
preparation for the construction of the 10.3-kilometer subway
system the government has formed a project management unit to
prepare its basic design.
"The basic design is needed for tender purposes for the
companies and consortia interested in building the subway
project," he said.
Deputy Governor for Economic and Development Affairs Tb. Rais
said recently that subway construction is expected to begin in
1997, when the basic design is slated to be finished.
Rais said that the management unit, in cooperation with the
National Development Planning Board (Bappenas) and the Jakarta
administration, is currently preparing the design at a cost of
US$2 million.
He said the government still has not named the developers who
will build Indonesia's first subway.
Consortia
Several consortia from France, Canada, Japan, the United
States, Germany and Australia have reportedly expressed interest
in participating in the construction of the project.
Governor Surjadi Soedirdja was quoted by Antara as saying that
the cost to build the subway may reach approximately US$400
million to $500 million, while another source estimates it at
closer to $1.092 billion. Out of the total project cost, 30
percent will come as equity and 70 percent in overseas loans.
Thirty percent of the equity stake will be in the form of
government funds while the remaining 70 percent will come from
the private sector, the source said.
Governor Surjadi said that domestic and foreign participation
is welcomed because the government is short of the funds
necessary to build the project.
"The government will offer a number of incentives to the
private sector companies joining the project, including the right
to manage shopping centers at any stations built along the subway
project," he said.
The governor acknowledged that the project is very expensive
but considered it to be the most favorable alternative because
while it is being constructed, the work will not affect the
city's activities, particularly the city's busy traffic. (hhr)