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)