Consortium to build Batam port

Consortium to build Batam port

JAKARTA (JP): The Batam Industrial Development Agency (BIDA) has agreed to give exclusive rights to a consortium of Indonesian, Singapore and Malaysian companies for the establishment of a container port in Batam at about US$1 billion.

BIDA's deputy chairman, Gunawan Hadisusilo, was quoted yesterday by Bisnis Indonesia as saying that the consortium will include YTL Sdn. Bhd. of Malaysia, Kelang Container Terminal of Singapore and Timsco, an Indonesian company owned by Timmy Habibie.

Gunawan said that the consortium, based on a memorandum of understanding signed on March 31, is required to propose the technical details of the project within six months.

"If the consortium fails to present the technical details by Oct. 1, its exclusive right will be revoked," he said.

He explained that the technical details will cover the planned facilities, financial and investment planning, and the role of each of the consortium's members.

Based on the technical details, the consortium and BIDA, which is chaired by State Minister for Research and Technology B.J. Habibie, will negotiate for a contract on the port's construction.

"The consortium pledged that the first stage of the project will be completed within 30 months after the signing of the contract of its establishment," he said, adding that consortium plans to invest 500 million Malaysian ringgit in the first stage.(32)