Consortium to build E. Java toll road

JAKARTA (JP): A consortium of companies led by businessman Setiawan Djody has been appointed by the government to construct a 29.5-kilometer toll road connecting Pandaan and Malang in East Java.

Djody said the consortium, PT Setdco Marga Nusantara -- which consists of state-owned PT Jasa Marga, PT Setdco Graha Nusantara, the army's Yamabri Dwibakti Utama foundation and the armed forces' Dharmala Kencana Sakti foundation -- will start the first phase of the project in May 1998.

The project will require a total investment of Rp 418 billion (US$181.74 million), of which 80 percent will come from Setdco Graha, 10 percent from Jasa Marga and 5 percent each from Yamabri Dwibakti and Dharmala Kencana.

In phase one of the project, a five-kilometer toll road will be constructed to connect Malang and Lawang.

Djody said the consortium had proposed a Rp 144 toll for each kilometer, or Rp 3,363 for the whole 29.5-kilometer stretch of road.

In comparison, the toll for East Java's Tanjung Perak to Gempol, 42 kilometer, toll road is Rp 3,000.

The ministry of public work's director for road supervision, Gandhi Harahap, said the Pandaan to Malang toll road is part of East Java's 90-kilometer "trans-Java express" project, connecting Surabaya's Tanjung Perak harbor and Malang.

The "trans-Java express" is divided into four sections according to the parties appointed to construct them. The sections are Tanjung Perak to Waru, Waru to Gempol, Gempol to Pandaan and Pandaan to Malang.

The first two sections, which were built by state-owned Jasa Marga, began operating in 1986 under management by the same company.

Harahap said the Gempol to Pandaan toll road would be built by a private investor, PT Marga Bumi Matra Raya.

"The government would like to build all the toll roads in Java which have been planned since 1974, but limited funds have forced us to involve the private sector through international bids," he was quoted by Antara as saying.

The project covers a total of 240 hectares. Much of the land is still to be acquired. (pwn)