'Developers must keep projects'

BANDUNG, West Java (JP): Developers of railway networks in Indonesia will probably be required to retain ownership, Minister of Research and Technology B.J. Habibie indicated yesterday.

Habibie said he would be opposed to transport developments that involved the transfer of ownership and operation to the government.

Developers under the build-operate-transfer scheme might demand compensation for various reasons at the time of transfer, he said.

"The alternative is the BOO system. The investors may build, operate and own it. But they have to use our infrastructure, such as electricity. And we get payment from it," he said.

The operators would also pay taxes to the government and create jobs for many people, he said.

Habibie outlined his preferred approach to transport development after attending the presentation of plans for the light railway transit network by three French companies, Cegelec, GEC Alsthom and Systra DDA Cegelec.

Present were Minister of Transportation Haryanto Dhanutirto and French Minister of Public Works, Transport, Housing and Tourism Bernard Pons, who accompanied the French businessmen.

Haryanto and Pons signed a memorandum of understanding (MOU) on the development of railway network in Medan, North Sumatra. Under the MOU, GEC Alsthom would conduct a feasibility study on the project.

Both had signed the memoranda of understanding on the development of the Surabaya and Bandung railway projects in Paris last year when Haryanto visited France last year.

Cegelec has proposed to develop a 22-kilometer railway network across Bandung from 1998 to 2000. It has said it would finance the project privately but has not said how much it would cost.

GEC Alsthom has offered to build a network across Surabaya from Tanjung Perak port to the Purbaya bus terminal. The project would cost US$870 million and be built between 1998 to 2001.

Systra DAA Cegelec also proposed building a 682-kilometer double track express railway connecting Manggarai in Jakarta and Pasar Turi in Surabaya. The train would make the trip in two hours and 20 minutes.

The project needs a $7.8 billion investment. Systra will get the financing from various sources, including its own equity, public contribution, export credit and World Bank loans.

Haryanto refused to comment on those proposals.

"Every proposal will be taken to the president. He will make the decision," he said. (ahy/jsk)