E. Java govt may ax Tommy's projects
E. Java govt may ax Tommy's projects
JAKARTA (JP): The East Java provincial administration looks
set to terminate the contract with a company partly owned by a
son of former president Soeharto to develop a drinking water
plant in Umbulan due its failure to complete the project.
The head of the provincial economic affairs office, Tari
Sugiono, said in Surabaya yesterday that PT Mandala Citra Umbulan
should have realized the project this month under the terms of
the contract with the East Java administration signed in 1994.
But, thus far there were no signs that the company was going
to finish the project by the deadline.
"If the company does not realize the project this month, we
shall terminate the contract. There are still a lot of bona fide
investors who are interested in the project," Tari was quoted by
Antara as saying.
Mandala Citra is jointly owned by the Humpuss Group controlled
by Soeharto's youngest son Hutomo Mandala Putra, also known as
Tommy, and the Ciputra group, controlled by property tycoon
Ciputra.
Under the contract, the consortium was to develop the US$250
million project under a 25-year build, operate and transfer deal.
The water plant will take water from the Umbulan water spring,
along the slopes of Mount Bromo, 55 kilometers south of the
provincial capital of Surabaya.
It is designed to carry 4,200 liters of water per second,
2,400 liters of which will be distributed to Surabaya, 1,350
liters to Sidoarjo regency, 250 liters to Pasuruan regency and
200 liters to Gresik regency.
Mandala Citra won the contract four years ago in bidding which
reportedly also involved Tommy's brother Bambang Trihatmodjo,
sister Siti Hardijanti Rukmana and a number of foreign investors.
Tari also said the East Java administration would also
terminate the contract with PT Sarana Sirkuitindo Utama, owned by
Tommy and fellow auto racer Tinton Suprapto, to install
computerized facilities for vehicle roadworthiness tests in the
province, due to its failure to realize the project on schedule.
Tari said that under the contract signed four years ago the
company should have finished installing the facilities last week
but thus far the firm had done nothing.
"Formerly, we could do nothing but make complaints. Now in the
era of reform, no one is afraid (of Tommy)," he said. (jsk)