Foreigners to invest in port project

Foreigners to invest in port project

Multa Fidrus, The Jakarta Post, Tangerang

Three foreign investors have expressed interest in investing in
the construction of Bojonegara International Port (BIP) in Pulo
Ample district, Serang regency, Banten, the deputy governor said.

"The central government has confirmed that three foreign
investors from the United States, Denmark and France have stated
their readiness to invest in the project ... the first phase of
the long-term construction work will start later this year," Ratu
Atut Choisiah said in Tangerang regency on Friday.

She said Coordinating Minister for the Economy Aburizal Bakrie
had asked the Banten provincial administration, along with state
port operator PT Pelabuhan Indonesia (Pelindo), to complete the
master plan for BIP to show the new investors.

Ratu Atut, who recently attended a meeting with Bakrie's
office and officials from the Ministry of Transportation, the
National Planning Agency and Pelindo, asserted that the central
government would prioritize the construction of BIP over an
expansion of Tanjung Priok Port proposed by the Jakarta
administration.

A groundbreaking ceremony for the BIP project was officiated
by then president Megawati Soekarnoputri in 2003 and PT Pelindo
began to reclaim the area.

"Pelindo has spent Rp 45.2 billion for the initial work," Ratu
Atut said.

According to the project's timetable, the first phase of the
project will start by the end of this year and is expected to be
completed in 2010. This phase is expected to cost a total of Rp
1.9 trillion.

The five-year second phase of the project will cost Rp 2.65
trillion, while the final phase is expected to begin in 2016 and
last for nine years at a total cost of Rp 2.93 trillion.

"We hope the three investors will have joined the project by
December," Ratu Atut said.

She said that when Banten's international port began
operations, it would support direct international traffic from
large ships traveling to Indonesia, which would no longer need to
stop at the Singapore International Port.

To support the operation of the port, the Banten
administration and the central government have agreed to provide
support facilities such as a clean water supply from
a planned dam, toll road access from the Jakarta-Merak toll road
and a double-track railway.

"In a few months, the central government will open the bidding
for the construction a 14-kilometer toll road connecting the
Jakarta-Merak toll road with the new port," Ratu Atut said.