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.