GEC Alsthom expects deal

GEC Alsthom expects deal

PARIS (Reuter): GEC Alsthom said yesterday it had signed an
agreement with Indonesian railways on building a city underground
rail network and that the agreement should produce a contract
worth about US$1 billion.

GEC Alsthom, a joint venture between French Alcatel Alsthom
and British General Electric Co Plc, said in a statement it and a
unit of Bimantara had signed the deal yesterday.

It said the first step envisaged was a feasibility study to
work out the details of the construction project for the East
Java city of Surabaya.

"GEC and Alsthom and the Bimantara group will create a
consortium to deal with the study, the construction and the
operation of two (rail) lines of which the first North-South one
will be 20 km long," said the statement.

"This project should lead to a contract in the region of $1
billion," said the statement.