Govt close to choosing firms to build subway

Govt close to choosing firms to build subway

JAKARTA (JP): The investment value of the Jakarta subway
project, which will start construction early next year, is
currently being calculated by the government, Governor Suryadi
Soedirdja said yesterday.

The next step is to determine which consortium is qualified to
implement the project, Suryadi, chairman of the Project
Management Unit, told journalists.

"Until details of the costs are finalized, the unit has no
idea which company will implement the project," he said. He
insisted that the costs should be calculated carefully because it
will also determine subway ticket prices.

He said that the unit should consider the consumers because
the subway is built for them and the facilities will be of little
use if the fare is too expensive for most users.

He said that the fare will be determined based on various
factors, such as the city's income levels.

"Up to now the unit has not decided, or appointed, who will
construct the subway," Suryadi said, adding that he is optimistic
the research can be finished by the end of this year and the
project started early next year.

The unit is responsible for making the basic design of the
subway, as well as reviewing the validity and reliability of the
proposal, including the financial aspect.

The unit consists of experts from the Ministry of Public
Works, Ministry of Transportation, City Administration and the
Agency for the Assessment and Application of Technology.

In February President Soeharto approved a proposal to build
the subway, linking Blok M and Kota, as an effort to ease the
increasingly chaotic traffic in the capital.

The proposal estimates that the 14 kilometer subway will cost
about US$1.3 billion and the government has decided to form a
consortium of state-owned companies, city-owned companies, as
well as foreign and local private companies to build the system.

The proposal also predicts that the subway system can carry up
to 40,000 passengers during peak hours and about 290,000
passengers per day, in the year of 2002. The proposed fare is Rp
1,800 per passenger.

There will be about 15 stations, with the distance between
each being about one kilometer. They will be built in Kota,
Glodok, Mangga Besar, Sawah Besar, Harmoni, Monumen Nasional
(Monas), KH Wahid Hasyim, Hotel Indonesia, Dukuh Atas, Setiabudi,
Karet, Senayan, Senopati, Blok M and Panglima Polim.

Governor Suryadi is optimistic that the project can commence
as scheduled and that there are "many" companies interested in
implementing it.

There are, up to now, about six multinational companies, from
France, Canada, Japan, the United States, Germany and Australia,
who have expressed interest to participate in the project. (yns)