Govt experts more from summit II
Mustaqim, The Jakarta Post, Jakarta
After a fairly dismal result from the last Infrastructure Summit 11 months ago, the government is upbeat about its second edition of the summit -- scheduled for February -- due to the more comprehensive nature of the projects on offer.
"Unlike the past summit, which was all about getting investors to run the projects, the Infrastructure Summit 2006 will mostly focus on all of infrastructure sector players.
"It will not only comprise investors, but also suppliers, manufacturers, contractors, consultants, lawyers, accountants, etc. to raise the funds needed during the five-year projects," Senior advisor to Coordinating Minister for the Economy Bambang Susantono, stated on Tuesday.
Bambang was speaking at a workshop on infrastructure.
"The projects on offer at the next summit will also be more comprehensive, competitive, accountable and transparent. They will be more attractive," said Bambang.
"The government expects more industry players to collaborate due to the new format of the Infrastructure Summit II."
The hype surrounding the first summit turned out to just that as little concrete work came out of it. Few investors were interested in even taking part in the tender processes. Of the total of 91 projects worth US$22.5 billion, only six even managed to get to a bidding process, but only one project is currently being carried out.
The figures were based on data from a government-assigned committee for infrastructure projects (KKPPI).
Projects that failed to attract bids at the first summit will for sure be put up again, Bambang said.
The government has said that the country would need about US$145 billion over the next five years to develop its infrastructure to a point that is sufficient for current needs.
The government will contribute about 17 percent of the investment needed.
The other 21 percent will be covered by local financial institutions, including banks, insurance companies, mutual funds and pension funds, with the remaining 62 percent expected to be provided by foreign donors, including the World Bank and strategic partners from overseas.
The figures exclude the costs of rehabilitation of damaged infrastructure, and also do not include expenses incurred during operation or maintenance of existing infrastructure assets.