Govt experts more from summit II

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.