Govt opens tender for 6 toll road projects totalling Rp 3 trillion
Govt opens tender for 6 toll road projects totalling Rp 3 trillion
Rendi A. Witular, The Jakarta Post/Jakarta
In the wake of the recent Infrastructure Summit, the government
will begin the tender process for six toll road projects worth
more than Rp 3 trillion (US$333 million) with the bidding process
expected to be completed next month.
"Currently, the tender process is in the pre-qualification
level with some 147 investors participating. The investors will
soon submit their offer price for the projects," Minister of
Public Works Djoko Kirmanto told The Jakarta Post recently.
According to Djoko, the investors -- mostly local business
groups -- will bid on roads with a total length of more than 130
kilometers.
The projects comprise the roads connecting Medan and Binjai in
North Sumatra; one through Makassar; another connecting Cikarang
and Tanjung Priok in Greater Jakarta; a toll road between Depok
and Jl. Antasari in South Jakarta; the Cinere and Jagorawi route
in Bogor; and the Sumedang to Cileunyi route in West Java.
The six are part of the government's plan to build a total of
1,300 kilometers of toll roads over the next five years,
eventually providing a direct linking between Merak, Banten on
the extreme western tip of Java to Banyuwangi, East Java on the
extreme eastern tip of Java.
Toll road projects are one of the government's top priorities
in developing the country's infrastructure. During the summit,
which ended on Jan. 18, the government put on offer 91
infrastructure projects worth US$22.5 billion to domestic and
international investors. The budget is part of the government's
total need of around $150 billion for the development of various
infrastructure facilities -- including the construction of a
total of 114,800 kilometers of roads worth Rp 214.2 trillion
(US$23.4 billion).
The massive infrastructure projects are part of the
government's effort to prevent congestion in distribution, which
significantly increases the cost of doing business here.
The lack of highway capacity is apparent with daily congestion
on most key roads that link one province to another in Java, the
country's main economic center.
According to the Ministry of Public Works, since 1978, the
country has only managed to build 606 kilometers of new highway,
or an average of 24 kilometers per year, on the country's total
land of about 1.9 million square-kilometers.
In order for the country to reach 6 to 8 percent Gross
Domestic Product (GDP) growth, the government is estimated to
need approximately US$30 billion annually for infrastructure
investments.
The government is committed to spending approximately 20
percent of the state budget on infrastructure, but needs the
international and domestic private sectors to pay for the bulk of
it.