Govt to allocate Rp 4.2t to repair roads

Govt to allocate Rp 4.2t to repair roads

The Jakarta Post
Jakarta

In an effort to help reduce congestion due to lack of road
capacity, the government will allocate some Rp 4.2 trillion
(US$453.32 million) to repair and extend the existing 34,000-
kilometers road network.

Ministry of Public Works director-general of regional
infrastructure Hendriyanto Notosoegondo said on Wednesday that 15
percent of roads connecting provincial cities were in bad
condition, causing disruptions in transportation of goods and
passengers.

Antara news agency reported that the allocated funds -- which
are separate from funds to maintain and expand toll roads --
would be taken from the state budget.

Elsewhere, Minister of Public Works Djoko Kirmanto said there
were currently 38 investors who had expressed interest in bidding
for six upcoming toll road projects.

The minister said that most of the tenderers were consortia of
local companies and investors from Malaysia, Hong Kong and South
Korea.

The six projects include: a toll road connecting Medan and
Binjai in North Sumatra (20.5 kilometers); an inner-city toll
road in Makassar, South Sulawesi (11 km); a toll road between
Cikarang in Bekasi regency and Tanjung Priok in North Jakarta (53
km); a toll road between Depok, south of Jakarta, and Jl.
Antasari in South Jakarta (18.2 km); the Cinere and Jagorawi
section in Bogor (14 km); and the Sumedang to Cileunyi route in
West Java (23.4 km).

The ministry also plans to grant concessions of at least 20
years duration to the successful tenderers, enabling them to gain
good returns on their investments.

In relation to the impact of recent rises in fuel prices upon
toll road operators, Djoko said there was no plan to raise toll
fees in the immediate future as the companies could absorb any
additional costs.

"At present, toll fees are still subject to government
approval. Until now, no toll road operator has proposed an
increase," he said, as quoted by Antara.