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.