Govt to announce tollway tender results in July

Govt to announce tollway tender results in July

JAKARTA (JP): The government expects to announce the results
of the tender of 19 tollway segments next month, Minister of
Public Works Minister Radinal Moochtar said yesterday.

Speaking after a meeting with President Soeharto at the
Merdeka Palace, the minister said that 86 bidders had submitted
proposals for the construction of the tollway segments in Java
and Sumatra, which have a total length of 770 kilometers.

But only about 49 of the bidders submitted proposals in
accordance with the tender requirements, Radinal added.

Companies bidding for the projects under a build, operate and
transfer arrangement are required to establish either joint
ventures or joint operations with PT Jasa Marga, the state-run
company assigned to manage all Indonesia's toll roads.

However, a business executive said that certain foreign
companies from Singapore, Malaysia, the Philippines and Taiwan
had submitted bids which did not include a local partner.

Maryadi Darmokusumo, president of Jasa Marga, said recently
that the entire value of the toll road projects was Rp 6.07
trillion.

Of the tendered toll roads, 18 will be located in Java --
where 60 percent of Indonesia's 193 million people live -- while
the other one will be in North Sumatra, linking Medan and Binjai.

Java roads

The 18 segments in Java include three roads connecting Sadang
in Cikampek with Palimanan in Cirebon, both in West Java, three
connecting Ciawi and Citatah in West Java and three connecting
Cirebon and Batang in West and Central Java.

There is to be an 80-km Semarang-Surakarta segment in Central
Java and a 209-km Surakarta-Mojokerto toll road linking Central
and East Java, which are divided into five segments.

Also planned are a 24-km Surabaya outer ring road, a 29.5-km
Pandaan-Malang free-way segment and a 40-km Pasuruan-Probolinggo
segment, all in East Java.

Of the 19 toll road segments, one is expected to start
operation by 2000, three by 2001 and the others by 2004.

According to a source, the three most popular segments among
bidders were those connecting Pandaan and Malang in East Java (33
bidders); Sadang and Subang in West Java (26 bidders); and
Simpang Susun Waru and Tanjung Perak in East Java (25 bidders).

The segments which were less popular, attracting only four
bidders each, were those connecting Surakarta in Central Java and
Mantingan in East Java; Mantingan and Ngawi in East Java as well
as Ngawi and Caruban, also in East Java.

Under Government Regulation No. 8/1990, private investors are
now allowed to enter the toll road business by establishing a
joint venture with Jasa Marga. Indonesia now has some 475
kilometers of toll roads, built both by Jasa Marga and by private
companies, which include the publicly-listed PT Citra Marga
Nusaphala Persada and the Humpuss Group. (31)