Govt to review 50 toll road projects
Govt to review 50 toll road projects
JAKARTA (JP): State-owned toll road operator PT Jasa Marga
announced on Monday it would review 50 toll road projects to
determine whether private firms had obtained contracts due to
preferential treatment.
Jasa Marga president Maryadi Darmokumoro said 10 of the toll
roads were already operational, 13 were currently either under
construction or in the process of acquiring land, while the
remaining 27 projects were still in the planning stage.
"We have indications that many of the contracts were obtained
through corrupt, collusive and nepotistic practices, though this
hasn't been proven, because most of the deals were made through
direct appointment instead of fair bidding," Maryadi said.
The company plans to review the deals for potential contingent
liabilities, including clauses that require Jasa Marga to take
over debts from its partners or provide bridging finances to
them.
Jasa Marga will also look for indications of markups and
unfair distribution of revenue in projects with large
investments.
The review's results, he said, could prompt the company to
renegotiate agreements with some of its partners.
But Maryadi assured that the company would not unilaterally
pull out of any contracts, adding that any cancellations would be
done according to existing rules.
Jasa Marga will also take into consideration any possible
effects of the cancellations on the investment climate for toll
roads and investment in general.
Projects not yet underway or in their planning stage will be
offered for tender again by the company, he said.
On Sept. 2, the government reviewed and annulled several
business deals signed by its agencies and enterprises with the
family and cronies of former president Soeharto.
Maryadi said all of the 27 projects currently in the planning
stage had been obtained through political connections.
He refused to name the companies which had allegedly used
political ties to score the deals, but many of the projects
listed were linked to Soeharto's family.
At least five of the projects are known to be controlled by
Soeharto's eldest daughter, Siti "Tutut" Hardijanti Rukmana.
Publicly listed PT Citra Marga Nusaphala Persada, headed by
Tutut, holds a 30-year construction and operation contract over
the Cawang-Tanjung Priok toll road through 2019 and over the
Tanjung Priok-Jembatan Tiga toll road through 2025. Both are
currently in operation.
Other toll road projects linked to Tutut -- the Pondok Aren-
Serpong project in Tangerang, West Java; Jakarta's triple-tiered
project; the Solo-Yogyakarta road in Central Java; and the Waru
(Aloha) Wonokromo-Tanjung Perak toll road in Surabaya, East Java
-- will also be looked at in the review.
The projects, except for the Pondok Aren-Serpong road which is
under construction, are currently in their planning phases.
A toll bridge planned for the Sunda Strait, a project linked
to Soeharto's young grandson Ari Sigit, is also among the 50
projects to be reviewed. Though it has yet to begin, the project
has already gained approval from the Ministry of Public Works.
Other projects already in operation to be reviewed are the
Tangerang-Merak toll road in West Java, the Surabaya-Gresik road
in East Java, the Ujungpandang toll roads in South Sulawesi and
the Semarang section C toll road in Central Java.
Projects to be reviewed that are still under construction are
the Jakarta outer ring roads, the Surabaya-Mojokerto project in
East Java and the Semarang-Demak road in Central Java.
Projects yet to begin that will be reviewed include a
Surabaya-Madura toll bridge, a Bali strait toll bridge and a
Kapuk-Teluk Naga-Tangerang toll road. (das)