Habibie proposes another megaproject

Habibie proposes another megaproject

JAKARTA (JP): State Minister of Research and Technology B.J.
Habibie, often called Indonesia's technology tsar, plans a
megaproject that would make Irian Jaya an industrial estate.

Habibie presented his idea to build a giant multi-purpose
reservoir near Mamberano river to a two-day seminar that brought
together academics and potential investors, both local and
foreign.

The Mamberano reservoir would mainly be used to generate power
and irrigate agricultural land to fulfill Habibie's vision to
turn Irian Jaya into a "food basket".

The reservoir will irrigate land suitable for agribusiness and
support mining activities in the area. He said that companies
which intend to use the hydropower plant would pay for the
reservoir's financing plan.

According to DPA, the project would cost US$20 billion.

Habibie said the area would benefit from an integrated
economic project which would support Indonesia as a center of
sustainable economic growth, fair income distribution and
employment opportunities.

Habibie, also head of the government board in charge of
planning eastern Indonesia development, said the project is
expected to start next year.

Feasibility studies have been offered to German utilities
company Siemens, Hochtief and steel company Ferrostahl at a cost
of 100,000 Deutsch marks each.

Habibie said his project committee would forward the proposal
to the government for consideration and hoped it would be
implemented by a presidential decree.

Habibie, who also chairs the Association of Indonesian Moslem
Intellectuals (ICMI), said the megaproject would produce 6,628
megawatts of electricity offered at "competitive prices".

Chairman of ICMI's Center for Information and Development
Studies Adi Sasono said the project is needed to fulfill
Indonesia's future energy needs.

He said the project would be constructed on a Build, Operate
and Transfer scheme and would take 20 years to be completed.

Governor of Irian Jaya Jacob Pattipi said that his office
would mobilize the local people's support for the project and the
relocation of 6,000 tribespeople living in the river's vicinity
to a new town.

Habibie said the 620 kilometer-long Mamberamo river is a
scarcely populated area which he hopes can be transformed to meet
Irian Jaya's need for energy in the future.

The seminar's participants included government and private
companies from Indonesia, the Netherlands, Germany, France and
Japan. (01)