Infrastructures needs $17b in new investments
JAKARTA (JP): The government yesterday invited further private investment in clean water supply, toll roads and transportation infrastructure projects.
Minister of Public Works Radinal Moochtar and Minister of Transportation Haryanto Dhanutirto revealed yesterday that new investments of US$17.1 billion in the three above sectors are open for private participation for the next five years.
Speaking at the Indonesia Summit 1996, an international economic seminar on Indonesia, Radinal said his office has identified 48 cities looking for private sector investment in their water supply infrastructure.
"The Ministry of Public Works is committed to supporting private sector participation in water supply and will consider appropriate support for each investment project on its merits," Radinal said.
He estimated that the required investment in the water supply in the 48 cities over the next five years stands at some $4 billion.
He explained that private investment in water supply could range from concessionaire contracts for operation to joint venture capital investment for a build-operate-transfer or build- operate-own scheme.
The clean water supply business in most cities is currently run by local government-owned enterprises. There are some 300 local government water supply firms across the country.
Radinal said his ministry shares a responsibility to provide some of the headworks for the development of water sources, treatment plants and, to a lesser degree, the transmission mains.
He added that his office is committed to providing additional infrastructure with a combined capacity of 30,000 liters of water per second to urban centers during the next five years, which will need an additional investment of $1.3 billion.
"The rapid growth rate of urbanization is increasing the demand for urban water supply," Radinal said.
In addition to water supply, the Ministry of Public Works has also identified 541 kilometers of toll road projects to be offered to the private sector.
He did not elaborate on the projects but said that they are in Java, Sumatra and Sulawesi.
He said the government expected investment in the toll road sector for the current sixth five year-development plan, which started in 1994, to total $4.2 billion.
In the past two years to March 1996, the construction of 53 kilometers of toll roads has been completed, while 235 kilometers is still under construction.
Contracts for the construction of another 229 kilometers were awarded in March, Radinal said.
Meanwhile, Minister Haryanto noted that transportation infrastructure, excluding roads and vehicles, need a total investment of $13.7 billion, of which $8.9 billion is expected from the private sector.
By April 1996, the government had received 43 proposals for transportation infrastructure projects under joint operation or joint venture schemes with state-owned firms. The investments for these totaled $3.5 billion.
The government has so far approved 10 proposals with total investments of $1.2 billion. They include the construction and management of the third container terminal at Tanjung Priok port in Jakarta, the development of dry-bulk facilities at Tanjung Perak port in Surabaya, East Java, and calibration for air navigation.
Haryanto said his ministry is currently processing other private investment projects, including those on mass rapid transit facilities for urban transportation in Jakarta, the Manggarai integrated terminal also in Jakarta, Jakarta-Surabaya express trains and new airports in Medan, North Sumatra, and in Lombok, West Nusa Tenggara. (rid)