Internal disagreement stalls monorail project
Internal disagreement stalls monorail project
The Jakarta Post
Jakarta
A disagreement among shareholders of PT Jakarta Monorail (JM)
over who should supply 76 trains for the city's first monorail
line has stalled the whole project.
A source close to the deal said that Omnico Singapore Pte.
Ltd., which owns 45 percent of JM shares, had insisted on using
trains produced by South Korea's Rotem, while PT Indonesian
Transit Central (ITC), which owns the remaining 55 percent, would
prefer to use trains produced by a local consortium.
The source said that using Rotem technology would push the
cost up to US$826 million -- $345 million for the rolling stocks
or trains and its system and the remaining $481 million for line
construction.
Should JM use the technology to be developed by an Indonesia
consortium, the total cost of the project would stand at around
$426 million only -- $176 million for trains and its system and
the remaining $250 million for line construction, the source
said.
The source also said if JM used Rotem's cars, 60 percent of
the revenue from the planned electronic road pricing (ERP),
enforced along the roads parallel to monorail lines, should be
allocated for the monorail project.
Governor Sutiyoso, who granted the project to JM, confirmed
the rift on Tuesday, and gave the consortium until Thursday to
decide on the rolling stock supplier.
"We can not wait much longer," Sutiyoso said at City Hall.
JM director Sukmawati confirmed the differences between ITC
and Omnico about the rolling stocks supplier, saying that
Thursday's consultation with the administration was expected to
bridge the rift.
JM was expected to announce the technology to be used in the
project on July 28.
Sutiyoso said that his administration preferred to use
monorail cars produced by the Indonesia consortium, because of
cost considerations.
"With Rotem cars, the total price of the project would be over
$800 million. The investors are also asking for a major part of
the turnover from ERP," he added.
JM predicted that the ERP revenue would reach some $100
million per year.
The Indonesian consortium, which came late to the project, is
supported by several companies -- U.S. investment bank J.P.
Morgan, the Bukaka Group, state train carriage maker INKA, state
electronic maker LEN Industries and Siemens. It is also supported
by Hong Kong-based Mass Transit Railway Cooperation (MTRC).
The Bukaka Group is partly owned by the family of Vice
President Jusuf Kalla.
JM and the city administration had previously terminated a
contract valued at $540 million for the same project with a
Malaysian company, MTrans Holding Bhd, due to financing problems.
The monorail project was started in June last year and is
expected to be finished in 2007.
When up and running, the monorail will cater to transportation
needs in the prime business areas of the city through a 14.3-
kilometer line as well as a 13.5-kilometer line from Kampung
Melayu in East Jakarta to Taman Anggrek Mall in West Jakarta.