Jakarta toll road project up for tender in July
JAKARTA (JP): The government will begin in July the tendering process for the resumption of the Jakarta Outer Ring Road (JORR) project which had been suspended since 1998, an official said on Monday.
A spokesman for state toll road operator, PT Jasa Marga, Hengki Herwanto said the preferred bidder status of the Malaysian consortium under DRB-HiCom would be maintained despite the launch of the toll road project's tender.
As preferred bidder, the Malaysian consortium had the "rights to match" the winner of the tender, Detikcom online news reported.
He said that there will be a general explanation of the tendering process to investors on May 28, and invitations for prequalifications will be issued later in July.
The Jakarta Outer Ring Road project comprises a 69.3 kilometer road designed to link all outlying areas of Jakarta in order to ease traffic congestion in the capital.
It was originally constructed by PT Citra Bhakti Margatama Persada, PT Citra Mataram Satriamarga Persada, and PT Marga Nurindo Bhakti, under a build-operate-transfer scheme with Jasa Marga.
The three companies were linked with former president Soeharto's daughter Siti Hardiyanti Rukmana, also known as Tutut.
Investors financed the project with loans worth Rp 1 trillion (about $91 million) from local banks, which turned sour after the government suspended the project as part of its retrenchment plan to cope with the economic crisis in 1998.
The project was then passed over to the Indonesian Bank Restructuring Agency (IBRA) which has since then, together with Jasa Marga, established a new company, PT Jalantol Lingkarluar Jakarta, to continue the project.
The Malaysian consortium was named preferred bidder by IBRA in March due to its long-term commitment to the project.
The agency said that the continuing construction would need investment of around Rp 4 trillion and that the Malaysian consortium had agreed to provide Rp 1.2 trillion from its private funds while another Rp 2.8 trillion was to be in the form of bank loans.
The consortium had also agreed to provide Rp 800 billion for land acquisition that the government was expected to supply.
The consortium comprise two subsidiaries of the semi- governmental company, BRD-HiCom BHD -- Perspec BHD and Comtrac BHD -- as well as Roadbuilder SDB BHD, Ranhill Corporation SDN BHD.
Several local and foreign investors had also expressed interest in the project, including Torno from Italy, Apil from Australia, and PT Citra Marga Nusaphala Persada (CMNP), whose president director is Siti Hardiyanti Rukmana.
Hengki said that although the tender was open to local and foreign investors, a regulation from the Financial Sector Policy Committee stipulates that companies linked with previous investors are automatically defaulted in the tender.
"Personally, I am not sure of the details, they might be allowed to bid but would be evaluated later on," he said.
Earlier, Minister of Settlement and Regional Infrastructure Erna Witular said that she could not forbid CMNP from bidding but that it's involvement in the tender process would likely cause controversy. (tnt)