Japanese firm to invest billions in tollway project
Japanese firm to invest billions in tollway project
JAKARTA (JP): Mitsui Corporation of Japan, the world's biggest trading company, is preparing a fund of Rp 18 trillion (US$8.1 billion) to built 19 tollway segments in Java and Sumatra totaling 770 kilometers in length, an Indonesian executive said.
"Among 94 bidders, Mitsui is the only contender prepared to build all 19 segments," said the chief of the legal bureau of PT Jasa Marga, Yunial Harun, as quoted by Antara Friday night.
Jasa Marga, a state-owned construction concern, is the only agency assigned to supervise and manage Indonesia's toll roads. All private investors in this sector, therefore, must either form a joint-venture or a joint-operational body with Jasa Marga.
Maryadi Darmokumoro, president of Jasa Marga, confirmed Yunial's statement, as reported by Bisnis Indonesia on Saturday.
The Ministry of Public Works and Jasa Marga announced in April the tender for the construction of the 19 toll road segments.
Maryadi also said the entire value of the toll road projects is Rp 6.07 trillion, far lower than the funds being prepared by Mitsui, which does not propose any local partner.
Last year Mitsui formed a consortium with a number of domestic firms, as well as with Jasa Marga, to build an outer-ring toll road segment in South Jakarta. The consortium, however, failed to win the bid, reportedly due to internal rifts.
No Mitsui executives were available for comment over the weekend.
Maryadi also said that his office is still in the process of legal and financial auditing of the 94 bidders.
He said that the final result will be announced on June 19.
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Officials have said that 18 of the toll road segments are located in Java, while the remaining one would link Medan, Sumatra's biggest city, to the neighboring Binjai area.
The road projects are to be carried out under a build, operate and transfer scheme, in which investors can establish either a joint venture or joint operation with Jasa Marga.
The segments in Java include three roads connecting Sadang in Cikampek with Palimanan in Cirebon, both in West Java, three connecting Ciawi and Citatah in West Java and three connecting Cirebon and Batang in West and Central Java.
There is to be an 80-kilometer Semarang-Surakarta segment in Central Java and a 209-kilometer Surakarta-Mojokerto toll road linking Central and East Java, which are divided into five further segments.
Also planned are a 24-kilometer Surabaya outer ring road, a 29.5-kilometer Pandaan-Malang freeway segment and a 40-kilometer Pasuruan-Probolinggo segment, all in East Java.
Maryadi was also quoted Saturday as saying that the three most popular segments are those connecting Sadang-Subang, Subang- Dawuan and Dawuan-Palimanan, all in West Java.
The executive also said there are foreign companies from Singapore, Malaysia, the Philippines and Taiwan -- all without local partners -- which have submitted their bids for some segments of the roads.
Maryadi, however, declined to identify those foreign firms. (hdj)