JP/5/TUNNEL

JP/5/TUNNEL

Govt invites private investors in tunnel project

Oyos Saroso H.N.
Bandarlampung, Lampung

Private parties are expected to invest in the construction
project of a tunnel that will connect the major islands of Java
and Sumatra.

"Funding for the project will come from the government and
private parties. But several consortia from European countries
and China have also expressed an interest in investing in the
project," said Harris Hasyim, head of the Lampung Development
Planning Board (Bappeda Lampung).

Harris said the mega project, the first ever in the country,
would cost US$15 billion.

"Some domestic investors have also expressed an interest in
participating in the project," he said.

Potential investors include state-owned oil and gas company PT
Pertamina, state telecommunications giant PT Telkom, state gas
company PT Gas Negara, state electricity company PT PLN,
telecommunications company PT Indosat, state-owned train operator
PT KAI and coal mining company PT Bukit Asam.

The tunnel is to span 33 kilometers across the Sunda Strait
between Java and Sumatra and is located 40 meters below the
seabed.

The construction of the tunnel aims to facilitate the smooth
flow of people between the two islands, which are the most
populated among the islands of the vast archipelago.

A feasibility study for the project is to be conducted soon,
and the tunnel is expected to be finished by 2015.

Harris said the feasibility study alone would take two years.
The study and the construction of the tunnel had to be conducted
carefully, because the project was near the site of two small
active volcanoes, called the Anak Gunung Krakatau, or Mt.
Krakatau's children.

He said the tunnel would make it easier for people to travel
between Java to Sumatra. Currently, people and goods cross the
strait by ferry and speedboat from Merak Port in Banten province,
Java, and from Lampung's Bakauheni Port.

The strait can be crossed in three to four hours by ferry and
45 minutes by speedboats on normal seas. Speedboat operators may
cancel the trip if sea conditions are extremely severe.

Once the tunnel is complete and operational, it will take only
30 minutes to cross the strait.

The strait between Java and Sumatra is one of the busiest sea
routes in the country. Some 13 to 20 million people cross the
Sunda Strait each year, and this figure is expected to grow. By
2020, the number of cross-strait travelers is estimated to reach
40 million.

Besides providing a smoother flow of people and goods, the
tunnel also aims to overcome heavy traffic at Merak and Bakauheni
ports over the Idul Fitri Islamic holiday. "The terrible
condition has continued from year to year, and must be stopped,"
said Harris.

The tunnel will be 8.5 meters wide and 6.6 meters high, and it
can accommodate 15,500 cars per day.

Asrian Hendi Cahya, a Lampung University lecturer, said if the
project was realized, the people of Lampung would benefit
greatly. "Lampung will become one of the country's economic
centers, as more people will invest in Lampung," he said.