Indonesian Political, Business & Finance News

Many city projects miss deadline

| Source: JP

Many city projects miss deadline

Bambang Nurbianto, The Jakarta Post/Jakarta

Residents hoping there will be better public facilities in the
near future are set for disappointment, with many infrastructure
projects, including new busway corridors and flood mitigation
systems, likely to miss their Dec. 31 completion target.

City Secretary Ritola Tasmaya said on Friday that about 25
percent of the projects worth Rp 3.5 trillion (US$340 million) in
the city would likely go beyond their Dec. 31 deadline.

He said several factors had slowed down the projects,
including the current campaign against corruption.

The intensive campaign against corruption, according to
Ritola, has prompted officials to be overcautious in carrying out
tenders for projects handled by their respective agencies.

This year, the administration alone allocated Rp 515 billion
for new busway corridors, Rp 450 billion for land acquisition for
flood canal projects, Rp 400 billion for river dredging, Rp 400
billion for waste treatment facilities, Rp 150 billion for
underpass and overpass construction and Rp 150 billion for low-
cost apartments.

Ritola did not mention which projects would go past the
deadline, but said that nearly all agencies under the Jakarta
administration had proposed extending the construction period of
their projects.

He said the administration would give up to April 2006 to
project developers to complete their projects, which is in line
with a decree of the Ministry of Finance issued last month.

"The minister of finance issued a decree giving up to April
for projects financed by city and regional budgets," he announced
at City Hall.

Before the decree was issued, all projects financed with
taxpayers' money were to be completed by Dec. 31, otherwise the
money was to be returned to the city/regional treasurers.

Two busway corridors -- one Pulogadung in East Jakarta to
Harmoni in Central Jakarta and another Harmoni to Kalideres in
West Jakarta -- are still under construction.

The corridors are expected to help smoothen the movement of
travelers, particularly bus passengers from the eastern to the
western parts of the capital.

Currently, the city operates 60 buses along the busway
corridor from Blok M in South Jakarta to Kota in West Jakarta.
Next year, the city plans to develop four more busway corridors
across the city.

Other projects include the construction of the East Flood
Canal, which is expected to alleviate annual flooding in the
eastern part of the city, and the construction of low-cost
apartments to relocate low-income families from riverbank slums.

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