Marga Mandalasakti to build two more toll roads
Marga Mandalasakti to build two more toll roads
JAKARTA (JP): PT Marga Mandalasakti, the builder of the 72-
kilometer Tangerang-Merak tollway in West Java, has been assigned
to construct two more toll roads in the province at a total cost
of Rp 520 billion (US$222 million).
The company's director, M. Idris Ranadipura, said yesterday
that his company has secured government licenses to build the two
tall roads, comprising a 60-kilometer tollway from Cilegon to
Labuan and a 13-kilometer road from Cilegon to Teluk Banten.
"The establishment of the Cilegon-Teluk Banten toll way is to
support the planned Teluk Banten container terminal, which will
be built next year," Idris was quoted by Antara as saying.
The Cilegon-Labuan tollway is to accommodate the growing
tourists from Jakarta to Labuan, Idris added.
He explained that his company is currently conducting a
feasibility study on the new projects and plans to start their
construction by the end of next year.
The Rp 520 billion total cost consists of Rp 420 billion for
the Cilegon-Labuan toll road and Rp 100 billion for the Cilegon-
Teluk Banten tollway.
"The financing for the construction of the two toll roads will
come from equity and also from loans," Idris said after signing
an agreement between his company and securities firm PT Makindo
on the subscription of his company's new shares worth Rp 175
billion and convertible bonds worth Rp 175 billion.
Minister of Public Works Radinal Moochtar witnessed the
signing of the agreement.
Idris said the funds raised from the share and bond issuance
will be used to finance the construction of the two toll roads
and also to repay the company's debts.
Gunawan Jusuf of PT Makindo explained that a number of
investors were committed to subscribing to the shares and
convertible bonds. They include Asian Infrastructure Fund Adviser
Ltd., Williams Companies and Garuda Investment Fund.
Idris said his company needs long-term funds to finance its
debts, especially short-term debts, because investment recovery
in the building of toll roads can range from seven to 12 years.
Marga Mandalasakti has spent Rp 650 billion on constructing
the 72-kilometer Tangerang-Merak toll road.
The company is controlled by a consortium grouping PT Humpuss,
PT Hanurata COY Ltd., state-owned pension fund firm PT Taspen,
toll road operator PT Jasa Marga, state-owned steel manufacturer
PT Krakatau Steel, state-owned workers insurance firm PT Astek
and the Sarana Wana Jaya Foundation. (rid)