MOU on subway project signed
MOU on subway project signed
JAKARTA (JP): Governor Surjadi Soedirdja and representatives
of a multinational consortium signed a memorandum of
understanding yesterday to prepare a basic design for Indonesia's
first subway system.
Under the memorandum, the consortium, called the Indonesia-
Japan-Europe group, will handle the basic design of the US$1.3
billion subway project.
Yesterday's signing ceremony was attended by Minister of
National Development Planning/Chairman of the National
Development Planning Board Ginandjar Kartasasmita, Minister of
Research and Technology B.J. Habibie, Minister of Public Works
Radinal Moochtar and Minister of Transportation Haryanto
Dhanutirto.
The basic design is expected to cost an estimated US$8
million, of which $5 million will be provided by foreign
companies, $2.5 million by local firms and the remaining $500,000
by the city administration.
The foreign investors joining the consortium consist of
Japanese companies led by the Itochu Corp. and European firms by
Ferrostaal AG of Germany.
The Indonesian investors, led jointly by PT Citra Lamtorogung
owned by Siti Hardiyanti Rukmana, President Soeharto's eldest
daughter, and PT Bakrie Investindo, a subsidiary of Bakrie Group,
consist of PT Pembangunan Jaya, PT Lippo, PT Bukaka/PT Kuda
Perkasa, PT Suhamthabie and PT Steady Safe.
"The Indonesian investors' portion in providing the funds will
be divided equally among members of the group," Aburizal Bakrie,
president of Bakrie Group, told reporters after the signing.
Aburizal explained that the consortium will also be assigned
as the group to handle the construction of the subway project.
The funds invested in the basic design's preparation will
become part of the investors' equity in the project, he said.
The making of the basic design, which will include feasibility
studies on the project's technical, financial and environmental
aspects, and the calculation of ticket fares, will start in
September and is expected to be completed within one year.
As soon as the basic design is completed, a joint venture
between the city administration and the consortium will be set up
under the name the Jakarta Metro Corporation (JMC), which will be
in charge of overseeing the project.
"JMC will later open tenders to select companies, which will
participate in the construction of infrastructure, the provision
of rolling stocks and the establishment of properties," Aburizal
said, adding that those companies will work under the build,
operate and own (BOO) system.
Habibie, who is also the head of the steering committee of the
subway project, said that the 14.5-kilometer subway system is but
the first phase of Jakarta's underground system, which will cover
a total of 280 kilometers.
"This system is expected to help solve traffic problems in the
city," Habibie said, adding that hopefully this first phase will
be completed by Aug. 17, 2001. (yns)