PAL wins tender to build ship for East Timor

The Jakarta Post, Jakarta

The country's largest shipyard, state-run PT PAL in Surabaya, has won an international tender to build a passenger and car ferry for East Timor.

The German government would provide financing for the construction of the vessel through the German Development Bank, the bank said.

The bank did not specify how much the ferry would cost but said funds set aside for its purchase, the extension of harbor facilities at three landing sites and the construction of maintenance facilities would amount to 5.7 million euros (about US$7 million).

The financing agreement between the bank and the East Timor government was signed on June 25, while a contract with PAL had yet to be signed, the bank said.

The "roll-on roll-off" ferry is to ply a route between the capital of Dili, Oecussi and Atauro island and transport up to 300 passengers as well as vehicles, general cargo and cattle.

The ferry would been a boon to the inhabitants of Oecussi who preferred to travel by sea to Dili rather than use roads for economic and safety reasons, the bank said.

The service would also be affordable and would help encourage economic development and alleviate poverty in the country, it said.