Retrenchment plan will not affect CMNP toll road project

JAKARTA (JP): Publicly listed toll road operator PT Citra Marga Nusaphala Persada (CMNP) said yesterday the government's retrenchment of the country's toll road development would not affect its projects.

Finance Director Tito Sulistio said the company's toll road projects would continue despite the government's cutback measures.

He acknowledged that the company's 36.6 kilometer Waru-Tanjung Perak toll road in Surabaya was one of the projects which should be reviewed.

"But this project will go ahead because we have no problem with financing," Tito said.

The government announced Tuesday the postponement or review of Rp 105 trillion (US$35.6 billion) worth of government or state- related projects.

They include the postponement of 29 toll road projects and a review of 19 others.

The Waru-Tanjung Perak toll road project in Surabaya is included on the list of projects to be reviewed. This means the projects can go ahead as long as investors have the money.

Tito said the company had no problems with financing the Waru project as the company had issued bonds worth $125 million in Luxembourg and another worth Rp 275 billion in Indonesia.

Earlier this month, he said, the company had raised Rp 500 billion from the rights shares issuance.

"There is no reason for us to postpone the project. We have the funds to finance the project," Tito said.

The project will be developed in three stages. The first stage, covering 14.4 kilometers, will connect Juanda and Waru and is expected to be completed in 1999.

The second stage, covering 11.1 kilometers, will link Tanjung Perak and Kenjeran and is expected to be completed by 2000. The third phase, 11.3 kilometers, will connect Tanjung Perak and Tambak Oso and is expected to be completed in 2001.

Citra Marga Nusaphala Persada is controlled by President Soeharto's eldest daughter, Siti "Tutut" Hardiyanti Rukmana.

Tito also said yesterday the company had to revise down its net profit projection to Rp 141 billion from Rp 150 billion this year due to the currency turmoil.

But he said the currency crisis, which has hit Indonesia over the past few months, had not adversely affected the company.

"Even if we suffer a foreign exchange loss, it will be compensated by the interest income," Tito said.

He said the company predicted a Rp 55 billion foreign exchange loss this year. (aly)