Six firms to build Java toll roads

JAKARTA (JP): The state-owned toll road operator, PT Jasa Marga, announced yesterday the six companies that have won contracts to develop seven toll roads in Java.

The successful bidders are PT Bakrie Investindo for the 34- kilometer Cirebon-Tegal road in Central Java, PT Sumber Mitra Jaya for the 56-km Tegal-Pemalang road and the 35-km Pemalang- Batang road in Central Java, PT Bukaka Teknik Utama for the 40-km Pasuruan-Probolinggo road in East Java, PT Karsa Semesta Indah for the 80-km Semarang-Solo road in Central Java, PT Hanurata Coy Ltd for the 38-km Kertosono-Mojokerto road in East Java and PT Bina Puri Holding BHD for the 30-km Ciranjang-Padalarang road in West Java.

Jasa Marga said in a statement that the six developers were required to establish joint ventures with the supporting partners mentioned in their tender contracts, all of which included PT Jasa Marga.

In March, Jasa Marga awarded contracts to six companies to develop six other toll roads in Java.

The 13 toll roads are among the 19 toll road projects, totaling 770 km, in Java and Sumatra which have been offered to private investors by Jasa Marga.

The government is yet to award contracts for the remaining six projects, which include five toll roads in Java and one in North Sumatera (Medan-Binjai).

Some 94 local and foreign companies have expressed interest in investing in toll road projects, but the government has only chosen 29 firms as qualified bidders.

Jasa Marga did not say how much the seven toll roads would cost to build.

But according to Jasa Marga data, the cost of building toll roads outside urban areas averages Rp 10 billion (US$4.3 million) for every kilometer. This does not include the cost of land which may be as high as 15 percent of total construction costs.

The construction cost in urban areas is about Rp 50 billion a kilometer. This does not include the cost of land which may amount to 35 percent of total construction costs. (13)