Six firms to build Java toll roads

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)