Subway project to start in 1997

Subway project to start in 1997

JAKARTA (JP): The construction of the first city's subway
system, linking Blok M in South Jakarta with Kota in West
Jakarta, will start in 1997, an official says.

The head of the city development planning board, Budihardjo
Suksmadi, said yesterday that the financial and technological
studies underpinning the subway project are expected to be
completed by October 1996.

Budihardjo was speaking after attending a meeting concerning
the development of the subway between the governor and the
president director of Ferrostaal AG of Germany.

Ferrostaal is the lead European investor in the Indonesian
Japanese European Group, the consortium which is to develop the
proposed 14-kilometer underground rail line.

"We are conducting a study to get the view about the project
of those Jakartans who live in the areas between Blok M and
Kota," he said.

The city administration hopes that the subway will help
overcome traffic congestion in Jakarta. The proposal for the
US$1.3-billion project was approved by President Soeharto in
February.

The city administration signed a memorandum of understanding
with the consortium in August concerning the subway's basic
design and a financial and technical study.

The consortium consists of several companies from Japan,
Indonesia and Europe. The Indonesian investors are led by PT
Bakrie Investindo and PT Citra Lamtoro Gung, while Itochu
Corporation is the leading Japanese investor.

The city administration contributed $500,000, Indonesian
investors $2.5 million and the other investors a total of $5
million towards the design of the subway.

The consortium is expected to have completed the basic design
of the subway by August 1996. (yns)