Suramadu bridge waits for funds

Suramadu bridge waits for funds

JAKARTA (JP): The construction of a six-kilometer Suramadu
bridge connecting Surabaya and Madura island in East Java has yet
to be started because all the parties involved are still in a
"waiting position", said the Minister of Public Works Radinal
Moochtar.

He said that the parties involved in the development of the
US$260.86 million bridge include the Japanese Overseas Economic
Cooperation Fund (OECF), as a creditor, industrial investors led
by Salim group, and East Java's water supply company.

"The government agrees that the construction should start. So,
we hope OECF will soon fulfill its commitment to finance the
construction of the bridge," Radinal was quoted as saying on
Tuesday by Antara.

He said OECF which is expected to finance two thirds of the
total investment is still assessing the project feasibility
study.

According to Radinal, the Japanese financial institution is
still evaluating the repayment prospects of the loan.

"Some of its executives think that the development of big
industries should precede the building of the bridge to guarantee
the repayment of the loan," he added.

"But, we still expect the construction of the bridge will be
started by the middle of this year," he said.

Early last year, the government formed a consortium, chaired
by the State Minister of Research and Technology B.J. Habibie, to
prepare the bridge project and industrialization plans for Madura
island.

The consortium consists of Japanese companies: Mitsubishi
Corp., Itochu Corp. and Long-Term Credit Bank and Indonesian
companies: PT Bukaka Teknik Utama, industrial estate in East Java
PT SIER, state-owned shipbuilding company PT PAL and steel
producer PT Krakatau Steel.(04)