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)