Monday, 31 January 2011

Investors Still Careful about Building Railway Projects worth US$ 3.14 billion

Up till now there has been no application or offer to collaborate from any investor to nine railway building projects worth US$ 3.4 billion or Rp. 2.8 trillion offered by the Indonesian Government; the collaboration will be on the basis of public private partnership. It appears that foreign investors would need longer time to make field survey and studies of the projects.

The nine railway projects which was being offered at the Asia Ministrial Conference and Investment 2010 consist of : route Rumbang – Samba – Nangga Bulk at the Province of Central Kalimantan, which will be used for transportation of natural resources products; the project is worth US$ 1.86 million.

Other projects being offered are the monorail project for mass transportation in Padang, West Sumatra, worth US$ 465 million the railway project of Maratuhub - Kalipajak in Balikpapan, East Kalimantan, for coal transportation worth US$ 484.2 million.

Furthermore there would be the railway project covering Kundangan – Kumai in Central Kalimantan for transportation of natural resources worth US$ 890 million. And then there is the railway route covering Kuala Kurun – Palangkaraya – Pulau Pisang – Kuala Kapuas in Central Kalimantan for transportation of natural resources worth US$ 2.07 million.

Not less important is the monorail project for mass transportation in greater Jakarta worth US$ 475 million which would be included in the PPP scheme by request of PT Jakarta Monorail as developer. In Bandung, West Java, there will be building of Gede Bage railway station for mass transportation worth US$ 121.1 million.

Furthermore there is the Bengkuang Lupak Dalam railway in Central Kalimantan, which was used for coal transporation at the value of US$ 1.31 million, and the Puruk Cahu – Bengkuang in Central Kalimantan, which will be used for transportation of natural resources, at the value of US$ 700 million.

About that Double Track train project and the Double Double Track from Manggarai to Cikarang, in collaboration with the Japan International Cooperation Agency, it was reported that the process has not been running smoothly because PT Kereta Api is still having difficulties in land clearing especially in Jatinegara district where people demand high payment for land clearing.

As with the Double Double Track Program, the Government planned to re-route the track by shifting is 5 meters aside from the original plan. If PT Kereta Api was having difficulty in land clearing, the route would be change. Soon the project would be included in to Pacage A of the Double Double Track, namely Manggarai – Jatinegara route which was worth US$ 24.4 billion, Tunjung Herawan, Director General of Railway was quoted as saying.

Apart from Package A of DDT, there is the package B1, which is electrifiction and signaling on the Bekasi Cikarang section worth Yen 21.6 billion (around Rp. 2.1 trillion) and package B2 which includes DDT of Jatinegara Bekasi worth Yen 12.6 billion (Rp. 1.2 trillion).

No comments: