Wednesday, 9 May 2012

FEASIBILITY STUDY FOR THE SUNDA SRAITS BRIDGE MAY BEGIN

            Development of the Sunda Straits Bridge which linked Sumatra and Java might begin its feasibility study which might take 24 months to accomplish, after signing of preparatory plan between initiator company of the consortium PT Graha Banten and lampung Sejahtera. The task would be executed in early May 2012 in tandem with staging of the Indonesia International Infra Structure Conference and Exhibition 2012, this was disclosed by the Deputy Coordinating Minister, Infra Strucrure and Area Development Division Lucky Eko Wurujanto recently.

            He admitted that the case was still being discussed at the ministerial level before arriving at a point of agreement between the two parties. With the signing of agreement, the initiator could begin feasibility study process over a period of 24 month “All must be discussed, hopefully agreement could be signed soonest and feasibility study may at once begin” Eko remarked.

            That the agreement was not signed was on account of the still existing differences in terms of cost of feasibility study between the Government and the consortium. The Consortium estimated that the cost of feasibility study which amounted to USD 250 million or around Rp 3.2 trillion or twice as much as Government’s version of compensation expenses of Rp 1.5 trillion or 1% of total investment of project.

            Previously PT Graha Lampung Sejahtera was hoping the Government would still follow the compensation rules of feasibility study for the Sunda Straits bridge according to the magnitude of cost soon proposed by the consortium. The rule for compensation payment must refer to Presidential Regulation Perpress No. 86 year 2011 on Development of Sunda Straits Bridge Region.

              In the Perpres it was stated that if the project were to be cancelled by the Government, or the initiator failed to emerge as winner of the tender, all cost spent by the initiator for preparing yje project would be refunded by the Government or winner of tender. This means that if the investment were spent by the consortium as executor of feasibility study, the fund to be paid by the Government must be in accordance with the amount previously estimated, i.e. USD 350 million, this was disclosed by Agung R. Prabowo, Director of Graha Banten Lampung Sejahtera.  

BUSINESS NEWS - April 27, 2012

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