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JAKARTA - Indonesia's government agreed Thursday to provide most of the Rp 2.7 trillion (US$319.5 million) needed to construct a bridge linking the Indonesian island of Madura to densely-populated East Java province. "It has been decided that the funding will come from the state budget, from the provincial budget, the (state-owned road building firm) Jasa Marga and $150 million from the People's Republic of China," Settlement and Infrastructure Minister Sunarno said.
Speaking after a limited cabinet meeting on the economy, Sunarno said Jasa Marga will provide some Rp 400 billion while the remainder will come from the annual state budget and the annual provincial budget. The province will mostly have to pay for land compensation for the project, especially on the Java onshore part in Surabaya, the capital of East Java and the second largest city in the country.
Sunarno said the 5.4 kilometer (3.35 mile) bridge project will be completed six month earlier than initially planned, at the end of 2006. The government is planning to develop Madura, an arid island, into an industrial center to support the facilities currently in Surabaya.
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