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Megawati kicks off Jakarta monorail construction project JAKARTA - Indonesian President Megawati Sukarnoputri inaugurated Monday construction of a $600 million monorail transportation system in Jakarta that involves a consortium of Indonesian and foreign investors including Hitachi Asia Ltd. The monorail, which will be built as part of a 40-year build-operate-transfer scheme, is expected to ease the capital's chronic traffic and pollution problems.
Under an agreement signed between the Jakarta authorities and the consortium last month, a joint venture company, P.T. Jakarta Monorail, was set up to join with P.T. Indonesia Transit Central, representing three local companies and the Omnico Consortium formed among companies from Japan, Malaysia, Singapore and Thailand. Hitachi will provide the technology for the monorail construction, while an Indonesian company and ST Electronics Ltd., a subsidiary of Singapore Technologies, will build the supporting structures.
The Jakarta authorities have praised Hitachi for applying its monorail technology in Japan for around 40 years without any major errors or fatal accidents. The consortium of foreign investors was established after Jakarta authorities dropped MTrans Holding of Malaysia from its list of potential investors for the monorail project in February for failing to respond to Jakarta's demand to build both more and less lucrative routes for the monorail.
The likely more lucrative Green Line route will run for 14.8 kilometers, serving the city's golden triangle area of Kuningan, Sudirman and Senayan, with 17 stations. The likely less lucrative Blue Line route will be a 12.2-km stretch from Kampung Melayu in East Jakarta to Roxy in West Jakarta, with 13 stations. The consortium was awarded the project as it promised to meet all requirements set by Jakarta authorities, even though MTrans Holding had proposed to build it at less cost.
Jakarta Gov. Sutiyoso had previously expressed concern his administration would be unable to find investors for the less lucrative line. The Monday groundbreaking marked the start of the project. The monorail is due to become operational in April 2007 for the Green Line and in October 2007 for the Blue Line. Indonesia, which has been hit by economic and financial crisis since mid-1997, has begun to revive large-scale projects that are expected to boost the country's economic growth.



Posted in General @ 14 June 2004 00:01 CET by Jeroen · 'Blog' RSS feed · permalink






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