Soekarno-Hatta to Jakarta Rail Line Attracts Global Investors

Eiffage Concessions, one of the largest European firms that engages in the public works sector, has expressed interest in the railway construction project that will connect the Soekarno-Hatta International Airport and Manggarai district in South Jakarta.

The government has previously detailed a plan to build two railway lines — express and commuter ­— connecting soon-to-be-expanded Soekarno-Hatta International Airport with Manggarai.

While state-owned airport operator, Angkasa Pura II, and state railway operator, Kereta Api Indonesia, will jointly handle the Rp 1.7 trillion ($178 million) commuter line, the government has invited private firms to participate in the express line which will be more costly.

Jacques-Nicolas Ojea, an Eiffage Concessions representative, revealed the French firm’s interest in the 19.3 kilometer railway line during an event on public-private partnership (PPP) infrastructure projects held by the Indonesia Investment Coordinating Board (BKPM) in London on Wednesday.

“Our company is interested in developing the Manggarai-Soekarno Hatta Railway line,” said Ojea, as quoted by state news agency Antara.

Ojea said that he will visit Jakarta in the near future to discuss the plan further. “A day would not be enough [time] to talk about this huge project,” he added.

In addition to Eiffage, companies from the United States, Japan and Spain were said to have shown interest in the project. The express line is an elevated railway track that will go directly to Manggarai from the airport. The project would cost $1.1 billion and the government is currently conducting a feasibility study to determine the best possible routes.

The commuter line has begun and will be fully operational in 2014. The project will involve the construction of additional tracks on the existing line to Tangerang.

The Soekarno-Hatta airport is currently undergoing a massive $1.2 billion overhaul that will increase its capacity to 62 million passengers a year.

The airport, which is the 12th busiest in the world, suffers from overcrowding. Last year it handled some 51.5 million passengers, well above its maximum capacity of 22 million passengers per year.

Aside from the railway project, BKPM deputy chief Tamba Hutapea, said that at least four more PPP infrastructure projects were also being offered during the event.

The projects include a water treatment plant in East Java with an estimated value of $78 million, a 60.1-kilometer toll road in West Java ($1 billion), a 450-megawatt hydro power plant in West Sulawesi ($1.3 billion) and a solid waste management facility in Riau Islands ($120 million).

“We have held similar events in Hong Kong and Amsterdam and are planning for another in New York,” he added.

Tamba said the event is not only aimed at interested investors but is also an opportunity to learn about past experiences in handling PPP projects from the host country. “England is one of the countries which has a long experience in PPP schemes,” he noted.

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Airport and toll road become priorities in 2012

JAKARTA: Ministry of National Development Planning reveals the priorities in infrastructure construction next year, which is included in Indonesia’s Master Plan of Economic Development Expansion Acceleration (MP3EI).

The priority of infrastructure development will be focused on MP3EI projects and Metropolitan Priority Area (MPA), said Dedy Supriadi Priatna, Deputy of Facility and Infrastructure at Ministry of National Development Planning (Bappenas).

The projects include expansion of Tanjung Priok Port with investment of US$1.17 billion and expansion of Soekarno-Hatta Airport. The airport expansion features modification of terminal and taxiway, Dedy said.

In addition, the priority include some toll road projects, including Serangan-Tanjung Benoa toll road in Bali with investment US$196.1 million and Pasir Koja-Soreang toll road in West Java with investment of US$143.5 million.

There is also Bandung Intra Toll Road, which will be constructed inside the capital of West Java Province, with investment of US$800 million. Another toll road will connect Cileunyo-Sumedang-Dawuan in West Java with investment of US$1.01 billion.

The first groundbreaking of Cileunyi-Sumedang-Dawuan (Cisumdawu) will take place in January 2012, building 6.35-kilometer road with investment of IDR1.02 trillion.

The groundbreaking may start after the signing of construction agreement on Dec 1 between Directorate General of Road Construction at Ministry of Public Works and the winning contractor consortium, consisting Shanghai Corporation Construction Group, PT Waskita Karya and PT Wijaya Karya.

At the signing ceremony, Director General of Road Construction at Ministry of Public Works Djoko Murjanto said that the start of construction in the Rancakalong-Sumedang section would be completed to increase the project feasibility to 17%.

The feasibility is crucial, as a bidding will be taken to find investor for the project under a public private partnership. Part of the construction uses funding from 2012 State Budget and loans from China.

In the meantime, Binjai-Medan-Kuala Namu-Tebing Tinggi toll road will start construction with investment of US$790.8 million. According to data of MP3EI projects, the 16.91-kilometer road from Medan to Kuala Namu will get funding from China as much as IDR1.22 trillion. The signing of the contract took place on December 12.

In Kalimantan, three main construction project priorities are Malory International Harbor in East Kalimantan with US$1.78 billion investment value, extension of Tjilik Riwut Airport in Central Kalimantan US$11.3 million and Tayang Bridge in West Kalimantan IDR740 billion.

The construction of two special economic zones, Sei Mangke in South Sumatera and Tanjung Lesung in Banten, Dedy continued, also become government main focuses. According to MP3EI project data, SEI Mangke needs IDR334 billion while the construction of industrial zone needs IDR2.50 trillion.

Tourism spot Mandalika in Lombok, West Nusa Tenggara will also become new economic zone in 2012. The development requires IDR829 billion to construct infrastructure, public facilities, hotels, villas, residential areas and golf field.

Airport and toll road become priorities in 2012 – Bisnis.com.

Adhi Karya targets 2.7 triliun rupiah from EPC contracts next year

JAKARTA: State-controlled construction firm PT Adhi Karya Tbk is eyeing IDR2.7 trillion from new contract from engineering service, procurement and construction (EPC) projects in 2012.

The company will be more focused on EPC projects for power plant and oil and gas exploration, said Operational Director Sumadiono.

“We will be more selective next year, thus 2012 EPC projects’ target is lower than this year,” he said yesterday.

Contract for EPC projects in 2011 are expected to reach IDR4.6 trillion. Up to November, the company has netted IDR3.8 trillion.

Some of Adhi’s major EPC projects this year include the residual fluid catalytic cracker project from PT Pertamina (Persero) in Cilacap worth US$847 million and central processing plant in Blora.

President Director Kiswodarmawan said that total contract for next year is expected to hit at IDR13.3 trillion, 6.4% higher than this year target at IDR12.5 trillion.

Contracts being carried over to 2012 are estimated to reach IDR11.5 trillion, of which IDR6.44 trillion will come from construction, IDR5.92 trillion from EPC, IDR35 billion from property and IDR5 billion from real estate.

Revenue is projected to reach IDR9.42 trillion in 2012, 34.5% higher than this year target of IDR7 trillion.

“Net profit is projected at IDR204.65 billion, higher than IDR183.37 billion targeted for this year,” he added.

Adhi Karya is planning to construct a 100-storeys tower as the new symbol of Jakarta starting in mid-2012, estimated to cost around IDR2 trillion.

To finance the project, the company is planning to conduct rights issue in the second half of 2012 and proposing a share subscription option to the government.

Adhi Karya targets 2.7 triliun rupiah from EPC contracts next year – Bisnis.com.