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.

http://www.thejakartaglobe.com/business/soekarno-hatta-to-jakarta-rail-line-attracts-global-investors/545552

Government to hold bid towards 17 infrastructure projects, valuing IDR 89 trillion

JAKARTA: About 17 infrastructure projects, employing public private partnership and valuing IDR89 trillion are ready to be transacted.

Those 17 projects are parts of 79 infrastructure projects being included in Project Plan Book 2011, valuing US$53 billion, said Director for Public Private Partnership Development, Bastary Pandji Indra.

“From the documentation preparatory stages until now, there have been 17 infrastructure projects that will be transacted with public-private partnership scheme, costing nearly IDR100 trillion. This is a relatively significant amount of investment,” he said in a release sent to Bisnis.

Those projects include Central Java Coal Fired System Power Plant, valuing US$3 billion.

Second project happens to be Puruk Cahu-Bangkuang Coal Railway (US$2.1 billion). Government is now finalizing agreement drafts with investor and coal operator merely to complete the auction documents.

The third project, Umbulan Water Supply (US$204.2 million) has been in pre-qualification phase (PQ) and is now undergoing auction documentation. Probably, within the next two-three months, the auction document will be ready and investors joining pre-qualification phase will submit its bids.

Fourth, Maros Water Supply (US$12.9 million) the PQ has began on 16 August and the PQ documentation will be submitted by 19 October 2011. “Until now there are 16 investors having PQ documentation,” he said.

The fifth project is US$4 billion toll road project. In this project, investors had proposed their offering.

Next, Surabaya Solid Waste (US$100 million), the PQ documentation had been submitted and there are four shortlisted companies as the bidders. “This project is directly handled by provincial government of Surabaya,” he said.

Another project is Southern Bali Water Supply (US$43.5 million), a Korea based consortium has submitted its bidding to Bali provincial government.

The eight project happens to be Bandung Solid Waste (US$100 million), handled directly by Bandung provinicial government and the pre qualification phase will be conducted by the upcoming October.

The ninth project is Kalibaru Port, costing IDR11 trillion. It happens to be an unsolicited project and operated by Pelindo II.

Next is Sampah Solo project, valuing US$30 million and has been completed Feasibility Study and will enter transaction phase.

The eleventh project is Batam Solid Waste, valuing US$100 million. This project will undergo second bidding process as it had experienced a bidding process previously yet the private company failed to complete the project and finally resigned. “Thus, it will undertake second bidding.”

Besides, we are also informed that there will be intermediate transfer facility (ITF) in Jakarta. This facility will be used as final waste container. This project will be auctioned by October,” he resumed.

Government to hold bid towards 17 infrastructure projects, valuing IDR89 trillion – Bisnis.com.