Gov't in Hurry to Fix LRT Financing by December
Jakarta. The government is racing against time to prepare documents allowing state-owned construction company Adhi Karya to obtain the funding it needs to finish the light rail transit project in the greater Jakarta area.
The company has been shouldering the bulk of the Rp 22 trillion ($1.62 billion) elevated track connecting Cawang in East Jakarta to several outskirt towns since 2015, after the government decided not to finance it from the state budget.
Several banks, including Bank Central Asia, Indonesia's largest bank by market capitalization, and CIMB Niaga, the fifth largest, are lining up to offer loans to Adhi, Transportation Minister Budi Karya Sumadi said on Wednesday (01/10).
However, to introduce a new financing scheme the government has to first revise the company's track concession.
"We need to complete all financial closing procedures in December," said Emma Sri Martini, president director of Sarana Multi Infrastruktur, the LRT project's guarantor.
The government, Adhi and the lenders will need to agree on capital expenditure, concessions and subsidies for LRT tickets.
According to Emma, it is likely the project will swell by up to Rp 1.6 trillion, because the government wants to add two more train stations and upgrade the signaling system to accommodate more trips.
The government now estimates the total cost of the LRT project will reach Rp 27 trillion, with Rp 3 trillion for trains and maintenance.
Adhi Karya and state railway operator Kereta Api Indonesia will team up to provide Rp 8 trillion, while the remainder will come from a syndicated bank loan.
The first, 43.3-kilometer long stage of the development will include four stations along the Cawang—Cibubur line, seven stations on the Cawang—Kuningan—Dukuh Atas line and five stations on the Cawang—East Bekasi line. The government expects it to be ready for the 2018 Asian Games.
The second phase — connecting Cawang to Bogor and possibly to Lippo Group's new city development Meikarta in Cikarang, West Java — will start next year.
The Jakarta Globe is affiliated with the Lippo Group.
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