An aerial view of the Soreang-Pasir Koja Toll Road in Bandung, West Java. (Antara Photo/Raisan Al Farisi)
CMNP, Wika Ink $1.4b Jakarta, Bandung Toll Road Expansion Deals
OCTOBER 14, 2018
Nusa Dua. Citra Marga Nusaphala Persada and state-owned contractor Wijaya Karya signed deals worth Rp 21.5 trillion ($1.4 billion) on Saturday for the construction of two toll road sections – one in Jakarta and the other in Bandung, West Java.
The publicly listed construction firm and toll road operator, better known as CMNP, signed up its subsidiary, Girder Indonesia, and Wijaya Karya (Wika) to work on an elevated section of toll road between East Ancol and Pluit in North Jakarta. The section forms part of the Inner Ring Toll Road, operated by CMNP.
Citra Marga Lintas Jabar, co-owned by CMNP and Wika, will meanwhile work with both companies and Girder Indonesia on the North-South Link Bandung project, which involves the construction of a 14-kilometer addition to the existing Soreang-Pasir Koja Toll Road in West Java.
The deals are part of a series of agreements, facilitated by the Center for Private Investment at the National Development Planning Agency (Bappenas), and signed on the sidelines of 2018 International Monetary Fund and World Bank Annual Meetings in Nusa Dua, Bali.
The Center for Private Investment helps with coordination between government agencies and financing institutions, especially to iron out licensing, land clearing and permit problems during the project preparation stage. Projects promoted by the center are usually investment ready.
Other deals signed on Saturday include a Rp 290 billion investment by publicly listed infrastructure firm Nusantara Infrastruktur in a biomass power plant in North Kalimantan.
A consortium comprised of construction firm Daya Mulia Turangga, the Gama Group and state-owned builder Adhi Karya, also signed a memorandum of understanding with the center on Saturday to facilitate financing for its 92-kilometer toll road project linking Solo in Central Java with Yogyakarta and New Yogyakarta International Airport. The project requires funding of Rp 22.5 trillion.