ASEAN KEY DESTINATIONS
Govt to offer weighbridge revitalization projects worth Rp 330.66b
The Transportation Ministry has started to sound six weighbridge revitalization projects worth Rp 330.66 billion (US$22.72 million) in Java and Sumatra to the private sector in a bid to prolong the lifespan of roads on the country’s two major islands.
The ministry held a market sounding event at the Coordinating Investment Board (BKPM) recently, which was attended by representatives of several major companies such as PT Astra, PT Penta-Ocean Construction, PT Nindya Karya, Mitsubishi Corporation, PT Jababeka Infrastructure and the Korea Trade-Investment Promotion Agency (KOTRA).
Three of the six weighbridges to be revitalized are in Sumatra -- Muara Tembesi in Jambi, Merapi in South Sumatra and Blambangan Umpu in Lampung -- and the other three are in Java -- Tanjung and Subah in Central Java and Guyangan in East Java.
“We invite the private sector to take part in our pilot projects, which will be offered in a public-private partnership (PPP) scheme,” Chandra Irawan, the Transportation Ministry’s land infrastructure director, said during the event.
The Transportation Ministry will issue a 15-year contract for companies that win the projects, Chandra said, adding that any investor would be required to design, finance, build and maintain the weighbridges for the period of time in accordance with the existing regulation.
Through state-owned infrastructure financing guarantee company PT Penjaminan Infrastruktur Indonesia (PII), the Transportation Ministry would give guarantees for investors in the six projects that their fund will save, he said.
Chandra said under the scheme, the private sector was expected to help the government improve road user safety, maintain roads in good condition and eradicate corrupt practices in the operation of weighbridges.
Data from the Public Works and Housing Ministry show that the government has to spend Rp 43 trillion (US$2.95 billion) annually to repair roads because of overloaded and oversized trucks.
Chandra said the ministry was in the process of checking the condition if the six weighbridges, while the projects were being sounded. “The tender prequalification will be held in the middle of next year,” he added.
Ikmal Lukman, the BKPM's deputy chief for investment planning, said the government would spend less money if the projects were funded through a PPP scheme. “With a PPP scheme, the government will spend Rp 55.38 million per year within 15 years as the concession duration,” Ikmal said referring to the Rp 330.66 billion projects.
PPP schemes are currently also being implemented in other Transportation Ministry projects such as airports, seaports, railways and jetties.
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