May 6, 2008
Tj. Priok toll road in need of more funds
Jakarta Governor Fauzi Bowo said Monday he had ordered the company responsible for land acquisition in the Tanjung Priok toll road project to secure its own funding.
"It (the company) does not have to depend on the city budget. There are other ways of solving money-related issues," he said at City Hall.
"Please, do brainstorm. I, as a governor, will help expedite all required licenses if they ask me to."
City-owned property firm PT Jakarta Propertindo (JakPro), in charge of securing funding for land acquisition in the project, earlier said the work could not run at the maximum speed and might face financial hurdles after the city spatial planning agency had changed the proposed route.
"In the initial design, the toll road was to pass through land where there were no utility networks," JakPro spokesman Suryadi told The Jakarta Post recently.
"But in the latest design, which has been modified by the city spatial planning agency, there are utility networks such as electricity pipes and (state oil and gas firm) Pertamina pipes buried in the area of the toll road," he said.
Consequently, he said, the company might need more money to acquire the land.
Suryadi said the company had Rp 150 billion (US$16.25 million) in government capital.
That money was allocated last year to acquire about 27-30 hectares of land, he said.
But, he added, a 2006 survey said the land would cost Rp 350 billion.
"We may now need more money as years have passed and underground utilities will result in more costly land acquisition," said Suryadi.
Suryadi said JakPro was studying legal documents to determine whether the company or the owners of the underground utilities should spend the money to relocate those networks.
He said JakPro had spent less than 1 percent of the allocated money, but was already discussing how to raise more.
A joint project between the central government and the city administration, the toll road is expected to cost Rp 4 trillion.
The toll road will connect Jl. Raya Cakung-Cilincing, Jl. Yos Sudarso and Ancol to Tanjung Priok port, all in North Jakarta.
The road will also connect with an existing toll road heading to Soekarno-Hatta International Airport.
Suryadi said the toll road will consequently enable containers to spend only one hour of traveling from Jl. Raya Cakung-Cilincing, where many industries are situated, to Tanjung Priok port.
"Currently, it takes four to six hours for containers to travel the route," he said.
"The toll road will definitely benefit containers carrying goods as they account for 30 percent of 60,000 vehicles that use the route everyday." (The Jakarta Post)
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