Questions and delays afflict some key Indonesian transport project

Indonesia’s transport expansion programme is seeing new projects commence, but others afflicted by questions over feasibility and delays. Questions over the economic feasibility of the proposed Sunda Strait Bridge project have been raised by the Public Works Ministry. This mega-project is intended to provide a road link between Sumatra and Java. But construction of the 30km structure could cost up to US$23 billion and might not be fully recovered, even if the investor collects toll fees under a 100-year con
March 28, 2014 Read time: 2 mins
Indonesia’s transport expansion programme is seeing new projects commence, but others afflicted by questions over feasibility and delays. Questions over the economic feasibility of the proposed Sunda Strait Bridge project have been raised by the Public Works Ministry. This mega-project is intended to provide a road link between Sumatra and Java. But construction of the 30km structure could cost up to US$23 billion and might not be fully recovered, even if the investor collects toll fees under a 100-year concession and adds railway track as well as pipelines along the bridge.

Delays will hit construction of the anticipated Trans-Sumatra tolled road project and it now looks unlikely that work will commence in 2014, according to the Public Works Ministry. Land acquisition is one of the issues affecting the schedule, while state-owned construction firm 5206 Hutama Karya has yet to receive an official appointment to develop the project. The US$1.31 billion toll road will run for some 2,700km in Sumatra between Aceh and Lampung.

According to the Public Works Ministry, the country’s toll road network has increased only by 300km in the last 10 years and now total just 918km. An annual increase of only 30km. Out of the total increase of 918km, 880km has been constructed by the private sector while the government has built only 38km. The total length of the national road network is now is around 38,400km, up 4,400km from 10 years ago. One of the main difficulties faced by toll road construction is land acquisition.

4911 Citra Marga Nusaphala Persada plans to carry out the groundbreaking for the Depok-Antasari Toll in the fourth week of April 2014. The development of the 22km road is costing some $416.53 million but has also been hit by land acquisition problems since it was first planned in 2003. And a new 2.5km elevated toll road section worth $26.2 million will be built by Marga Mandala Sakti (MMS). Work on the project will start by the end of 2014, next to the existing Tangerang-Merak toll road in Banten, which is operated by MMS. The new road will be built as the existing Tangerang-Merak stretch is prone to flooding.
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