Bisnis.com confirms that the Minister for State-Owned Enterprises will allocate Rp. 1.9 trillion (US$211 million) for the expansion and upgrading of Bali's Ngurah Rai Airport, racing against a deadline to have the work completed before the major APEC leadership conference to be held in Bali in 2013.
To meet that requirement, airport managers and contractors are aiming to complete the project by March 2013.
The funding for the upgrade will come from internal funding of the airport's management company PT Angkasa Pura II and from bank loans.
Meanwhile, Firmansyah Rahim, Director General of Destination Development from the Ministry of Culture and Tourism, told the press how the government is working to overcome traffic congestion in Bali with the establishment of an island-wide rail system. Firmansyah is hopeful that the rail system – a joint project between the Indonesian rail company PT Kereta Api Indonesia, the Ministry of Transportation, Ministry of Culture and Tourism and the Provincial Government of Bali – will begin construction in 2011.
An initial memorandum of understanding (mou) has been signed by the cooperating agencies for a project intended to create a both a new tourism attraction for Bali and stimulate a more equitable distribution of tourists to all areas across Bali.
An expanded and improved air gateway from Bali, operating eventually in tandem with a Bali train system, will offer a progressive inter-modality of transportation options with the potential of reducing Bali's worsening traffic situation.
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