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Coming to an Understanding

Memorandum of Understanding Signed between Seven State-Owned Companies for Construction of Serangan to Nusa Dua Toll Way.

Bali News: Bali, Indonesia, PT Jasa Marga, PT Pelindo III, PT Angkasa Pura I, PT Bali Tourism Development Corporation, BTDC, MOU, PT Wijaya Karya, PT Adhi Karya, PT Hutama Karya. Frans S. Sunito, Hermanto Dardak, Serangan, Tanjung Benoa, Nusa Dua, Toll way, toll road
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Nusa Bali reports that seven State-owned companies signed a memorandum of understanding (MOU) declaring their intent to form a consortium to build a toll road connecting Serangan island near the Sanur area of Bali and the Tanjung area at Nusa Dua.

The four initial initiators of the project - PT Jasa Marga, PT Pelindo III, PT Angkasa Pura I and PT Bali Tourism Development Corporation (BTDC) were joined in the MOU by three more State-owned companies: PT Wijaya Karya, PT Adhi Karya and PT Hutama Karya.

The CEO of PT Jasa Marga, Frans S. Sunito told the press that if the consortium wins the government tender process, the 7 member group will form a new joint-venture with his company owning 60 percent of the shares. Frans added: "At this point we are still a consortium. The suggestion of the 7 State-owned companies has been submitted to the government. We just have to wait for agreement to form the subject consortium.

Once a green light is received from the government, the consortium will forward an investment proposal together with a financial capability statement to the government.

The Minister of Public Works, Hermanto Dardak confirmed that the proposal of the Consortium was under review by the government. In order to safeguard the transparency of the bidding process and conform with the laws, a "right to match" procedure needs to be established to allow other interested parties a chance to build the toll way.

Earlier, the government agency in charge of toll ways had declared its intent to open bidding on the Serangan – Tanjung Benoa toll way that has an estimated cost of Rp. 1.9 trillion (US$211 million). The targeted completion date for the road way is May 2011, in time for a major APEC Summit to be held later in that year.

As the initiator of the toll way project, the 7-member consortium would be given a priority in any tender process for the roadway, without barring other interested parties from joining the bidding process.

The new roadway will cut across 2.6 kilometers of Serangan island, transect the mangrove sanctuary for a distance of 2 kilometers, follow the shore line for 2.3 kilometers and cross a bridge 350 meters long.

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