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You Take the High Road

Benoa ľNusa Dua Toll Way to Commence Construction in Bali on December 21, 2011

(12/2/2011) The toll way connecting Benoa Harbor and Nusa Dua is scheduled to commence construction on December 21, 2011, with the project expected to be completed within 12 months thereafter.

The elevated toll road traveling over protected mangrove forests will stretch 11 kilometers Sanur and Nusa Dua, expected to substantially reduce travel time and traffic bottlenecks surrounding Bali’s airport.

Bisnis Bali quotes the Ministry for State-Owned Enterprises (BUMN) as asserting that the cost of the project will be borne by a consortium of state-owned companies and, as result, will not place any burden of the state budget.

The Ministry for BUMN, under the leadership of Dahlan Iskan, has sought creative means to help Indonesia finance infrastructure projects.

While attending a meeting ay the Hotel Inna Putri Bali, Deputy Minister for Infrastructure and Logistics at BUMN, Sumaryanto Widayatin, praised Iskan’s, efforts for infrastructure development. Sumaryanto said the construction of the toll way in south Bali will commence on December 21, 2011 with completion expected in December of 2012. The total project will cost Rp. 2 trillion (US$222 million).

Citing the new approaches to the how the toll way project was put together, Widyatain told how a Rp. 5.5 trillion project for a land route from south Denpasar- Serangan-Benoa-Nusa Dua was initially unable to attract investors, despite two tender offers.” Finally, Jasa Marga together with a number of BUMN companies found a way to build the road with having to acquire private land at a cost of only Rp. 2 trillion and without the use of funds from the State budget. The government is seeking a bi-lateral loan from China or Korea with the construction is set to start on December 21st,” explained Widyatin.

Similarly in Jakarta an airport rail system from Manggarai-Pluit-Airport with an investment of Rp. 10.7 trillion (US$1.2 billion) is going to be achieved by using an existing rail right-of-way between Manggarai-Tangerang plus a new spur continuing on to the airport. This approach reduced the cost of the project to less than Rp. 2 trillion (US$222 million).