Bengkulu, six firms sign MoU on coal railway project

By Godang Sitompul

The Bengkulu provincial administration on Wednesday signed an MoU with a consortium of six companies to develop a 230 km railway linking the province and neighboring South Sumatra province.

?The six companies signed the MoU yesterday,? Head of the Bengkulu mining office M. Ikhwan told Petromindo.com Thursday. ?The plan is to use the railway for coal transport, but I?m not really sure,? he added.

Kompas.com reported that the consortium is led by PT Mandela Resources, with members including PT Hanwha S&C (as contractor), PT Dohwa Engineering (responsible for contruction enegineering), PT Bara Alam Utama (user of the railway to transport coal), PT True North Bridge (financial consultant) dan PT Coalindo Adhi Nusantara (coal marketing).

Mandela Resources President Director Joko Sudibyo said that the project is classified as private public partnership scheme, which means that the government will be responsible in securing the necessary land for the infrastructure project.

Editing by Reiner Simanjuntak