C. Kalimantan invites investors to build freight railway system

The Central Kalimantan administration publicly announced its plans to develop a coal freight rail system from Lakutan to a planned barging point at Mangkatip, located at the lower Barito River, to scale up the province?s coal mining industry.

The announcement, posted at The Jakarta Post newspaper said that the administration has developed a package of commercial incentives for the miners making an early commitment to the project.

?Since the coal mining companies in the region would be the users / customers of the planned project, the Central Kalimantan administration strongly believes that constructive participation by miners in this project is essential to its success,? the announcement said.

It said that to be a qualifying miner, a miner must hold a valid license and clean and clear coal mining concession issued by the Ministry of Energy and Natural Resources (MEMR).

The initial set of draft key documents will include:
1. Project Description: a summary of the project, its background, proposed rail alignment, and way forward;
2. Third Party Haulage & Pricing Regime: a summary of the third party haulage and pricing regime under which all qualifying miners will be entitled to have their coal hauled on the railway; the principles on which miners will receive discounts on freight charges for early commitments to haulage capacity on the railway; amongst other details
3. Simulated pricing example: worked example showing how the freight charges will be calculated;
4. Miners? Equity Options: the principles and qualifications for miners to acquire equity in the project;
5. Standard Coal Transport Agreement; and
6. Extracts of proposed coal transport policy, (collectively, the ?Miners? Documents?).

Any interested qualifying miner could contact
1. Mr Imam Wardany, Provincial Government of Central Kalimantan, lmam.wardany@gmail.com, Fax: +62 536 322 2217/ 322 4910. Tel: +62 536 322 1715;

And
2. Mr Mahdi Manfaluthi, Indonesia Infrastructure Guarantee Fund, m.mahdi@iigf.co.id Fax: +62 21 5795 0040, Tel: +62 21 5795 0550 ext 168.(*)