Central Kalimantan railway tender starts this November

The government recently stated it will start the tender document submission process for the US$2.2 billion worth of public private partnership railway project connecting Puruk Cahu-Bangkuang-Batanjung, Central Kalimantan in November this year after the scheduled completion of proposal request this coming September, Bisnis Indonesia reported Wednesday.

Four consortiums enrolling the tender are Itochu Toll Consortium; Drydocks World LLC-PT MAP Resources Indonesia Consortium; PT Bakrie-SNCLwalin Thyssencrupp Consortium; and China Railway Group Limited?PT Mega Guna Ganda Semesta - PT Royal Energi Consortium, in which the signing of the tender for the tender winning contract will be done on the first quarter of 2013 with tender winner obliged to comply with financial close on November so project construction could start at the end of 2013.

"The project should be able to start this December, with around three years of construction period," said Deputy Division of Infrastructure of Bappenas Dedy S Priatna, adding that a commitment deal with Central Kalimantan miners to utilise the railway once completed has been signed.

Dedy also said that there's the possibility of increasing investment value from the previously estimated US$2.2 billion to US$2.5 billion due to route changing, in which it could reach US$3 billion if tender participants also offer to provide the train units.

The railway length will range between 185km to 400km of rail stretch connecting five regencies that include Murung Raya, Barito Utara, Barito Selatan, Barito Timur, and Kapuas. It will be able to increase coal transport tonnage from 5 million tons per year to 30 million tons per year.

The government said it will not provide viability gap fund for the project, but will still provide guarantee through PT Penjaminan lnfrastruktur Indonesia (PII). (*)