Govt to open tender to develop C. Kalimantan coal railway
Saturday, September 12 2009 - 01:30 AM WIB
Central Kalimantan Governor Teras Narang said PQ document will be available throughout mid-September to mid-October, with bid submission scheduled in November. PQ result will be announced in December with winner is expected to be picked in May 2010, he said.
Developer will develop 158 km railway from Puruk Cahu to Bangkuang unloading point where coal will be barged to Java Sea, Narang said in Jakarta during a pre-market sounding.
Narang said total cost to develop the project is around US$1.5 billion, with start-up seen three years after winner?s appointment.
The railway will be able to transport 10 MTPA of coal in the first 10 years and will double afterward.
The project was based on pre-FS by Japanese consultant, saying that the project is economically and environmentally viable, he said, adding that the provincial government will fully support investor in permitting and land acquisition.
Narang said at least 15 miners will use the railway service to transport their coal including Marunda Graha Mineral, Asmin Coalindo Tuhup, Kalteng Coal, Suprabari Mapanindo Mineral, Multi Tambang Jaya Utama.
Investor will be given right to operate the railway for 30 years, he said, adding that government may directly appoint winner if the number of bidders are less than three.
The project is the first phase of government?s plan to build railway network in Kalimantan to transport commodities such as coal and crude palm oil. (denny)