Lapindo mud flood handling needs additional cost of Rp 4 trillion

Additional funds of about Rp 4 trillion will be needed for the reconstruction of infrastructure facilities damaged by the massive mud flows from Banjar Panji-1 exploration well in Brantas block, East Java.

Basuki Hadimoeljono, head of the team for the handling of the Lapindo mud floods, said in Jakarta on Tuesday that about Rp 700 billion of the total funds would be needed to rebuild a toll road, Rp 300 billion for the public road, Rp 450 billion for railway, Rp 45 billion for drinking water pipeline and Rp 300 billion for gas pipeline and another Rp 600 billion for land compensation.

?Roughly, it will need funds of between Rp 3 trillion and 4 trillion. The value excludes the initial needed funds of Rp 3.8 trillion?, Basuki said.

Basuki said that out of the initial funds of Rp 3.8 trillion needed for handling the Lapindo mud flow problem, Rp 1 trillion has been paid in accordance with Presidential Decree issued on December 28, 2006 and Rp 1.3 trillion would have to be spent for January - March period.

Separately, the general manager of Lapindo Brantas Imam Agustino said that the company remained committed to paying the remainder of the Rp 3.8 trillion decided under the Presidential Decree.

"We are committed to paying the compensation cost set under the Presidential Decree. We are still negotiating the land compensation with residents," he said. (godang)