Minister wants PTBA to seek new partner in railway project
Saturday, March 13 2010 - 02:14 AM WIB
Mustafa said in Jakarta on Friday that the railway project had been delayed due to uncertainties in PTBA?s cooperation with its partners in developing the railway project.
?The cooperation between PTBA and its partners Transpacific Group, China Railway Engineering and Group expires at the end of April,? he said, adding that if the joint venture was still unable to begin the project, it would be better for PTBA to seek a new partner in the project.
PTBA and Transpacific Group and the Chinese company had established a joint venture to develop the railway which would be built to increase the capacity of its coal transportation from its mining area in Tanjung Enim, South Sumatra to the coal shipment terminal in Tarahan, Panjang, Lampung.
Transpacific Group has an 80 percent stake in the joint venture while the Chinese company and PTBA share the remaining 20 percent stake.
Mustafa said that a foreign company had expressed interest to become PTBA?s partner in the railway project. ?The company?s executive had met me,? he added. But he did not mention the name of the company.
PTBA estimates that investment for the construction of the railway project might swell to US$1.3 billion from $1.08 billion as initially planned partly due to increase in steel prices. (*)