PII pledges to guarantee coal railway project in Central Kalimantan

The government-sponsored infrastructure guarantee agency PT Penjamin Infrastruktur Indonesia (PII) has pledged to guarantee the planned construction of coal railway project valued US$2.5 billion in Central Kalimantan province.

?We commit to provide (the financial) guarantee for the project. The signing of commitment to guarantee the project would be made after the completion of auction process,? PII Vice President Adita Irawati said as quoted by Bisnis Indonesia.

The auction process was expected to be completed next year at the latest followed by the signing of guarantee commitment stipulated under the Memorandum of Understanding (MoU) also in 2012.

With the commitment, PII has provided guarantee to 10 projects under the public private partnership scheme. The guaranteed projects included among others coal-fired power plant project in Central Java, the construction of Tanah Ampo Bali port and Manggarai-Airport railway project. (*)