Special Committee disagrees with Santa Fe on road construction

The special committee formed by the provincial council of Jambi has failed to reach an agreement with oil and gas company Santa Fe on the company's plan to construct road to support its operation in the East and West Tanjung Jabung areas.

Committee head Zainuddin ZA told Palembang-based daily Sriwijaya Post on Wednesday that the meeting between the committee and the company on Monday, which was also attended by regent of East Tanjung Jabung and representatives of the West Tanjung Jabung regency administration, ended without a conclusion.

He said the committee asked Santa Fe to allow the local administration to handle the construction of the road and give all the Rp 6 billion (US$1=Rp 8,910) fund allocated by the company for the construction of the 11.7-kilometer road to the regional administration. The local administration would put the road project into an open bidding and the construction of the road would be carried out in accordance with the standards set by the local administration.

Santa Fe would only give the total amount to the local administration gradually in line with the progress of the construction work.

The committee thus proposed Santa Fe to build the road itself in accordance with the standard set by the local administration. This was however turned down by the company.

Following the disagreement, Zainuddin said, the committee then decided to take the matter to the forum of council factions, which is expected to further study the matter and make a decision on it.

During the meeting, Zainuddin said, some councilors also blamed Sant Fe of having installed its pipeline without the consent of the local administration. (*)