Three projects to be tendered in Jakarta

Indonesia is set to launch three transportation PPPs of significant size, including large monorail projects.

The tendering of three transportation projects will be launched tomorrow in the Indonesian capital, only two weeks after pro-infrastructure Indonesian President, Joko Widodo, was officially inaugurated.

Widodo sparked an infrastructure debate during his campaign, with promises of ten new airports and 2,000 kilometers (km) of road infrastructure.

To kick-start connectivity development, the President has chosen to put out to tender three fast-transit transportation systems to unlock key areas of growth in the country, with the Soekarno-Hatta International Airport Railway, the development of the South Sumatra monorail and Bandung monorail in West Java, all to be run as public-private partnerships (PPP).

The airport railway will link Banten, the westernmost province of the island of Java to the Jakarta province all the way to the airport 20km north of the capital, lightening traffic on the single highway currently connecting the world’s ninth-busiest airport. No details have yet been published by BKPM, Indonesia’s investment coordinating board. The implementing agency is the Bandung Municipal Transportation Agency.

Pre-qualification and bidding/evaluation are expected to happen respectively by H1 2015 and H2 2015, with the contract to be awarded in H2 2016.

The South Sumatra Monorail, which will follow the same timeline as the airport railway, aims to develop the province’s transportation network through an integrated system to reinforce the existing air and land transportation system in the area. It has an estimated cost of $550 million, with an indicative debt to equity ratio of 70 to 30. Implementing agencies are UPTD Railway Transportation Agency South Sumatra and the Public Works Agency, South Sumatra Province.

The Bandung Monorail project, worth $2.9 billion, is aimed at easing congestion in four growing districts of Bandung, the country’s third-largest city and capital of its Java West province.

Market sources indicate that Korean and Japanese firms have already shown interest in the projects.