Friday, January 8, 2010

Feasibility study to start for hi-speed rail project

Yuli Tri Suwarni , The Jakarta Post , Bandung Fri, 01/08/2010 8:13 PM National

A consortium comprising of almost 20 companies for the Hydrogen Hi-Speed Rail Super Highway (H2RSH) project is scheduled to start its feasibility study on Jan. 11, 2010, involving transportation experts from the Bandung Institute of Technology (ITB).

West Java Regional Investment Coordinating Agency (BKPMD) chief Iwa Karniwa said the feasibility study was needed to finalize the plan for the US$3 billion project scheduled for realization in two years time.

“We have to vigorously move forward because the investors’ are enthusiastic to realize the project and consider the positive impact of the project on economic development,” Iwa told The Jakarta Post on Friday.

The H2RSH project, he said, would cover a corridor of 357 kilometers from Cirebon, West Java, to Soekarno-Hatta Airport in Tangerang, Banten. He said, the trip would only take some 1.5 hours.

Iwa expressed confidence that the project, 80 percent located in West Java region and the rest Greater Jakarta and Banten province, would not “consume” much land as it would be like a monorail and operate above ground.

(Note: In the Malaysian Peninsula, the double tracking project from Ipoh to the Thai border costs about USD3.5b. With the same amount of money, a high speed rail link could be built between KL and Singapore, bringing the two commercial capitals with combined population of about 10 millions closer together, but wiser people thought otherwise - blogger)

Adhi Karya secures Rp 9t of contracts

Nani Afrida , The Jakarta Post , Jakarta Thu, 01/07/2010 10:36 AM Business

State construction firm PT Adhi Karya has secured Rp 9.06 trillion (US$978.4 million=RM3.5b) of infrastructure contracts this year, excluding those gained in 2009 that will still be carried over to 2010.

“The contracts may amount to more than Rp 9.06 trillion since we are still calculating what is left from the 2009 budget to be carried over this year,” Adhi Karya (AK) corporate secretary Kurnadi Gularso told journalists at the office of the State SOE Ministry in Jakarta on Wednesday.

Last year the company secured Rp 14 trillion worth of contracts, including from the 2008 budget.

Just like previous years, the government has dominated AK’s contracts. However, Kurnadi revealed that this year the private sectors proportion had increased by 5 percent compared to the previous year.

“This year, Adhi Karya’s contracts are about 75 percent from the government, while 25 percent is private,” Kurnadi said, adding that last year the company got 80 percent of contracts from the government.

The company is targeting to net about Rp 8.6 trillion in revenue this year and Rp 694 billion (RM290m) in gross profits. Last year the company estimated to gain Rp 7.52 trillion in revenue and Rp 463 billion in gross profits.

“We aim to get Rp 140 billion in net profits this year, which is higher than the Rp 120 billion targeted in 2009,” Kurnadi said.

According to Kurnadi, government engineering, procurement and construction contracts (EPC) will contribute 63 percent of AK revenue, while private infrastructure will contribute about 37 percent.

Adhi Karya, a state construction firm has expanded its business overseas, including to the Middle East.

Last year the firm completed a 35-floor apartment building at Al-Burj in Dubai, the site of the world’s highest tower complex.

Kurnadi said that in 2010 the company would focus on infrastructure projects in Oman and Qatar.

“There is a project in Oman. We will build a mixed-use complex called Tilal Complex El Khuwair. The complex contains apartments, a hotel and mall,” he said, adding the project would spend about Rp 969 billion to be spent this year.

AK has an infrastructure project in Qatar worth Rp 684 billion.

Kurnadi acknowledged that Adhi Karya was still struggling to resolve the dispute with Al Habtoor Engineering, the Dubai-based contractor working in Qatar. Adhi Karya was the partner of Al Habtoor in a $75 million five-star, three-tower hotel construction project.

The dispute started in 2008 when Al Habtoor reportedly cut the amount of its regular payments to Adhi Karya for the Shangri-La Hotel project. Adhi Karya then refused to continue working on schedule arguing payments should be as previously agreed.

Wednesday, January 6, 2010

New firm to guarantee state projects

New firm to guarantee state projects
Dicky Christanto , The Jakarta Post , Jakarta Tue, 01/05/2010 10:33 PM Business

The government has set up a company to provide financial guarantees to so that firms can access credit to finance infrastructure projects, requiring Rp 1,923.7 trillion (US$207.76 billion) in the next five years.

The company, named PT. Penjaminan Infrastruktur Indonesia (PII), is to help private sector firms working on infrastructure projects backed by public private partnerships by giving guarantees to increase their creditworthiness, Arif Baharudin, a director at the Finance Ministry said in a statement.

The government has injected Rp 1 trillion from the 2009 budget to PII to provide initial capital, making the firm 100 percent state-owned.“Additional capital is expected to be provided in the coming years,” Arif said.

He also said that the World Bank had pledged to disburse up to Rp 1.5 trillion in soft loans to support PII.

The government expects to be able in five years to spend Rp 768 trillion from state funds to finance upcoming infrastructure projects, while the rest is expected to come from private firms.

Monday, January 4, 2010

RM13 billion 'Space City' near Seremban

Monday January 4, 2010

SEREMBAN: A “Space City” project costing up to RM13bil, to be financed by a Dubai-based private pension fund from India, is set to take shape near here as early as the end of this year.

The project will be similar, although not in size, cost and lavishness, to Abu Dhabi’s RM750bil Space City project that will be built over the next 10 years.

The local Space City project will be built on 400ha near Bandar Sri Sendayan-Bandar Enstek near here, and close to the KL International Airport, Putrajaya, Cyberjaya and the Education Ministry’s RM1.2bil complex which will house several institutes and universities, according to Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan in an interview.

“The ultra modern project will take shape in phases over 15 years ... among the tallest structures under the first phase will be a skyscraper over 40 storeys high which will be the tallest building in the state,” he said.

“It is going to be built on a totally new concept and will be the nation’s most modern city. It is something that you don’t see anywhere else here,” he said, adding that the memorandum of understanding for the project would be inked in the middle of this year.

He said the pension fund has agreed to the terms and conditions to buy the land from Mentri Besar Inc.

“We have negotiated a deal and everything is in order. In fact the investors were here recently for a due diligence and they were extremely happy with the way the project will be carried out,” he said, adding that the state government did not give the pension fund any incentives for the purchase of the property.

The project, Mohamad said, would not be carried out on a joint venture basis between MBI and the pension fund.

“We only sold them the land based on set conditions and they will be bringing the cash from abroad to finance it. We would not be forking out any cash for the project,” he said.

Mohamad said he had also been briefed by the project’s London-based architects and US-based town planners on details of the project during a visit abroad recently.

He added that the Space City would also house the Formula One City where competing teams would be able to set up their research and development (R&D) and other facilities.

“They would no longer have to stay in Kuala Lumpur when they come here for the race. It can be taxing to have to commute between both points during the race, what more with the congestion in the federal capital,” he said.

At present, these teams use helicopters to ferry their officials from Kuala Lumpur to the F1 track in Sepang.

The first phase of the project would be a mixed development with residential and commercial properties.

“The residential properties would cost more than RM500,000 and locals would be encouraged to invest here. In fact, the developers would also be allowed to sell these properties to foreigners,” Mohamad said.

“What is certain is that the Space City project would help boost the property market here. In fact the former 513 Felda LBJ settlers who became millionaires after they sold their properties would be able to make a lot more if they decide to dispose of the 0.8ha we gave each family,” he added.

The mentri besar said the Space City project would be carried out at the same time as Sime Darby’s Central Vision Valley (CVV) project located some 8 km away.

The CVV project will be carried out on 3,000ha, comprising mixed development, sports and educational institutions.

Mohamad said the proceeds to be raised from the sale of the 400ha would be used by the state government to repay loans taken from the federal government and the Pensions Trust Fund, some of which would mature this year.

(RM13b, 400ha / 15 years = about RM900m, 27ha/yr.

About Me

A seeker of success (whatever that means) treading on a path, searching, to return to the wholesomeness that was him when he was launched into this big school called Earth.