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13 Investors Interested in Pare-Pare Makassar Railway Project

Jakarta -Secretary General of the Ministry of Transportation Sugihardjo said there are 11 to 13 investors interested in the Pare-Pare Railway project, Makassar.

“Apparently the Makassar said Pare-Pare project is a lot of buyers, it’s a bit of a suprise, if there is no one there are 11 or 13 who are interested in investing, there are 4 private companies that are interested,” said Sugihardjo, without mentioning the names of the investors , in Kemenhub, Jakarta, Tuesday (3/4/2018).

In the project, Kemenhub assisted by PT. Indonesia Infrastructure Guarantee (PII) for the project to be auctioned in the eyes of investors.

“We are assisted by PII in making outline, business, case (OBC) .Of OBC has been created, then we ask to enter in public dialogue, we test public, and also market sounding or market test,” he said.

Meanwhile, Director General of Railways at Kemenhub Zulfikri said the auction will be conducted in October this year.

“Yesterday we happened on 19 [March] to do market sounding for Makassar – Parepare, we offer for some private investment,” said Zulfikri in Jiexpo Kemayoran, Thursday (22/3).

Zulfikri explained later that the project will use the KPBU scheme of appropriate availability payment with an estimated AP value of Rp300 billion per year with a concession period of 20 years.

The availability payment scheme is chosen because it is considered quite attractive for investors.

In this case, the part that will be worked out by the private sector through the KPBU scheme is a railway infrastructure that includes railway lines, railway stations and railway operations facilities.

As for means such as signaling equipment, electrical installations, and telecommunications equipment, will not be tendered in October tomorrow.

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Written by DI

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