Another crackpot plan in Jakarta

Quote:

Construction of Jakarta MRT to start in 2010
Tuesday, August 21, 2007

Mustaqim Adamrah, The Jakarta Post, Jakarta

The central government and the city administration will start work in 2010 on an ambitious project to develop a Mass Rapid Transit (MRT) system for Jakarta, the Transportation Ministry said Monday.

Unveiling the time schedule for the project Monday, Transportation Ministry secretary general Wendy Aritenang, the chairman of the MRT steering committee, said construction was expected to complete by the end of 2014.

The MRT development, which is projected to swallow more than Rp 8.3 trillion ($902 million) in investment, will stretch 14.3 kilometers from Lebak Bulus in South Jakarta to Dukuh Atas in Central Jakarta.

The project would use soft loans from the Japan Bank for International Cooperation.

"This project will eventually integrate with other transportation modes, such as Jakarta's busway, monorail and waterway (taxi)," said steering committee vice chairman Fauzi Bowo, the incumbent Jakarta Deputy Governor and winner of the recent city gubernatorial election.

"Moreover, the project will automatically place Jakarta alongside modern cities such as Hong Kong, New Delhi, Bangkok, Seoul, Tokyo and Singapore."

The administration is also planning a US$480 million monorail project, the financing for which is still being negotiated with a local banking consortium. The monorail project is expected to be complete by 2010.

The administration also plans to build three new busway corridors by the end of this year, adding to the existing seven corridors, and reaching toward the planned total of 15.

Prospects have looked less bright for the waterway system, with low water levels caused by drought and solid waste forcing the administration to suspend water taxi services.

The "about to be" governor of Jakarta Fauzi Bowow is really barking up the wrong tree with this one. I just love this line.

Quote:

"Moreover, the project will automatically place Jakarta alongside modern cities such as Hong Kong, New Delhi, Bangkok, Seoul, Tokyo and Singapore."

The monorail mentioned above was started about four years ago and so far is nothing more than a bunch of 30cm concrete pillars with 3 meters of reinforcing steel sticking up in the air along a feww km of Jakarta's main roads.

paul_indo

Quote:

Lawyer sues monorail developer for back pay

The Jakarta Post, Jakarta

Jakartans may now have to wait even longer before they can enjoy riding the elevated monorail.

Adi Prasetyo & Partners, former legal advisor for the project developer consortium PT Jakarta Monorail, has requested the Commerce Court of Jakarta declare the company bankrupt.

The firm, represented by lawyer Octolin H. Hutagalung, said after an initial hearing at the Jakarta district court Wednesday, that Jakarta Monorail owed approximately Rp 2.247 billion (US$239,510) and US$872,750 separately.

"Jakarta Monorail has only paid our client Rp 40 million to date... (and has) claimed our client was not qualified for the work" he said.

"That excuse doesn't make sense. Why would the consortium continue employing our client if it considered them to be unprofessional?"

Octolin said the Jakarta Monorail first hired law firm Adi Prasetyo & Partners in April 2005 for legal advice on the development of the monorail project. The company paid the firm Rp 40 million of the initial Rp 120 million contract fee.

The developer went on to sign two additional contracts in September 2005 and March 2006, valued at Rp 1.1 billion and $150,000, respectively, but has paid neither.

The monorail project, which began in 2004, has been stopped and started due to a shortfall in the finance needed for the estimated US$650 million design.

Which investors will now actually be paying for the project remains confidential. In July, a local bank consortium comprising Bank Rakyat Indonesia, Bank Mandiri and Bank DKI agreed to finance the plans.

Governor Sutiyoso told the consortium in June that the city administration would replace the company if it could not find money for the project by October.

JM director Sukmawati Syukur told The Jakarta Post on Wednesday, that the company did not want to pay the law firm.

"Firstly, our agreement states that the consortium will pay the firm only once we have reached financial closing,

Secondly, we have recently been lead to believe that our former lawyer, Gusnelia Tartiningsih, from Adi Prasetyo & Partners, does not have a license to practice".

Sukmawati said that Gusnelia would be paid the agreed amount when JM had reached financial closing

"We suffered losses because of (Gusnelia's) faulty legal advice. She should deduct our debts (from her fee)," she said.

Despite the dispute between the company and the law firm, consortium member PT Adhi Karya will continue to increase its stake in the monorail project from 7.65 percent to 21.83 percent.

"Jakarta Monorail will issue new shares. Adhi Karya will purchase 250,000 shares worth $100 each," Adhi Karya's corporate secretary Kurnardi Gularso said as quoted by Antara news agency.

He added that his company would pay $25 million for the new shares once the monorail has obtained a guarantee from a financial institution.

"We will pay the money in two phases: $15 million and $10 million each," he said. (0 Cool

Uh Oh....

The monorail project has gone bankrupt. Laughing

What hope for the MRT