Govt to Offer Seven Toll Road Projects Worth Rp 151.15 Trillion
Date 22 Juli 2019
Ministry of Public Works and Public Housing through the Toll Road Regulatory Agency (BPJT) this year is set to offer tender for seven toll road sections with an overall investment value of Rp151.13 trillion.
Head of the BPJT Danang Parikesit stated that the sections to be offered for the tender are Semanan – Balaraja Toll Road (31.9 Km), Kamal – Teluknaga – Rajeg Toll Road (38.6 Km), Patimban Port Access Toll Road (37.7 Km), Gedebage – Tasikmalaya – Cilacap Toll Road (184 Km), Yogyakarta – Bawen Toll Road (77 Km), Solo – Yogyakarta – New Yogyakarta International Airport (NYIA) Kulon Progo Toll Road (91.93 Km) and Balikpapan – Penajam Paser Utara Toll Road (7.35 Km).
Out of the seven sections, Balikpapan – Penajam Paser Utara Toll Road is put for tender through a right to match scheme held by PT Tol Teluk Balikpapan. The other sections are in the phase of design finalization,” Danang said.
The involvement of the private sector through Public-Private Partnership (PPP) scheme, Danang said, will affect the leverage of investment so profits can be used for other infrastructure development.
For the record, the 2020-2024 State Budget is projected to only be able to meet 30% or approximately Rp623 trillion of the total budget required for infrastructure development (Rp2.058 trillion). Therefore, private sector investment is needed for the development to run smoothly.
The Government has also provided Viability Gap Fund (VGF) in the form of the State Budget funding support and guarantee for some parts of toll road construction, thereby increasing the toll road’s financial feasibility.
Minister of Public Works and Public Housing Basuki Hadimuljono has previously stated that toll road development is needed to improve connectivity between regions and reduce logistics costs.
“Through the PPP scheme, the Government aims to overcome financial gap in infrastructure, especially toll roads, so roads can be completed on schedule to provide real benefits for the state and the people,” Basuki stated. (BKP Kementerian PUPR/ES)
Translated by : Fairuzzamani Inayatillah
Edited by : Rany A. Subachrum, M. Ersan Pamungkas