JICA, Nippon Koei reported to antimonopoly commission over MRT project

Desy Nurhayati ,  The Jakarta Post ,  Jakarta   |  Wed, 06/03/2009 9:31 PM  |  Jakarta

The Indonesian Procurement Watch (IPW) filed a report Wednesday with the Business Competition Supervisory Commission (KPPU) over the city’s Mass Rapid Transit project bidding process which it claimed was unfair.

IPW’s program director Hayie Muhammad said the NGO had found an indication of conspiracy between the Japan International Cooperation Agency (JICA) as the MRT project adviser and Nippon Koei Co. Ltd. as one of the tender participants.  

He said JICA had intervened in the tender process and influenced the Transportation Ministry’s railway division to pick Nippon Koei over Katahira Engineers International, which had initially been selected by the ministry as the winner of the bid.

“We believe that JICA and Nippon Koei have conspired to oust Katahira. This may lead to unhealthy business competition, which is why we have reported this case to the KPPU,” Hayie told reporters at the antimonopoly commission’s office.

“We want the KPPU to investigate the case because the long-delayed MRT project has disadvantaged the government and the public at large. We fear this unclear tender process might delay construction for a year.”

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