T

he cost for the development of the 32.7 kilometer Manggarai-Soekarno-Hatta International Airport railway will swell to about Rp 10.2 trillion (US$1.14 billion) from the initial estimate of Rp 4.6 trillion due to an increase in price of construction materials and land, a Transportation Ministry’s official says.

The Transportation Ministry’s director general for trains Tunjung Inderawan said on Wednesday that the new budget figure was based on the results of the project revaluation carried out jointly by the Coordinating Economic Minister’s Office, National Development Planning Agency and the Committee for Infrastructure Development Policy (KKPPI).

“Based on the project revaluation, the railway project may require Rp 10.2 trillion in investment, far higher than the Rp 4.6 trillion estimated in 2007,” he said.

The spokesman for the Transportation Ministry’s director general for trains Muhartono told The Jakarta Post on Wednesday that the increase in the estimated costs of the railway project was mainly due to the increase in the price of land and construction materials.

Tundjung said that of the total Rp 10.2 trillion needed for the project, about Rp 3.2 trillion would be financed by the state budget. About Rp 1.5 trillion of the state funds would be used to finance land acquisition,” he said, adding the funds would be disbursed in three years beginning 2011.

“About Rp 450 billion will be disbursed in 2011, Rp 525 billion in 2012 and Rp 525 billion in 2013,” Tanjung said.

Tanjung said the remaining Rp 1.7 trillion of the Rp 3.2 trillion allocated by the government would be used to finance an 11-kilometer section of the railway road between Manggarai station and Muara Angke.

For the railway construction, the government will disburse Rp 680 billion in 2012 and Rp 1.02 trillion in 2013.

“The other Rp 7 trillion for the construction of the railway will be financed by investors,” he said.

Tunjung also said the Transportation Ministry would soon launch a limited tender for the development of the railway project.

According to the plan, the tender will be joined by three companies, which have already passed pre-qualification. They include PT Railink, Mitsui of Japan and China Harbour, which will take part in the tender.

The 33-kilometer railway between Manggarai railway station and the airport will have the capacity to carry 24,109 passengers a day.

The project is expected to ease traffic congestions which often block traffic from the city to the
airport.