Bali’s Sarangan-Tanjung Benoa construction fast tracked

The government has decided to speed up the construction of several infrastructure projects, including the Sarangan–Tanjung Benoa bridge and airport renovation in Bali as well as the Sunda Strait bridge linking Java and Sumatra islands.

The decision was made during an economic coordinating meeting in Jakarta on Tuesday.

Coordinating Economic Minister Hatta Rajasa said construction of the Sarangan-Benoa bridge was considered the best solution in coping with traffic congestion in the area.

“It’s part of our preparation ahead of the APEC meeting as well as to resolve the real condition of heavy traffic in Bali. If that is not taken care of, the traffic issue could affect tourists’ interest in visiting Bali,” he told reporters after the meeting at the ministry’s offices in Jakarta.

Hatta said construction of the bridge was part of the preparation for the 2013 Asia Pacific Economic Cooperation (APEC) summit, which will be held on the resort island. 

State-Owned Enterprises Minister Mustafa Abubakar explained that the bridge, which would function as a toll road, would be 11.5 kilometers in length. The Rp 3.5 trillion project will be jointly developed by four state companies, namely toll-road operator Jasa Marga, seaport operator Pelindo III, airport operator Angkasa Pura I and the Bali Tourism Development Corporation (BTDC).

“The four state firms will jointly construct the new toll road so that it will not burden the state,” he told reporters at the same event.

The toll road will need Rp 1.6 trillion while the Ngurah Rai Airport renovation will cost the state firms Rp 1.9 trillion. “After the renovation, the domestic terminal will be used for international flights while the international terminal will be for domestic flights,” Mustafa added.

As for the proposed world’s longest suspension bridge, the 30-kilometer Sunda Strait Bridge connecting Java Island and Sumatra Island, Hatta said the designation of authority would be decided this year so that strategic partners could be sought and construction begun.

The National Development Planning Board (Bappenas) previously announced that construction of the bridge would likely start early 2012 and be completed in 2017 or 2018.

“This year, everything in regard to designation of authority must be done. The infrastructure business entity of Sunda Strait Bridge strategic area (BUKSISS) needs to be formed,” Hatta said, adding that the Banten and Lampung local administrations would also form a consortium consisting of regency-owned enterprises and other strategic partners to construct the bridge.

According to Hatta, roughly US$15 billion will be needed to construct the bridge, which will be funded by a combination of state budget and private or state firms’ capital.

“We expect the Sunda Strait Bridge project to be a public-private partnership program that heavily relies on private companies, state firms or regency-owned enterprises,” he added.

Public-private partnerships state entities and private-sector parties are expected to boost infrastructure projects in the country, where infrastructure has been perceived to hamper economic growth. (est)