T

he government has appointed state-run construction firm Waskita Karya to construct the Raknamo Dam in Kupang, East Nusa Tenggara, which is part of the government'€™s program to attain food sufficiency.

The Public Works and Public Housing Ministry'€™s director general of water resources, Mudjiadi, said the Rp 782 billion (US$60 million) project was scheduled to break ground this Saturday and begin construction early next year.

'€œThe project will be constructed by Waskita and is set to break ground on Dec. 20,'€ Mudjiadi told reporters on Tuesday.

He said that the dam would take up 2,668 hectares of land and the government had almost completed the land acquisition for the project.

The dam will have a capacity of 14.09 million cubic meters and the water will be used to irrigate 841 ha of farmland. It has also been designed for use as a mini hydropower plant (PTLM).

Mudjiadi said that the dam construction was crucial for the province, which often experienced water shortages during the dry season. The dam will cater to the clean water needs of at least three villages: Naibonat, Raknamo and Manusak.

Separately, Waskita president director Muhammad Cholid said that his firm aimed to see 30 percent growth in revenues, profit and number of new contracts next year.

'€œThe new government'€™s quest to develop infrastructure in the country will surely boost our performance next year,'€ he said earlier.

Waskita also expects to pocket Rp 25 trillion in new contracts next year, a 30 percent surge from the Rp 18.7 trillion in new contracts this year. As of the third quarter this year, Waskita had recorded Rp 13.04 trillion in new contracts, or 69.7 percent of its new contract target this year.

Cholid said that his firm was currently reviewing the possibility of releasing new shares, which would be equivalent to 15 percent of its enlarged shares, to strengthen working capital for future infrastructure projects.

'€œWe are currently 66 percent owned by the government, so we still have enough space [for a rights issue],'€ he said.

Cholid said he had discussed the plan with the State-Owned Enterprises (SOEs) Ministry and that the ministry had offered two options to strengthen the firm'€™s working capital, either rights issuance or retained earnings.

Waskita has previously issued Rp 500 billion in bonds as part of its bigger plan to reap Rp 2 trillion from the bond market.

The firm plans to use the funds raised from the bond issuance to finance infrastructure projects, including Pejagan-Pemalang, Medan-Tebing Tinggi and Depok-Antasari toll roads.

The firm'€™s shares, which are traded on the bourse under the code WSKT, rose by 2.94 percent to Rp 1,225 a piece at Wednesday'€™s closing, from Rp 1,190 a piece at the previous closing.