T

he Public Works and Public Housing Ministry signed an agreement on Wednesday for the development of a section of the Balikpapan-Samarinda toll road, part of the Trans-Kalimantan highway, worth Rp 848.55 billion (US$57.86 million).

The signing secured the development of an 11-kilometer section connecting Balikpapan and Sepinggan in East Kalimantan, from the total of 99.02 kilometers divided into five sections that will connect Balikpapan and Samarinda.

The government signed the contract with Chinese contractor Beijing Urban Construction Group along with state-run construction companies Wijaya Karya and Pembangunan Perumahan.

'€œThis shows that our infrastructure development is not limited to Java but also covers East Kalimantan,'€ Public Works and Public Housing Minister Basuki Hadimuljono said in his speech.

He added that preparation for the construction could start right away, without waiting for the loan agreement with China, as is the case with many infrastructure projects.

China was accountable for 90 percent of the funding of the section, with the total amount of loans for the project reaching $65 million, while the rest was funded by the state budget.

Basuki also again reiterated his commitment to expedite the loan agreement process with China, after voicing concerns over slow disbursement that could take 28 months, during the contract signing of the Cileunyi-Sumedang-Dawuan toll road project in West Java.

'€œNo more than three months; if possible one month,'€ Basuki said at the event.

The construction of the section is slated to finish in two years, while the ministry expects the whole Balikpapan-Samarinda toll road project to commence operation in mid-2019. Land procurement of the first section has reached 60 to 70 percent, according to Basuki.

Meanwhile, the East Kalimantan administration will take responsibility for the 25.07-kilometer section connecting Balikpapan and Samboja, which is funded by the regional state budget.

East Kalimantan Public Works Agency head Taufik Fauzi said that the province had secured the contract for the first section in May this year with four state-owned firms including Wijaya Karya and Hutama Karya, as well as private construction firm PT Bangun Cipta Kontraktor.

'€œThe government set aside Rp 1.5 trillion from the regional state budget,'€ he said, adding that construction had reached around 7 percent.

The remaining three sections, totaling 64.42 kilometers including two sections connecting Samboja-Palaran and one section connecting Palaran-Jembatan Mahkota, will be tendered to private investors.

Basuki said that the development of the remaining three sections was in the prequalification process, with land procurement reaching more than 80 percent.

'€œWe usually give the area where we have secured most of the land procurement to the private sector, and the one with more difficulty to the government,'€ he said.

The whole Balikpapan-Samarinda toll road project is estimated to be worth Rp 14.9 trillion.

Apart from the signing of the toll road project, the ministry also signed a contract with Wijaya Karya for the Manggar River Bridge which will be part of the toll road. The contract is worth Rp 271.83 billion, and is also expected to last for two years.

Basuki highlighted the significance of the project for the development of industrial areas in Balikpapan and Bontang.

'€œThe toll road should drive the Balikpapan industrial area,'€ he said.

The ministry will also sign another major toll road project in North Sulawesi connecting Manado and Bitung on Monday. (fsu)