T

he article in The Jakarta Post (“Finance minister reels at risk posed by Sunda Strait”, June 4) indicates the financial risk involved in the entire project; construction of the bridge including revenue potential and (re)financing.

That is a clear statement and correct. Feasibility of the technical part, construction of the project most likely might show that it is feasible, taking into account additional measures and costs in regard to earthquake protection and other technical (im)possibilities.

Feasibility in respect to financial risks will be a more tricky issue and therefore requires thorough research and investigation. There is no point when future generations still have to suffer under the burden of repaying initial construction costs while (preventive) maintenance, also very important, will be on the backburner.

Nobody is mentioning the inclusion of feasibility of financial risks for smooth connections to the proper operations and existing infrastructure at both ends of the project, e.g. from Medan to Bali or over a more limited distance to Jakarta. What otherwise are the gains of such a costly project?

It might be worthwhile to narrow the gap between US$10 billion and $20 billion for the project itself — not easy at this preliminary stage of the project but very much advisable to give it a try.

The 2 to 3 percent cost for a feasibility study by Djoko in relation to the construction costs might sound excessive, but mind you Indonesia has no experience with projects of this dimensions and penny-wise-pound-foolish behavior will be punished sooner or later.

Of course, the higher the construction costs, then the feasibility costs cannot just be extrapolated proportionally and will be dictated by deliberate decisions.

The mentioning of $150 million is not advisable at this stage in the project as well as the remark by the lead engineer that the government should not be overly concerned about the risk as the cost will be covered by the initiator.

Mind you; at the start of the article it is stated that the government is required under previous agreements to cover all expenses if the project does not come on stream after the feasibility study is completed, whatever the reason.

Jorith Arbier
Jakarta