T

he West Java provincial administration plans to host a soft launch of the Greater Bandung Monorail in September, pending the establishment of PT Jabar Monorel, a joint venture company that will oversee the project.

Head of the Greater Bandung Monorail Acceleration and Facilitation task force Iwa Karniwa said on Thursday that the establishment of PT Jabar Monorel was still awaiting a regulation from the Law and Human Rights Ministry, which would offer the legal basis for the company.

'€œThe routes will be determined upon the establishment of the company,'€ he said.

PT Jabar Monorel is a joint venture company, comprising PT Sarana Infrastruktur Indonesia, a subsidiary of the Panghegar Group; Bandung-owned company PT Jasa Sarana, and the China National Machinery Import & Export Corporation (CMC), which is providing the capital to finance the project.

Iwa said the joint venture was vital because the mega-project was applying a business-to-business program.

'€œThe West Java administration is only facilitating the regulation,'€ he said.

Iwa said that based on an initial agreement, Jasa Sarana will have a 51 percent stake and Sarana Infrastruktur Indonesia 49 percent, while CMC will fund the project, which it has been estimated will cost Rp 18 trillion (US$1.5 billion).

The cooperation on the monorail project has been inked in a letter of intent (LoI), a memorandum of understanding (MoU) and a memorandum of agreement by President Susilo Bambang Yudhoyono and Chinese President Xi Jinping.

The rapidly growing population in West Java, particularly in its capital Bandung, has created increasing demand for an alternate transportation system in the province.

'€œThe monorail aims to solve traffic problems and ease the flow of people and goods in Bandung,'€ Bandung Mayor Ridwan Kamil said recently.

The joint venture will first build the Leuwipanjang-Gedebage-Jatinangor route, stretching 29.8 kilometers, which will cost around Rp 6 trillion.

'€œThe main station will be built in Leuwipanjang. Land acquisition is not required because all the land is state property,'€ Iwa said, adding that the project was expected to be completed by 2017.

The Greater Bandung Monorail will incorporate five routes in total, connecting Bandung regency, Bandung city, Cimahi city, West Bandung regency and Sumedang regency.

'€œAll the routes are scheduled to be completed and in operation by 2025,'€ Iwa said.

He said the project would not be feasible if it relied solely on current passenger volume; therefore, the provincial administration was also encouraging the development of satellite cities along the monorail network.