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Wika to sign contract for highspeed railway next week
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President Joko Widodo ( left) inspects the model of a high-speed train that will connect the capital city of Jakarta to the country's fourth- largest city, Bandung, with president of China Railway Corp. Sheng Guangzu (right), Chinese state councillor Wang Yong (second right), and Chinese Ambassador to Indonesia Xie Feng (third right), during the groundbreaking ceremony for the construction of its railway in Cikalong Wetan, West Java, on Jan. 21, 2016. (AP Photo/Dita Alangkara)
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tate-owned construction firm Wijaya Karya (Wika) plans to sign the engineering, procurement and construction (EPC) contract for the Indonesia-China high-speed railway connecting Jakarta and Bandung, West Java next week.
The contract will be signed with the Indonesia-China joint firm Kereta Cepat Indonesia China (KCIC), which oversees the project.
“There will be us and two Chinese contractors. We have 30 percent stake,” Wika president director Bintang Perbowo said on Thursday.
The contract, valued at Rp 16.8 trillion (US$1.2 billion), is part of the construction of the $5.2 billion project that will span 142.3 kilometers across the two cities.
(Read also: Jakarta-Bandung high speed railway to get Chinese loan)
The contract is also necessary for a financial agreement between KCIC and Chinese Development Bank (CDB), he said, adding that CDB was slated to cover three-fourths of the funding through a loan.
“They want to have the contract signed before going over the financial closing. I think it’s normal as there is no state guarantee for this project,” Bintang added.
The firm would only have to hand over the contract and land procurement documents to the bank, among others, as the remaining technicalities, to receive the loan.
Land procurement stands at 93 percent, with the remaining land around Karawang and Purwakarta, West Java, in the industrial and real estate area. (bbn)
