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LRT Palembang contract to be signed on Thursday
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A worker from PT Waskia Beton Precast checks girders at a factory in Palembang, South Sumatra. (JP/Donny Fernando)
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fter delays, the Transportation Ministry’s director general for railway transportation, Prasetyo Boeditjahjono, said the government would very likely sign a contract for light rail transit (LRT) in Palembang, South Sumatra, with state-run construction firm Waskita Karya on Thursday.
"There are no problems left," he said on Thursday.
He said the project would be funded by the state budget within three years until 2019, although the funding might last until 2021.
(Read also:Government turns to LRT contractor for funding)
This year, the government will disburse Rp 2 trillion (US$149.9 million) for the project from the state budget.
"It would actually be safer if it was budgeted until 2021," Prasetyo added.
The signing ceremony was initially slated to take place last Friday along with the controversial LRT for Greater Jakarta. However, the ceremony was postponed to wait for Transportation Minister Budi Karya Sumadi’s agreement.
The contract value is estimated to be Rp 10.9 trillion. The project is designed to support the 2018 Asian Games. (bbn)
