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Batu Ampar project reopened to bidders

JAKARYA: Transport Ministry urged for immediate rebidding of Batu Ampar Port expansion project since such expansion is urgently needed.The Ministry conducts such measure because there is still no certainty from the France investor about the project execution.Its

JAKARYA: Transport Ministry urged for immediate rebidding of Batu Ampar Port expansion project since such expansion is urgently needed.The Ministry conducts such measure because there is still no certainty from the France investor about the project execution.Its better to conduct rebidding because Strait of Malacca is very strategic and Batu Ampar Port is one of the largest ports in Indonesia, Deputy Transport Minister Bambang Susantono said in Jakarta over the weekend.The government inserted the port development project into the list of 11 infrastructure projects that will be inaugurated this month.Those 11 projects are part of sixty five SOEs infrastructure projects planned in the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI).Such rebidding will allow the entry of more investors, so hopefully it can provide a better deal.We had given the previous winner a chance to execute the project but they had done nothing up to now. Therefore, rebidding is necessary, the sooner the better, Bambang added.Such statement from the Deputy minister is a response to the plan of Employment Agency (BP) Batam, which will hold a rebidding of Batu Amper Port construction worth IDR4 trillion.Since 2007, the construction has not yet been executed by the previous bid winner, a France-based company called Compagnie Maritime d'Affretement-Compagnie Generale Maritime (CMA-CGM)as well as the management of the international port concession for 50 years.The France investor is still affected by global economic crisis that hits France."We have already given the France investors a deadline until August 2011 to provide certainty of the project execution," BP Batam's Head of Public Relations and Publications Dwi Djoko Wiwoho said. (Bisniss, July 1).BP Batam will immediately seek for another investor and conduct rebidding after the deadline is over.Local House of Riau Islands and several community circles urges BP Batam to immediately hold a rebidding since the capacity of Batu Ampar Container Port Terminal has already exceeded.Moreover, Batam is set as a trade zone and free port. Currently, cargo ship often stuck in long lines before unloading the goods at the Port. Such condition inflicts financial loss to businesspeople since delays in goods delivery often occurs.Chamber of Commerce and Industry (Kadin) Riau Islands also urges an immediate rebidding. According to its official site, Kadin is poised to bring in investor that capable to construct and manage Batu Ampar Container Port. Currently, two China investors are ready to join the rebidding.Top Economic Minister Hatta Radjasa once admitted there are 11 SOE projects that will be inaugurated in July.Those projects are fertilizer plant in East Kalimantan worth US$600 million and a 2x100 MW power plant in Banjar Sari, South Sumatra, worth IDR2.9 trillion. (T06/NOM)

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