China Railway Group Wins Tender To Build Railway In C Kalimantan

Palangka Raya, Central Kalimantan, Oct 13 (Antara) - The consortium of China Railway Group Limited, PT Mega Guna Ganda Semesta and PT Royal Energi has won the tender for the construction of a 425 kilometer rail track in Central Kalimantan. Construction of the track to be built between Bangkuang and Batanjung will cost around US$5.4 billion. With the winner of the tender already announced on Sept. 17, the Central Kalimantan regional administration hopes that construction could start soon. The groundbreaking to mark the start the construction is expected to take place this year, Syahrin Daulay, the deputy chairman of the Committee for the railway procurement, said here on Monday. Syahrin said there is agreement to be signed in two months and preparation to be made including on project cost "but we hope at least ground breaking ceremony could take place this year." The consortium has proposed to build the first railway in Kalimantan at a price of US$5.4 billion, he said. He said the fund will include for the construction of seaports in Bangkuang and Batanjung and a 50-megawatt steam powered electric plant. The villages close to the rail track would, therefore, gain with share in electrification, he said. He said the consortium is given 60 days to prepare various documents . The provincial administration of Central Kalimantan hopes that construction would start by the end of 2014 or not later than 2015, he said.