ID :
12600
Wed, 07/16/2008 - 02:29
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Shortlink :
http://m.oananews.org//node/12600
The shortlink copeid
INCREASE IN COST FOR BUILDING TOLL ROADS ONLY FOR INVESTORS WITH FIDIC-BASED CERTIFICATE
Jakarta, July 15 (ANTARA) - The government decision on reviewing initial increase in the cost of toll roads currently under construction is only aimed at investors who had already secured a Federation Internationale Des Ingenieurs Conseils (FIDIC) standard certificate.
"I asked toll road investors not to make use of the policy of raising the cost of building toll roads is being processed by the government, because the policy applies only to projects based on FIDIC contracts," Head of the Contruction and Human Resources Development Agency of the Ministry of Public Works Sumaryanto Widayatin said on Tuesday.
He also said that the construction of toll roads was supposed to follow the stipulations laid down in the Toll Road Business Agreement (PPJT) jointly signed with the government. "Just look at the stipulations in the PPJT," he said.
He added that toll road investors were not supposed to apply for a raise in toll road building cost, because this infrastructure is an investment project.
"I really do not understand a toll road asking for an increase in construction cost, they need to realize that it is an investment," Sumaryanto said.
At a previous meeting with the Infrastructure Commission at Parlaiment Building, Public Works Minister Djoko Kirmanto said he will try to raise the cost of building toll road projects, because this condition has caused doubts to investors and contractors in building the projects.
But he said such good attitude was because the government was too good to toll road investors in helping overcome the impact of fluctuating world crude oil prices on building materials.
Therefore, he asked toll road investors which are in the middle of construction work, not to postpone their work merely because there is still no certainty on increase in the cost of their projects.
He also said that the increase in the cost of building toll roads will also be discussed in a cabinet meeting. Yesterday morning, the Public Works Minister has signed an official application for a raise in the cost of toll road construction to the Minister of Finance and the Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas).
"We are merely following the index in Presidential Decree No 80 of 2003 on the procurement of government goods and services," he said.
"I asked toll road investors not to make use of the policy of raising the cost of building toll roads is being processed by the government, because the policy applies only to projects based on FIDIC contracts," Head of the Contruction and Human Resources Development Agency of the Ministry of Public Works Sumaryanto Widayatin said on Tuesday.
He also said that the construction of toll roads was supposed to follow the stipulations laid down in the Toll Road Business Agreement (PPJT) jointly signed with the government. "Just look at the stipulations in the PPJT," he said.
He added that toll road investors were not supposed to apply for a raise in toll road building cost, because this infrastructure is an investment project.
"I really do not understand a toll road asking for an increase in construction cost, they need to realize that it is an investment," Sumaryanto said.
At a previous meeting with the Infrastructure Commission at Parlaiment Building, Public Works Minister Djoko Kirmanto said he will try to raise the cost of building toll road projects, because this condition has caused doubts to investors and contractors in building the projects.
But he said such good attitude was because the government was too good to toll road investors in helping overcome the impact of fluctuating world crude oil prices on building materials.
Therefore, he asked toll road investors which are in the middle of construction work, not to postpone their work merely because there is still no certainty on increase in the cost of their projects.
He also said that the increase in the cost of building toll roads will also be discussed in a cabinet meeting. Yesterday morning, the Public Works Minister has signed an official application for a raise in the cost of toll road construction to the Minister of Finance and the Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas).
"We are merely following the index in Presidential Decree No 80 of 2003 on the procurement of government goods and services," he said.