ID :
17246
Thu, 08/28/2008 - 11:12
Auther :
Shortlink :
http://m.oananews.org//node/17246
The shortlink copeid
GOVT PREPARES RP4.8 TRILLION FOR LAND CAPPING
Jakarta, Aug 27 (ANTARA) - The government has prepared Rp 4.8 trillion for land capping so that land clearance for government infrastructure projects would run smoothly.
This remark was made by Minister of Public Works Djoko Kirmanto in Jakarta on Wednesday, adding that such a huge budget would be allocated for land capping in the 2008-2010 period.
Land capping is a government's policy of bearing excess cost of land clearance exceeding the ceiling set in a tender. The excess is calculated as follows: if it is in excess of 110 percent of the value of the land, or 2 percent of the investment, the highest figure would be taken. This guarantee for land procurement is given only to financially feasible projects.
"This is already allocated to the Public Works Ministry by the Finance Ministry," he said.
Djoko further explained that up till now his office has not received a request for this land capping program except for toll road projects in Jakarta, although they have already prepared the funding to guarantee the smooth construction of the infrastructure projects.
Djoko said the land capping scheme would not be given to some projects currently already being constructed by contractors, such as land clearance for the Cirebon-Brebes trans Java toll road, because the price of land has not been raised. "Land capping is needed when we are working on the Jakarta Outer Ring Road (JORR), becaise the price of land has been raised higher than we have set," he said.
He added that the government prepared the funding but still on the condition of a claw back (profit sharing if the funding is bigger than projected) principle.
"But the claw back principle does not apply to contracts already signed. Future contracts would have to be negotiated with the investors," he said.
This remark was made by Minister of Public Works Djoko Kirmanto in Jakarta on Wednesday, adding that such a huge budget would be allocated for land capping in the 2008-2010 period.
Land capping is a government's policy of bearing excess cost of land clearance exceeding the ceiling set in a tender. The excess is calculated as follows: if it is in excess of 110 percent of the value of the land, or 2 percent of the investment, the highest figure would be taken. This guarantee for land procurement is given only to financially feasible projects.
"This is already allocated to the Public Works Ministry by the Finance Ministry," he said.
Djoko further explained that up till now his office has not received a request for this land capping program except for toll road projects in Jakarta, although they have already prepared the funding to guarantee the smooth construction of the infrastructure projects.
Djoko said the land capping scheme would not be given to some projects currently already being constructed by contractors, such as land clearance for the Cirebon-Brebes trans Java toll road, because the price of land has not been raised. "Land capping is needed when we are working on the Jakarta Outer Ring Road (JORR), becaise the price of land has been raised higher than we have set," he said.
He added that the government prepared the funding but still on the condition of a claw back (profit sharing if the funding is bigger than projected) principle.
"But the claw back principle does not apply to contracts already signed. Future contracts would have to be negotiated with the investors," he said.
