Monorail job will be done by 2008

Monorail job will be done by 2008, Sutiyoso says
The Jakarta Post, Jakarta

Pressure from the finance minister to complete the monorail project by March 2010 does not seem to be affecting Governor Sutiyoso too much.
He said Tuesday he was confident of getting the job done because the monorail's construction was scheduled to resume at the end of the month.
"I am optimistic we can meet the deadline," Sutiyoso said at City Hall.

The central government issued Monday a letter of guarantee to enable the disbursement of a foreign loan for the project.
Issued through a ministerial decree, the finance minister also set the condition that the monorail project must be completed by March 2010 or it would revoke the blanket guarantee it offered to secure a US$500 million loan from the Dubai Islamic Bank.

The government will also provide about US$11.25 million per year for five years to cover any financial shortfalls in the monorail's operations.
The city administration must first pay its share of the guarantee scheme, which also amounts to $11.25 million, before the central government disburses its share.

The construction of the monorail began in 2004 but progression has been slow due to funding problems.
"If PT Jakarta Monorail can speed up the construction, the green line will be finished by 2008 at the latest," Sutiyoso said.

He added that in 2009 the consortium was expected to finish the blue line, so in 2010, both lines would be ready for operation.
The monorail's green line will run through the Kuningan business district in South Jakarta, along Jl. Sudirman and to Tanah Abang in Central Jakarta. The blue line will link Kampung Melayu in East Jakarta with Roxy in West Jakarta.

Jakarta Monorail director Sukmawaty Syukur echoed Sutiyoso's confidence the project would be finished ahead of the deadline imposed by the Finance Ministry.
"Once we finish discussing financial matters -- by the end of the week -- we will be able to resume building activities," she told The Jakarta Post.

Besides Dubai Islamic Bank, a number of local banks have expressed interest in the project. A team from Jakarta Monorail is discussing the possibility of opting for more local borrowings.
Sukmawaty said the construction of the monorail columns began last year.
She said there was no problem with the company starting the construction before it got the money, as banks had signed agreements to guarantee they would provide loans for the project.

Sayogo Hendrosubroto, who sits on City Council Commission D for development, said the central government had the authority to issue a decree on the monorail project.
He said he understood the Finance Ministry's decision to set tough conditions for the Jakarta administration and Jakarta Monorail because the people's money was at stake.

"In order to secure the funds the government has poured into the project, it is appropriate to set a deadline," he said, adding that Jakarta was not the only concern of the central government. (05)