Singapore construction giant L&M Group has linked up with Indonesia’s PT Kuda Perkasa (KDP) to secure work on the US$1.3BN first phase of Jakarta’s metro project, set to start later this year.
About 10km of the 20km first stage will be built in tunnel with the rest on elevated track. Construction is likely to start in 2003 with completion in 2007. The first stage will run from Fatmawati in south Jakarta to Kota Railway Station in the north.
Under their agreement, the two firms will form an as-yet unnamed joint venture company that will seek top-up private finance for the scheme. It will also seek construction opportunities, possibly involving a project management role.
L&M chief executive officer Edward Soeryadjaya said: "We will be the first to know when the contracts are up for tender and what the details are."
KDP has been in discussions with the Jakarta city government and national Indonesian authorities for the scheme since 1990, but these talks were mothballed three years ago following the Asian financial crisis.
The project has been revived after Japanese aid agencies and financial institutions agreed to provide US$1.1BN under a 40-year loan agreement.
