ID :
39599
Thu, 01/08/2009 - 21:48
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VP AGREES TO ACCELERATE COAL RAILWAY PROJECT IN S SUMATRA

Jakarta, Jan 8 (ANTARA)- Vice President Jusuf Kalla has agreed to the speeding up of the construction of a coal railway link between Lubuklinggau district and Tanjung Api-Api harbor in South Sumatra on condition it was done in accordance with existing procedures and regulations.
"The vice president has asked all partties concerned to abide by all existing regulations in accelerating the railway construction project," South Sumatra Governor Alex Nurdin said after a meeting with the vice president here on Thursday.
Alex Nurdin and Sutrisno, president director of PT Tambang Bukit Asam Tbk, attended the special meeting with the vice president to discuss the construction of the coal railway line from Lubuklinggau to Tanjung Api-Api as well as the development of Tanjung Api-Api seaport.
As part of the speeding-up effort, the South Sumatra provincial administration would also request a relevant permit from the Transportation Minister, he said.
"We will hold a tender for the project as soon as we get permission from the transportation minister," Nurdin said , adding that the construction cost was estimated to reach Rp11 trillion.
The 270-km long railway line would pass through six districts and three towns, and be constructed beside the present one, so there would be no need to clear land, he said.
He said the railway construction cost would be covered by foreign investors, not with funds from the regional or state budget.
"To date three foreign investors have expressed interest in financing the project," Nurdin said, adding it would take four years to build the coal railway line.
Meanwhile, Sutrisno, president director of coal mining firm PT Tambang Bukit Asam Tbk, said the company was now producing 10 million tons per year although its designed produotion capacity was 20 tons per year.
Over the next three years, the company's production was expected to reach some 50 million tons per year, he said.

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