UAE INVESTOR TO FUND RAILWAY CONSTRUCTION IN EAST KALIMANTAN

Jakarta, March 5 (ANTARA) - RAS Al-Khaimah, an investor from United Arab Emirates, is ready to finance the development of a 150-km long railroad in East Kalimantan.

"The details of the engineering design will soon be made. The memorandum of understanding was signed yesterday," East Kalimantan governor Awang Faroek Ishaq said after meeting Vice President Jusuf Kalla at the latter's office here on Wednesday.
Awang said initially the railroad connecting Muara Wahau and Lubuk Tutung would be used for coal shipments but later it would also be developed for passenger and farm produce transportation.
The project will be started this year. "The construction is predicted to take five years. The tracks will be wider than the conventional ones," he said.
Awang said the project would be part of the province's efforts to catch up with the development that had been achieved by other provinces. He said that although it had abundant natural resources the province still lacked infrastruture facilities.
He said besides a railway he also hoped the government would also build an airport and a seaport in the region.
He said the region also still lacked electricity. Apart from improving infrastructure facilities he would also revitalize agricultural and fishery sectors to prevent the region from suffering a shortage of economic resources after its mineral resources have been depleted.
"We do not want a case like in Aceh to happen in which its fertilizer and paper industries collapsed after its gas becomes scarce or in Bangka Belitung where its tin deposits are depleting.
Regarding forestry and plantations he said he would invite investors to invest in the area that share the border with Malaysia.
It is hoped illegal Indonesian migrant workers in Malaysia would return home to exploit the land for the projects, he said. "In this way it is hoped our region will become the veranda and not the back yard," he said.
East Kalimantan is one of the rich provinces in the country with its size 1.5 times Java Island. He said the provinces had abundant natural resources including oil, gold and coal