Light Rail Transit Deal
The Korea Rail Network Authority (KRNA) has established a foothold to win the Jakarta Light Rail Transit (LRT) Stage 2 and 3 construction projects in Indonesia.
The state-run company announced on July 3 that it has sent its LRT technical experts to the Jakarta's Ministry of Transportation in order to participate in the Jakarta LRT Stage 2 and 3 projects worth 5 trillion won (US$4.35 billion won), which includes the construction of approximately 110 kilometres of seven rail lines.
The KRNA sent its workers at the official request of the state government of Jakarta. The Jakarta LRT Stage 2 and 3 projects are large railroad construction deals after the LRT Stage 1 project in which the KRNA are taking part now. The LRT Stage 1 section, which covers 5.8 kilometers, is scheduled to be opened in August 2018. The KRNA aims to win the Jakarta LRT Stage 2 project, which extends 8.95 kilometers of railways, at the end of this year and will complete a feasibility study in August this year.
Meanwhile, the LRT Stage 2 interim feasibility study results were presented on the June 15 in Jakarta. The meeting was attended by 40 governmental officials, including director of the Jakarta's Ministry of Transportation. The LRT Stage 2 project will be implemented with public private partnership (PPP) schemes and available payment (AP) methods, which guarantee returns on investment. It is expected to easily raise funds and South Korean construction and engineering companies are highly likely to participate in the project. So, it will give economic vitality to domestic firms in the long term.