- PT Bangungraha Sejahtera Mulia
VIVAnews – The megaproject of Sunda Strait Bridge is being discussed intensively. The estimation of the cost will also change as the deliberation becomes more intensive.
Earlier the project was estimated to cost around Rp100 trillion, then the amount changed to Rp170 trillion. Again the projection of the amount increased, to Rp215.375 trillion (US$25 billion). The investment for the study and basic design alone costs Rp1.29 trillion (US$150 million).
According to National Development Ministry/ National Development Planning Agency, the number is still a preliminary estimation based on the quantity or volume of work and the price of work unit. The estimation may change, based on the experience of similar projects including Suramadu bridge and Akashi Kaikyo bridge in Japan.
It is reckoned that the project cost would go up as what happened to megaprojects. Identifying the details of the cost requires deep study as the land acquisition cost, planning cost, financial cost and other costs are not yet taken into consideration.
The government faces fund limitation because on national scale the government’s budget contribution is only 30 percent, while 70 percent is from private sector. In addition, the government’s high contribution will raise other regional government’s jealousy.
Thus the government must encourage cooperation between private sector and itself in the Sunda Strait bridge construction. The funding scheme that the government may take is domestic loans, foreign loans and state sharia commercial paper (SBSN) issuance.'
Translated by Indah Lestari
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