Construction of Jakarta`s monorail project delayed again

Jakarta (ANTARA News) - PT Jakarta Monorail (JM) said construction of monorail project in Jakarta has been delayed again over cost of pillars supporting the rails being not yet settled with state construction company PT Adhi Karya .

PT Adhi Karya already built a number of piers supporting the elevated railway when it was involved earlier in the construction of the mass transport project.

Later Adhi Karya quit and PT JM agreed to take over and repay the cost spent by Adhi Karya in building the pillars.

The problem, however, remained over disagreement on the amount to be paid by PT JM.

"If problem over the payment has not been settled we could not resume work, despite commitment we have made with the Jakarta city administration," JM President Director John Aryananda told reporters here on Friday.

John said PT JM is awaiting report from BPKP, the government project financial watchdog which is auditing the cost to determine the compensation PT JM has to pay to Adhi Karya.

"There has been statement that the amount we have to pay is Rp190 billion, but it has no legal basis," he said.

He said if BPKP has not wrapped up the process of auditing this month construction of the project would be delayed again.

The project is already delayed for years over financing difficulty.

"There is too much backlog to make up for. That is the risk that we have to accept. We cant do anything until after BPKP finishes the process of auditing as we would only pay based on the result of the auditing," he said.

Meanwhile, Corporate Secretary of PT Adhi Karya M Apriandy said based on an audit carried out by BPKP in 2010 the cost of the building the pillars reached US$14.8 million .

"Later on PT Adhi Karya and Orthus Holdings (an investor partner of PT JM), agreed to hire an independent appraisal Ami Nirwan Alfiantori (ANA) to calculate the cost to be compensated by PT JM for the foundation and pillars built by Adhi Karya . An estimated price was found at Rp193 billion," Apriandy said.

However, PT JM could not yet agree with the figure that Adhi Karya and Orthus met again in January in 2013 and it was agreed the price was Rp190 billion.

Apriandy said Adhi Karya already built the board piles and the piers for the monorail.

"However, we could not yet built the station of the monorail as the fund needed for the construction is not yet paid by PT JM," he said. (*)