INDONESIA HALTS RAIL PROJECT AFTER 5 DAYS

• Me Wathana
• 7 April 2016
• Construction Focus
• 1731 Views

The Indonesian government has halted work on the controversial Jakarta-Bandung high-speed rail project just five days after the ground-breaking ceremony.

The chaotic bidding process for the $5 billion project saw the government first halt the bid in favour of a cheaper local line before then finally awarding the bitterly contested bid to China over Japan. The Indonesian transport ministry confirmed in late January that the Chinese-Indonesian JV has not yet submitted the required paperwork to be granted a building permit.

In addition, the concession agreement remains unresolved over issues relating to risk of default and the duration of the concession, as well as land provided for station construction among others.