40 investors show interest in Indonesian airport

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40 investors show interest in Indonesian airport

According to the President Director of Indonesia's West Java International Airport (BIJB) Virda Dimas Ekaputra, more than 40 investors have showed interest to invest in the development of Indonesian Kertajati airport.

BIJB had officially opened the tender for the project through a Market Sounding exercise to meet the investors. Virda Dimas Ekaputra said:

"We had invited them here to provide information on the bidding process and other necessary requirements. After the event, we will move on to the pre-qualification phase, which will take place in the second week of January 2016."

Interested investors come from Switzerland, Turkey, Germany, Qatar and India, along with local investors.

According to Indonesian law, foreign investors may hold a maximum stake of 49 percent.

Located in Majalengka district, the project involves the development of ground infrastructures and other related facilities. Kertajati International Airport is planned with 3000 meter runways and 60 meter wide. There are also plans to extend it to 4000 meters. Its capacity is planned for 12 million.

The total project investment is estimated at Rp25,4 trillion (US$1.8 billion).

In 2009 the Australian owned Project Management company Allied Projects completed a feasibility study for the airport and facilitated negotiations with funding providers for financing the project under a build operate and transfer (BOT) contracting model. But finally negotiations with local government officials broke down due to differences in control of the project funding.

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