Jakarta airport rail link to be tendered in Q2 2014

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Jakarta airport rail link to be tendered in Q2 2014

Several sources have indicated that the Jakarta airport rail Link project feasibility study will be completed in Q1 2014 and Sarana Multi Infrastruktur (SMI) will offer the project through competitive tender to be held in Q1 2014. 

SMI is the Indonesian state-owned company that has been charged with retaining the experts to prepare the feasibility study.

This Rail Link is the first light rail project in Indonesia in a century and the first passenger project of the modern era driven by private investment.

The expenditure budget of the Soekarno-Hatta International Airport (SHIA) Rail Link project is likely to require material government support by way of the Government's Viability Gap Funding (VGF).  The VGF regulation limits VGF funding to no more than 50% of capex, and it does not allow for any operating subsidy.

The project cost is estimated at US$1,49 billion.

Indonesia's authorized rail operator, state-owned Kereta Api Indonesia (KAI), is assured a role. The Indonesian rail law permits cooperation with private parties, and presumably the project tender will offer KAI as a partner.

The Soekarno-Hatta Airport (SHIA), which serves Jakarta, is the world's 9th busiest. SHIA moves more passengers than Dubai, New York-JFK, Singapore or Hong Kongand. Expansion targets 62 million passengers per year. Operating today at 57 million passengers.

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