World Bank Offers Loans for LRT Development

INDUSTRY.co.id - Jakarta- The World Bank offers loan assistance to Indonesia to build light rail transit in four cities - Medan, Bandung, Surabaya and Bali.

The offer was delivered by the Coordinating Minister for the Environment Luhut Binsar Pandjaitan in a coordination meeting on urban transportation held at the Coordinating Ministry for Home Affairs, on Wednesday. Also attending the meeting were Minister of Transportation Budi Karya Sumadi.

"So, there was a good idea from the Coordinating Minister because there is an offer from the World Bank to provide loans' assistance." Well we know that big cities in Indonesia are not yet maximized, we take that opportunity, "Budi said. after meeting.

Budi explained, the Indonesian government will present a proposal on the arrangement of urban transport in IMF-World Bank Annual Meeting in Bali, next October.

Of the four cities to be proposed, three of them already have project proposals namely Medan, Bandung and Surabaya.

"Plus was the proposal of Bali, so there are four cities that we will ask," he said.

Budi added that the project in the four cities is expected to use the Government Cooperation scheme with the Business Entity (KPBU).

"These four cities will be the KPBU project following the existing KPBU in LRT Jabodebek," he said.

Nevertheless, Budi said the proposed investment value needed for urban transport development in four cities could not be mentioned yet.

In addition to its early stages, the government stressed the importance of proposing real and solutive projects especially for large densely populated cities.

"There will be a weekly meeting to discuss this because it is still very early," he said.