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Indonesian, Chinese companies sign agreement on monorail project
Publication Date : 04-10-2013
Witnessed by President Susilo Bambang Yudhoyono and Chinese President Xi Jinping, Jakarta-based PT Jakarta Monorail (JM) and China Communications Construction Company Ltd. (CCCC) on Thursday signed an agreement for the funding, design and construction of the monorail project.
The CCCC agreed to invest US$1.5 billion in the monorail project as well as funding the construction of a monorail assembly plant in Indonesia.
The joint venture will involve CCCC in designing and building the monorail as well as developing an integrated transit system. Furthermore, JM and CCCC will build a plant for the maintenance and assembly of the monorail cars, some of which will be imported from China.
“We believe we have made the right choice in investing in our partner PT Jakarta Monorail and we hope to share our experience in the engineeringand construction of large infrastructure projects,” CCCC International executive president Mo Wenhe said during the press conference.
In the agreement, JM reserves the right to involve state-owned train maker PT Inka as a strategic partner in assembling and potentially manufacturing the monorail trains.
JM president director Sukmawati Syukur said that only 50 trains would be directly imported from China.
“The remaining trains will be assembled in Indonesia,” she said, adding that the assembly plant would provide job opportunities for thousands of local workers.