Ministry of Public Works and Housing of the Republic of Indonesia and Directorate General of Highway (Direktorat Jenderal Bina Marga) intends to undertake the procurement of the Project Company to implement the Preservation of the Jalan Lintas Timur Sumatera (non-toll road) in Riau Province under PPP scheme.

The return on investment for the project company will be in the form of Availability Payments. The purpose of the Project is to ensure the good quality of the Jalan Lintas Timur Sumatera in Riau Province as an effective solution to help accelerate Indonesia’s national development.

The Project is in process of obtaining the Government Guarantee. The PPP modality for this Project shall be Build-Operate-Transfer (BOT) with the scope of the Project consists of financing, technical design (Detailed Engineering Design for road, bridges and Motorized Vehicle Weighing Unit facility (fasilitas Unit Pelaksanaan Penimbangan Kendaraan Bermotor (UPPKB)), construction of road, bridges and Motorized Vehicle Weighing Unit facility, operation and maintenance of the existing road and bridges during construction period, and operation and maintenance of the road, bridges, and Motorized Vehicle Weighing Unit facility after construction period, and the Project Company will be required to transfer the road, bridges and Motorized Vehicle Weighing Unit facility which is located at Jalan Lintas Timur Sumatera in Riau Province back to the Government at the end of the concession period.

The estimated investment cost of the Project is IDR 585,303 million (US$ 39.06 million).

You can see the pre-qualification announcement for this project on the project profile page here.