PT MRT Jakarta discusses funding scheme with AIIB

Jakarta (ANTARA News) - PT Mass Rapid Transportation (MRT) Jakarta has discussed funding scheme with Asian Infrastructure Investment Bank (AIIB) for its future project.

"On Monday we received AIIB officials in Jakarta. We discussed several issues including funding scheme for next MRT development project," the companys president director, William Sabandar, said here on Tuesday.

He said the AIIB officials had come to directly see the development of the current MRT project in Jakarta and at the same time also discuss funding scheme, tariffs and potential of MRT Jakarta non-fare box business.

"There were at least four funding schemes found to be implementable. The first scheme is done through inter-government loans with equity investment from government funding," he said.

The second is through commercial corporate financr in the form of asset-based corporate bonds or export credit agencies for imported components, he said.

The third scheme is done through government-business entity partnership and the fourth through partnership between the government and budiness entities through initial public offering.

Sabandar said PT MRT Jakarta has been appointed as the sole operator of transit oriented development (TOD) area for the first and second phases of the MRT project.

"I think the appointment could br used as one of non-fare box revenue sources to assure sustainability of the MRT Jakarta operation and development," he said.

He said until the end of February civil and architectural construction of the first phase of the project had reached 91.86 percent while two sets of MRT engines are expected to arrive in Jakarta on March 26.

"The presence of MRT is expected to be one of the solutions to deal with traffic congestion in line with a change in the lifestyle of residents who would change from private cars to public transportation system in addition to improving air quality," he said.

Source: ANTARA News

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