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Aborted Tender Leaves Bidders Furious at Govt
Dion Bisara | January 29, 2012

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suarasing
12:08pm Jan 30, 2012

...but they can afford IDR 20 bilion renovations each at the DPR, the Presidenmtial Palace, the Public works Dept...what others I wonder????

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The cancellation of a tender for a Rp 11.7 trillion ($1.3 billion) new container terminal in North Jakarta could hurt Indonesia’s investment prospects, two bidders said on Sunday.

“The cancellation is not good for the government’s image ... and investment climate,” said Bernardus Djonoputro, president director of Nusantara Infrastructure, which bid the project through a consortium of companies that included 4848 Global System, Mitsui and Evergreen.

The government scrapped the result of a pre-qualification tender for a project to build a new container terminal at Tanjung Priok Port in North Kalibaru because it could not afford to jointly finance the project. Under the blueprint, the government was required to provide Rp 3.5 trillion for roads and bridges to the area.

That decision came despite the government shortlisting five consortiums in August. The government started the tender last June and was supposed to announce a winner in October this year.

Bernardus said the government’s lack of preparation made investing in Indonesia’s infrastructure through a public-private partnership “risky.” “Companies could lose $1 million to $2 million spent on a feasibility study to participate in a tender if the tender is canceled,” he said.

Bernardus suggested the government establish a clearinghouse directly under the president to manage PPP projects, including marketing, business development, tendering, negotiations and financial completion.

Also expressing disappointment was Boy Thohir, president director of Brilliant Permata Negara, which bid for the project through The Jakarta New Port Consortium. He said the cancellation “will definitely diminish investors’ trust in participating in government-backed projects, despite Indonesia receiving investment grade [ratings] from various rating agencies.”

Brilliant Permata was in a consortium with Salam Pacific Indonesia Lines, Cosco Shipping and Hutchison Ports Indonesia.

Boy said his consortium had worked hard to arrange adequate finance. “We had prepared enough funds to finance this Kalibaru project. Four overseas lenders and Bank Mandiri had given commitments to us,” he said.

According to minutes of the meeting in which the Transport Ministry informed bidders of the change of plans, official Kemal Heriyandri said the shortlisted candidates would be given priority in another tender to build a port in Cilamaya, Karawang.

He said the government would assign a state-owned enterprise, which has its own budget, to build the Tanjung Priok port, freeing the government from funding it.