President has approved Jakarta monorail project: governor

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has signed a decree approving the construction of a monorail system in Jakarta, meaning that work on the stalled project can be resumed and completed as scheduled by the Jakarta city administration, Jakarta Governor Sutiyoso said.

"I have information that the president has signed a decree approving the monorail project. It means the finance minister will no longer hesitate to issue a comfort letter as requested by the project`s financier, the Dubai Islamic Bank (DIB)," the governor said after a meeting with the House of Representatives (DPR)`s Commission IV at City Hall here Monday.

Sutiyoso said he hoped the Jakarta Legislative Council (DPRD) would not delay issuing a needed letter on implementation of the long-awaited project.

But he said he did not know the precise content of the presidential decree.

Meanwhile, Jakarta city administration secretary Ritola Tasmaya said the DIB had requested the comfort letter so that it could issue a loan for the project.

Other requirements besides the comfort letter for DIB were a finance minister`s decree, a finance minister`s regulation, a Jakarta Legislative Council letter and an agreement between the Jakarta city administration and PT Jakarta Monorail consortium which was carrying out the project.

Ritola said the documents would be sent to DIB not later than December.

Before the DIB loan was received, work on the project would be financed with a bridging fund from Malaysia.

DIB had previously asked the Jakarta city administration to provide a project risk guarantee of US$500 million.

The Jakarta monorail targets to carry 160,000 people a day.

The Jakarta Monorail Consortium, however, had asked the central government and the Jakarta city administration a warranty of $22.5 million per year over a five-year period to cover losses in case the monorail cannot reach the target.

The Jakarta monorail will consist of a 13.5-km Blue Line linking Kampung Melayu in East Jakarta and Roxy in West Jakarta, and a circular 14.3-km Green Line passing through the Rasuna Said. Gatot Subroto avenues, the Sudirman Central Business District, the Senayan and Pejompongan areas.

The Jakarta Monorail company said the Green Line would be completed for trial by late 2007 and the Blue Line by mid-2008.