Public works minister: 91 pct of 2007 budget already spent

Jakarta (ANTARA News) - Public Works Minister Djoko Kirmanto said that 91 percent of the ministry`s 2007 budget will have been spent on projects in the regions by the end of the year.

"We have made an inspection and met with the project officers in the regions. And we find that about 91 percent of the projects in the regions had been completed," he said here Wednesday.

He also said that preliminary information had been incorrect saying as if only 70 percent of the projects had been completed.

"They (project officers) especially those implementing multiyear packages made their evaluation on the basis of the progress of their work, whereas actually to determine how far the completion of their work has got, they need to look at the budget they have spent," he said.

With regard to the 2008 budget, the minister said a tender has already been held in November and December 2007, so that in January work can be started as the funding has already been disbursed.

"At least the contracts worth Rp 6.6 trillion had already been signed, which include multiyear contracts on packages on construction of the Jatigede reservoir in Sumedang, West Java, and the Suramadu (Surabaya-Madura) bridge in Surabaya, East Java.

The minister believed that the contracts of work signed up to the end of 2007 may reach Rp14 trillion, so that work can be started by January.

He also believed that the industrial fuel oil price hike in 2007 will continue in 2008, for which the government has prepared a clause on force majeur if prices of building materials became out of control due to the price hikes.

"We have not decided whether the volume of work would be reduced in view of the building material price hikes, but we have already made some anticipations," he said.