Abstract: Toll roads are on the fast track in Indonesia where poor road conditions and congestion are clogging the public roads. Private investors have the opportunity to invest in 1,813 km of toll roads planned to be in place by the year 2020. The government is seeking private-sector involvement because of an extreme need for infrastructure improvement to catch up with the nation's rapid economic growth and because of the enormous capital requirements for such projects. This article describes Indonesia's 5-year development program--worth $3 billion (United States)--that is supposed to produce 310 km of new toll roads by 1999. The island of Java is the focus of 97 percent of the total length of road included in the 19 toll road projects being contracted. A number of risk-sharing systems are being utilized, including build-operate-transfer, build-transfer-operate, and the modified turnkey. Toll road users in 1995 had nearly tripled to one million vehicles a day, up from 379,210 in 1989.
Publication Year: 1996
Publication Date: 1996-07-01
Language: en
Type: article
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