Indonesian Government agreed to grant 50 years concession to Kereta Cepat Indonesia China (KCIC) for Jakarta-Bandung high-speed rail project. Under the agreement, KCIC will hold the concession starting from May 31, 2019. The company would transfer the railway operation to the government after the concession period ends in good operational condition. It will not be guaranteed to a third party.
The cost of the project has been revised from USD 5.5 billion to USD 5.1 billion, after changing plans to build the fast train station in Halim, East Jakarta, instead of Gambir, in Central Jakarta.
The project has been put on hold for two months, despite a high profile ground breaking ceremony including President Joko Widodo, after the Transport Ministry revealed the construction company had not obtained necessary permits and concessions.
KCIC is a joint venture between China Railway International and a consortium on Indonesian state-owned enterprises, including construction firm Wijaya Karya, toll operator Jasa Marga, rail operator KAI and plantation company Perkebunan Nusantara VIII.
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