Japan Agree to Give Rp 25 Trillion Debt for MRT Project

Debt is used to finance the rest of phase I and phase II worth Rp 22.5 trillion

JAKARTA - The Embassy of Japan agreed to again disburse funds in the construction of mass rapid transit (MRT) phase II. Funds lent reached Rp 25 trillion. "Phase II, already, the Embassy of Japan Government is in agreement with the Ministry of Finance and to the Ministry of Foreign Affairs that the Japanese government guarantee to finance phase II," said PT MRT Jakarta Director William P Sabandar at his office here Thursday (28/6) . Currently the process of providing debt is still in process. Exchange notes and law agreements are being prepared. The man who is familiarly called Willy explained, the draft letter of the current agreement has been made and is still in the process of discussion. He hopes there will be developments in one or two this week. "The hope is that the July law agreement has been signed," he said. According to Willy, the loan amount is Rp 25 trillion. The fund will be used to finance the second phase of development of Rp 22.5 trillion. The rest to complete the construction of phase I. Total lanes built in phase II that is along 8.3 kilometers. With this agreement, the Government of Japan will finance phase I and II projects. In phase I, the disbursed funds reached Rp 16 trillion. The fund has been used as much as 60 percent. Funds needed for phase II reached Rp 22.5 trillion. After the two phases, PT MRT Jakarta will also work on phase III with the Kembangan - Ujung Menteng line. The project will be continued to two buffer city of DKI Jakarta.