Jakarta (ANTARA) - The Ministry of Public Works and Public Housing (PUPR) will build the Kediri-Tulungagung toll road in East Java at an investment of Rp10.49 trillion ((US$728 million) under a public-private partnership (PPP) scheme, an official has said.
"In this market sounding, we will offer the 44,51-km Kediri-Tulungagung toll road project under a PPP scheme with an investment value of Rp 10.49 trillion," head of the ministry's Directorate General of Public Works and Housing Infrastructure Financing Herry Trisaputra Zuna informed on Monday.
The concession period for the toll road will be up to 50 years with a user charging scheme, he said.
"It is planned that the Kediri-Tulungagung toll road project will enter the auction stage in the third quarter of 2022," he added.
The Kediri-Tulungagung toll road project is an unsolicited PPP project initiated by PT Gudang Garam Tbk, Zuna said.
The project is a continuation of the Kertosono-Kediri toll road, which aims to support the construction and development of the Kediri Airport, he added.
The toll road is expected to ease access to the southern part of East Java, according to Zuna.
The Kediri-Tulungagung toll road project is a manifestation of the government's commitment to improving infrastructure in Indonesia as part of efforts to realize inter-regional connectivity, he said.
The project is also expected to provide direct and indirect benefits to the community. The direct benefits for the community will be a reduction in vehicle operating costs and time value and reduced travel time to Kediri Airport, Zuna said.
"In addition, related to the indirect benefits of the toll road project, it is hoped to increase income from local production due to the easy access for the mobility of production goods and the increase in land value in line with the development of the area around the toll," he added.
