Jakarta: The Public Works and Public Housing Ministry has confirmed that the construction of the 27-kilometer Semarang-Demak toll road will begin this year.
Toll road operator PT Pembagunan Perumahan Semarang Demak has been established by a consortium of PT Pembangunan Perumahan, PT Wijaya Karya and PT Misi Mulia Metrical as the winner of the project tender.
The ministry's Toll Road Authority (BPJT) hopes that the signing of the toll road concession agreement (PPJT) can be held in September 2019.
According to BPJT head Danang Parikesit, the project still needs Finance Minister Sri Mulyani Indrawti's approval in order to get a government guarantee from the Indonesia Infrastructure Guarantee Fund (PPI).
The project expected to increase connectivity between Semarang and Demak. It is also designed to prevent coastal flooding in northern Semarang.
"This toll road project hopefully can revitalize industry areas in the region. The industry areas in the region will be free from coastal flooding," Danang said in a written statement released on Monday.
Danang explained that the construction process will take at least two years. He added that the project will cost around RP15.3 trillion.
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