News
PII Guarantees Jayapura-Wamena Portion of Trans Papua Road
WINDONESIA July 17, 2024
Construction of the Trans Papua Road. (PUPR Ministry).
Finance Ministry Special Mission Vehicle Penjaminan Infrastruktur Indonesia (PII) is committed to providing guarantees for the Jayapura-Wamena portion of the Trans Papua Road project's Mamberamo-Elelim Segment in Highland Papua Province.
The signing of several cooperation agreements for this 50.14 km road project, which is worth Rp3.33 trillion, took place on Jul. 3, 2024.
Finance Ministry Financing and Risk Management Director-General Suminto stated that the involvement of the private sector in meeting infrastructure financing needs is crucial. The limitations of the state budget continue to encourage innovations in creative financing to address these limitations, including through collaboration between the government and the private sector.
"Hopefully, the success of the support and sinergy provided by the Finance Ministry through PII can be replicated in development of areas that are similar to Papua, both geographically and economically," Suminto stated on Jul. 5, 2024.
Meanwhile, PII President Director M. Wahid Sutopo said that with the signing of the guarantee and recourse agreements for the Jayapura-Wamena portion of the Trans Papua Road project PII, according to its mandate, will provide guarantees covering the risks of delay or failure in Availability Payment, termination by Person in Charge of Cooperation Projects (PJPK), and termination due to force majeure.
The guarantees provided by PII are intended to offer certainty and comfort to those investing in the project.
"PII's commitment to continuously promoting innovative financing schemes will continue, one of which is through PII's contribution by providing guarantees for this project, which will be a significant step for infrastructure development efforts in Papua and serve as the main logistics transportation route from Jayapura to Wamena," he explained.
"[The project] is expected to significantly improve accessibility and connectivity as well as expand the road network, potentially enhancing the welfare of people in Eastern Indonesia, especially Papua," Sutopo added.
Source: www.liputan6.com