BUMN Karya working on Philippine railways project, Erick Thohir: Proof of international trust

MANILA -- Indoensian minister of State-Owned Enterprises (BUMN) Erick Thohir said that two state-owned enterprises, PT Adhi Karya (ADHI) and PT Pembangunan Perumahan (PP) were trusted to build railway infrastructure in the Philippines, namely the Malolos-Clark Railway Project.

Erick Thohir conveyed that the Philippines' trust in Adhi Karya and PP was manifested in the signing of an understanding in July 2023 witnessed by Philippine President Ferdinand Marcos Jr.

"The Malolos-Clark Railway Project is proof that if the management of BUMN Karya is maintained properly and its governance follows the best standards, then BUMN Karya can perform and provide optimal contributions," said Erick Thohir during a working visit in Manila, Philippines, Thursday ( 11/1/2024).

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ADHI and PP succeeded in winning the work contract which was auctioned using the International Competitive Bidding (ICB) procurement framework standardized by ADB.

According to Erick, this is BUMN Karya's achievement in being able to compete with big international players in the construction sector and become BUMN Karya's capital in participating in international auctions.

Currently, continued Erick, ADHI and PP are in the process of issuing the Phillippine Contractors Accreditation Board (PCAB) or Construction Services Business Letter (SUJK) from the Philippine Government.

Meanwhile, the land acquisition process is also being carried out by the Philippine Government and ground breaking for this project is planned for March 2024.

"Of the 9 work contracts that were auctioned with a project value of 2.75 billion US dollars, the Joint Venture Adhi Karya and PP received 2 professional package contracts," said Erick.

Civil work for this project is a financing collaboration between the Philippine Government and the Asian Development Bank (ADB).

Of the total contract value of 2.75 billion US dollars or the equivalent of Rp. 41.25 trillion, JV ADHI and PP for the two CP projects received a short contract of 560 million US dollars or the equivalent of Rp. 8.4 trillion, with a portion of 51 percent of ADHI and 49 PTPP percent.