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Lahat and Kertapati in South Sumatra, Indonesia (PPP Infrastructure)

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Lahat and Kertapati in South Sumatra, Indonesia (PPP Infrastructure) Republic of Indonesia Ministry of Transportation Directorate General of Railways Preparatory Survey on Capacity Expansion of Railway Line - Lahat and Kertapati in South Sumatra, Indonesia (PPP Infrastructure) Final Report (Full Version) August 2012 Japan International Cooperation Agency Sojitz Corporation Japan Transportation Consultants, Inc. OS CR (3) 12-039 Table of Contents Page Chapter 1 Background of the Project 1.1. Summary of Indonesia --------------------------------------------------------------------- 1- 1 1.1.1. Outline of the Country ---------------------------------------------------------------- 1- 1 1.1.2. Economic, Industrial, and Fiscal Conditions ----------------------------------- 1- 9 1.1.3. Development Subjects and Governmental Development plan ----------- 1-12 1.1.4. PPP Policy and Regulations ------------------------------------------------------- 1-16 1.1.5. Environment Related Laws -------------------------------------------------------- 1-19 1.1.6. Laws and Regulations for Foreign Investment ------------------------------- 1-21 1.2. Indonesian Railway Policies ------------------------------------------------------------ 1-24 1.2.1. Outline of the Railway Sector ----------------------------------------------------- 1-24 1.2.2. Situation and Problems of Existing Infrastructure ---------------------------- 1-34 1.2.3. Railway Tariff Policy ----------------------------------------------------------------- 1-37 1.2.4. Development Plan of the Government ------------------------------------------ 1-39 1.2.5. Government’s Policy of Financial Resource for Railway Development ------ 1-45 1.2.6. Status of Railway Projects being Implemented under PPP Scheme --- 1-46 1.3. Energy Policy in Indonesia -------------------------------------------------------------- 1-50 1.3.1. Outlook of International Energy Market ----------------------------------------- 1-50 1.3.2. Situation in Indonesia --------------------------------------------------------------- 1-51 1.3.3. Development Subject and Government Development Plan --------------- 1-55 1.4. South Sumatra Province ----------------------------------------------------------------- 1-57 1.4.1. Summary of the Region ------------------------------------------------------------- 1-57 1.4.2. Environment of the Project Area ------------------------------------------------- 1-58 1.4.3. Position under National Development Plan ------------------------------------ 1-59 1.4.4. Future Development Plan ---------------------------------------------------------- 1-59 Chapter 2 Project Rationale 2.1. Coal Industry in South Sumatra Province -------------------------------------------- 2- 1 2.1.1. Overview --------------------------------------------------------------------------------- 2- 1 2.1.2. Development Plan and Agenda --------------------------------------------------- 2- 5 2.1.3. Private Sectors Initiatives ----------------------------------------------------------- 2- 8 2.2. Railway in South Sumatra Province -------------------------------------------------- 2-10 2.2.1. Present Situation and Problem --------------------------------------------------- 2-10 2.2.2. Railway Development Funds and Provincial Government ---------------- 2-10 2.2.3. Railway Tariff and Provincial Government ------------------------------------- 2-11 2.3. Justification of the Project --------------------------------------------------------------- 2-12 2.3.1. Priority and Requirement of the Project ---------------------------------------- 2-12 2.3.2. Concerns by Private Investors on the Project -------------------------------- 2-13 2.3.3. Involvement in Project by Other Institutions of Relevance ---------------- 2-14 2.3.4. Consistency with Government Railway Plan and Law --------------------- 2-16 2.4. Necessity of PPP Scheme --------------------------------------------------------------- 2-17 Chapter 3 Project Scale Formation 3.1. Demand Forecast for Target Railway Line and Section -------------------------- 3- 1 3.1.1. Existing Condition of Land Transportation in South Sumatra Province -- 3- 1 3.1.2. Target and Methodology of Demand Forecast ------------------------------- 3-18 3.1.3. Demand Forecast of Coal Transportation -------------------------------------- 3-20 3.1.4. Demand Forecast of Freight and Passenger Transportation other than Coal -------------------------------------------------------------------------------------- 3-27 3.2. Tasks to be investigated to Determine Facility Size ------------------------------ 3-32 3.2.1. Necessity of Existing Facilities Improvement for Transport Capacity Expansion ------------------------------------------------------------------------------ 3-32 3.2.2. Assets of SPC ------------------------------------------------------------------------- 3-35 3.2.3. Necessity for Loading/ Unloading Facility Construction -------------------- 3-38 Chapter 4 Project Planning 4.1. Review of Planned Construction Site and Existing Facilities -------------------- 4- 1 4.1.1. Current Condition of Track Structure and Track Material ------------------- 4- 4 4.1.2. Present Condition of Civil Structures --------------------------------------------- 4- 8 4.1.3. Geological Condition ---------------------------------------------------------------- 4-13 4.1.4. Electric Power, Signal, and Telecommunication ----------------------------- 4-16 4.1.5. Coal Loading/ Unloading Facilities ----------------------------------------------- 4-19 4.2. Technical Measures to Demand Forecast ------------------------------------------- 4-22 4.2.1. Technical Challenges to Determine the Project Size ----------------------- 4-22 4.2.2. Technical Options for Transport Capacity Expansion ---------------------- 4-24 4.3. Operation Plan ------------------------------------------------------------------------------ 4-26 4.3.1. Precondition ---------------------------------------------------------------------------- 4-26 4.3.2. Run Curve ------------------------------------------------------------------------------ 4-30 4.3.3. Rolling Stock Operation Scheduling Plan -------------------------------------- 4-32 4.3.4. Rolling Stock Planning -------------------------------------------------------------- 4-33 4.4. Proposal of Facility Scale ---------------------------------------------------------------- 4-35 4.4.1. Site Condition and Technical Problem ------------------------------------------ 4-35 4.4.2. Project Size Determining Policy -------------------------------------------------- 4-46 4.4.3. Points to be considered for the Facility Specification ----------------------- 4-50 4.5. Overview of the Design Plan ------------------------------------------------------------ 4-53 4.5.1. Layout Plan ---------------------------------------------------------------------------- 4-53 4.5.2. Track Planning ------------------------------------------------------------------------ 4-66 4.5.3. Infrastructure Plan -------------------------------------------------------------------- 4-69 4.5.4. Station and Signal Station Plan --------------------------------------------------- 4-85 4.5.5. Electrical Power and Mechanical Plan ------------------------------------------ 4-85 4.5.6. Signaling Plan ------------------------------------------------------------------------- 4-86 4.5.7. Telecommunication Plan ----------------------------------------------------------- 4-87 4.5.8. Rolling Stock Plan -------------------------------------------------------------------- 4-89 4.5.9. Rolling Stock Depot Planning ----------------------------------------------------- 4-94 4.5.10. Coal Loading/ Unloading Plan --------------------------------------------------- 4-95 Chapter 5 Project Implementation Plan 5.1. Construction Plan --------------------------------------------------------------------------- 5- 1 5.1.1. Site Condition --------------------------------------------------------------------------- 5- 1 5.1.2. Conditions for Construction Planning -------------------------------------------- 5- 2 5.1.3. Construction Method ----------------------------------------------------------------- 5- 5 5.1.4. Construction Guidelines ------------------------------------------------------------- 5- 9 5.2. Implementation Schedule ---------------------------------------------------------------- 5-13 5.2.1. Implementation Schedule for the 1st Stage ------------------------------------ 5-16 5.2.2. Implementation Schedule for the 2nd Stage ----------------------------------- 5-17 5.2.3. Implementation Schedule for the 3rd Stage ------------------------------------ 5-18 5.3. Procurement Package of Materials and Equipment ------------------------------ 5-19 5.3.1. Division into Procurement Packages -------------------------------------------- 5-19 5.3.2. Opportunity for Japanese Firm ---------------------------------------------------- 5-25 5.4. Project Cost Estimation ------------------------------------------------------------------ 5-29 5.4.1. Project Cost of the 1st Stage ------------------------------------------------------- 5-30 5.4.2. Project Cost of the 2nd Stage ------------------------------------------------------ 5-30 5.4.3. Project Cost of the 3rd Stage ------------------------------------------------------ 5-31 5.4.4. Project Cost to Address Super Long-Term Issues -------------------------- 5-33 5.5. Consultant Employment Plan ----------------------------------------------------------- 5-34 5.5.1. Scope of the Work -------------------------------------------------------------------- 5-34 5.5.2. Implementation Schedule of Consulting Services
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