China and Indonesia on 16 October 2015 signed a 5.5 billion US dollars deal to build the first high-speed railway in Indonesia following the victory of Beijing in winning the construction project by beating Tokyo.
Japan was long expected to build the railway but China entered the contest in 2015, and Tokyo's bid was rejected in September 2015 after a chaotic bidding process that infuriated the Japanese companies.
The project will be implemented by state-owned China Railway International and a consortium of Indonesian state companies. In the regard, the chairman of state-owned China Railway International, Yang Zhongmin, signed a deal with a consortium of Indonesian state companies to form a joint venture to build the railway.
Highlights of the Deal
• The high-speed railway line will connect the Indonesian capital Jakarta with the mountain-fringed city of Bandung, some 160 kilometres (100 miles) away.
• State-owned China Development Bank will provide 75 percent of the funding, with the rest coming from the Chinese railway company and Indonesian consortium.
• The railway line will not need any financing from the Indonesian government, nor a government guarantee.
• The high-speed train route will cover eight stations from Jakarta to Bandung, and the train will travel at around 250 kilometres (150 miles) an hour.
This high-speed train will make it easier for the public to travel. This major project will also provide major employment opportunities and boost the economy.
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Who: China and Indonesia
When: 16 October 2015