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No official confirmation yet of winning Bandung tender: SMRT

Wednesday, September 28, 2016 - 08:44

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Singapore transport operator SMRT Corporation said on Wednesday it has not yet been officially notified that it has won a tender for a rail project in Bandung, Indonesia's fourth-largest city, though there are clear signs that its bid has received the nod from officials.

SINGAPORE transport operator SMRT Corporation said on Wednesday it has not yet been officially notified that it has won a tender for a rail project in Bandung, Indonesia's fourth-largest city, though there are clear signs that its bid has received the nod from officials.

The mainboard-listed company said in a filing to Singapore Exchange (SGX) the consortium it is part of has not yet received any official notification from the West Java city regarding the outcome of the tender evaluation.

The tender, titled "Framework of Investment Construction of Corridor 1 Rail-Based Public Transportation and its Supporting Facilities", is for helping construct a light-rail system in the city.

SMRT had said its wholly owned subsidiary, SMRT International Pte Ltd, and another firm, PT. T-Files Indonesia, had formed a consortium to bid for the tender. The bid was submitted on Sept 9, and the tender closed the same day.

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Said SMRT: "The company wishes to clarify that the consortium has not received official notification of any award of the tender and has not entered into any definitive agreements in relation to the tender."

Bandung mayor Ridwan Kamil seemed to state otherwise.

In a Facebook post last week the mayor, who is popularly known as Emil, wrote in Bahasa Indonesia that the winning bidder for the LRT corridor 1 is SMRT from Singapore. "If there are no obstacles, construction can begin in 2017. Pray for it to go smoothly, and hopefully we'll be able to reduce congestion in Bandung."

Indonesian media reports said President Joko Widodo is yet to issued a decree to construct the light-rail system.

One report quoted Emil as saying that projects worth four trillion rupiah (S$420 million) and the required funding will need the approval of the federal government. The reports quoted Emil as saying that Mr Widodo had promised a subsidy of 51 per cent.

Said SMRT: "Should a definitive agreement be entered into in relation to the tender, the company will, in compliance with the SGX-ST listing rules, make the appropriate announcements."

These announcements depend, however, on whether SMRT remains a listed entity.

On Thursday, shareholders will vote on whether they approve of state investor Temasek Holdings' buyout offer for SMRT. If the vote goes through, November could be the earliest month when SMRT can be delisted.

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