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The United Arab Emirates (UAE) has agreed to participate in a
massive project of constructing ports, double-track railways, power
plants and supporting infrastructure in South Sumatra.
As per an agreement signed Monday, Ras Al-Khaimah Investment Authority
(Rakia) -- an investment body owned by the UAE government, will invest
US$1.5 billion in the project that in total could cost around $9
billion.
The Rakia fund in particular would be used to construct a 90-kilometer
two-lane railway from Tanjung Enim to Tanjung Api-Api and other
supporting infrastructure, according to Khater Massaad, Rakia president
director.
Tanjung Api-Api is where the port will be located.
"We are interested to take part of this big development project because
of the natural resources like coal, gas and oil, that the province
has," added Khater.
South Sumatra Governor Syahrial Desman welcomed the agreement as the
project was so massive that the province could not cover all the costs
by itself.
"We need at least Rp 80 trillion funds for this project. We can't just
count on our regional budget, which is only Rp 2.5 trillion for this
year," Syahrial said.
"Currently, we have 12 domestic and foreign investors, including the
UAE, who have pledged to participate in our infrastructure development
plan," he said, without elaborating.
South Sumatra is the host to one of the country's large coal reserves
and agri-business operations.
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