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HPRP Updates

HPRP was Appointed to Develop an Outline Business Case (OBC) for the Kuala Tanjung International Hub Port Project, North Sumatera

August 26, 2016

As part of the national master plan to develop the National Maritime Shipping Lane (the Marine toll) within the largest archipelago in the world, the Indonesian Government has decided to transform the ports of Kuala Tanjung and Bitung into International Hub Seaports, which flank the western and eastern parts of the country. To achieve these objectives, the Committee for the Acceleration of Priority Infrastructure Provisioning (Komite Percepatan Penyediaan Infrastruktur Prioritas or KPPIP) included the Kuala Tanjung International Hub Sea Port project in North Sumatra as one of its priority projects. With an estimated construction cost of IDR 30 trillion, the project is targeted to be implemented no later than 2019.

One of KPPIP’s primary tasks is to support the owners of the priority projects (the relevant ministries or local governments) in developing high-quality Pre-Feasibility Studies or Outline Business Cases (OBC) which are acceptable or bankable (feasible for funding) internationally. In the development of the Kuala Tanjung port, the OBC is aimed at carrying out a thorough evaluation of the current status and to study the potential in the development of the port as a point of contact of reliable maritime transport and serving as a connection lane between islands and national and international destinations, as well as a transshipment port.

In this major project, HPRP is a member of a consortium along with several other institutions from various relevant fields who were appointed to develop a Pre-Feasibility Study / Outline Business Case (OBC). Led by Partner Giovanni Mofsol Muhammad and assisted by Michael A. Kaihatu, E. Paramitha Sapardan, and Abraham Sylvester Harryandi, the HPRP team is required to provide legal advice and assistance in regulations and institutional related matters. With the Coordinating Ministry for Economic Affairs as the assigning party, this engagement began on July 15, 2016 and is expected to be completed by December 31, 2016.