L&T-Sojitz JV bags civil contract for US$1.7billion Jakarta Mass Rapid Transit Phase 2A

Jakarta, Indonesia (Metro Rail Today): Larsen and Toubro Ltd's construction arm, the Railways Business Group, has secured a significant order for the construction of the Jakarta Mass Rapid Transit (MRT) Project Phase 2A, known as Contract Package CP205. This achievement is the result of L&T's enduring partnership with Sojitz Corporation, a Japanese entity. The contract marks L&T's inaugural Engineering, Procurement, and Construction (EPC) Railway Systems Order in the ASEAN region.

The Jakarta MRT Phase 2A involves extending the existing Jakarta MRT Line from Bundaran HI to Kota, covering a distance of approximately 12.5 km and featuring seven underground stations. The project scope includes the procurement and delivery of systems across various domains, following a design and build approach. Key components encompass Trackworks, Overhead Contact System, Substation System, Power Distribution System, Signaling System & Telecommunication Systems, SCADA Facility, Platform Screen Doors, and modifications to existing equipment in the OCC and stations/train sets from Phase-1.

Under Jakarta MRT Phase 2, a total of eight contracts were awarded, including CP 205 for the construction of railway systems and trackworks, which was secured by L&T-Sojitz Corporation JV.

Jakarta MRT Phase 2 is funded by JICA through a soft loan scheme with a 40-year tenure, including a 10-year grace period. The project faced an adjusted cost of Rp26 trillion, up from Rp22.5 trillion, attributed to challenging soil conditions. Construction commenced on March 22, 2021, extending the Red line northwards, and is scheduled to have seven stations over 5.8 kilometers.

While the extension was initially planned to be fully operational by March 2026, challenges in securing bidders for construction and the impact of the COVID-19 pandemic have shifted the target to full operation by 2028.

L&T, concurrently involved in integrated Railway Systems projects for the Mauritius LRT and Dhaka Metro, sees significant opportunities in the ASEAN region's railway development. Increased government budgets for infrastructure projects and plans to expand urban rail systems, combined with growing investor interest, position the company for substantial growth in the coming decade.