Sojitz-Larsen & Toubro JV bags $290mn civil contract for Jakarta's Mass Rapid Transit

Jakarta, Indonesia (Metro Rail Today): Indonesia has awarded the extension project of Jakarta's Mass Rapid Transit (MRT) to Japan's Sojitz Trading house, in collaboration with India's Larsen & Toubro (L&T), for a construction worth $290 million.

Sojitz has secured a contract worth $290 million with MRT Jakarta, the operator of Jakarta's Mass Rapid Transit, to extend the subway system in the congested central area of the Indonesian capital. The project, valued at 45 billion yen, will entail extending the subway system by 5.8 kilometers between the Bundaran HI and Kota stations on the MRT's North-South Line. Sojitz will oversee the engineering, procurement, and installation of MRT facilities, including tracks, signaling, and communications systems.

To execute the project, Sojitz will collaborate with Larsen & Toubro, a renowned construction company from India, along with a local construction firm as subcontractors, as confirmed by a spokesperson from Sojitz to Nikkei Asia. Additionally, Nippon Signal, a Japanese company already involved in Jakarta's existing subway system, will provide signaling equipment for the extension project.

Construction is scheduled to commence in May, with completion targeted by 2030. The initial phase of Jakarta's MRT, operational since 2019, currently spans from the Lebak Bulus station to Bundaran HI, aiming to alleviate the city's traffic congestion and reduce pollution.

The extension project, spanning 5.8 kilometers between Bundaran HI and Kota stations, is funded through a Japanese official development assistance loan facilitated by the Japan International Cooperation Agency, under its Special Terms for Economic Partnership program.

Sojitz's collaboration with Larsen & Toubro extends beyond Indonesia, as the two companies have previously partnered on India's bullet train project. In January, they announced securing orders for the electrification system work covering 508 km of the Mumbai-Ahmedabad high-speed rail route. Additionally, Sojitz recently unveiled a significant project involving the maintenance, repair, and overhaul of railcars in Canada.