In a space of six months, there have been two proposals to build a mega connection between Indonesia and Malaysia by the Malaysian side. The response from Indonesia for both projects is lukewarm at best.
First, it was the proposal to build a Malacca-Dumai bridge by the Malacca state government made last September. It is obvious Indonesia is not that keen on this project costing RM44.3 billion (US$13.306 billion). Jakarta said the idea was appealing, but the project was not a priority. Indonesia was then and still is grappling with a slowing economy. That is as good as a no from Indonesia. The bridge idea is not new.
In 1996, then Prime Minister Tun Dr Mahathir Mohamad had proposed that such a bridge be built. The closest point between the two countries along the straits was between Malacca and Dumai. Due to the Asian financial crisis, the project was shelved.
A couple of weeks ago, the Johor state government proposed that an undersea tunnel be built between Karimum Island in Riau and Kukup in Johor. The 17.5km Johor Riau undersea tunnel will be the first of its kind in the region. Johor government has commissioned Technology University of Malaysia (Universiti Teknologi Malaysia) and Pelalawan Regency in Riau Province to do a feasibility study.
Preliminary study shows that the project will cost RM15 billion (US$4.5 billion). This is far less than the proposed Malacca-Dumai bridge that would cost RM44.3 billion (US$13.306 billion). It will take between three to five years to complete. Technology University of Malaysia experts said building a tunnel would hardly affect the movement of vessels along the Malacca Straits, unlike the construction of a bridge because of the amount of work done above sea surface.
More importantly, the expert also said that the Johor Riau link would have a higher economic impact on Riau and Johor. This is where doubts have surfaced.
On the Malaysian side, the tunnel link could be a catalyst in the economic growth of the area around it and the corridor leading to the main cities. Kukup is a fishing town but it is in a coastal area and is located 69 km away from Johor Bahru and Iskandar. A little further down is Singapore. There is some potential for new townships and industries to emerge, and some possibility that there will be traffic from Malaysia.
But this may not be the case for Karimun Island. The island is far from other major cities and economic growth areas and does not have the infrastructure to support the Johor Riau tunnel. There is a chance that this tunnel will be underused and a waste considering the amount of money that will be used.
Which probably explains why the Riau government has been silent on this. Riau is the second richest province built on thriving petroleum and palm oil industries. Johor, is also rich with palm oil. But the economic activities in these two areas are not big enough for a tunnel of this size and potential. A project of this magnitude should be linking huge economic centres like Singapore and Jakarta, perhaps.
Which brings us to the issue of funding. China has always shown interest in mega projects in this region. For the Malacca-Dumai bridge project, then Malacca chief minister said funding will come from China companies. Presently, a China company is building the second bridge project in Penang that costs RM4.5 billion (US$1.36 billion). The bridge will be completed end of this year.
The Penang government has awarded the contract to build another mega project to a China company: the RM8 billion (US$2.4 billion) undersea tunnel and roads and bypasses from the island to mainland.
While it appears that finances for the Johor Riau tunnel project may not be an issue, many factors need to be considered. One of the factors is whether construction of such mega infrastructure projects are being done with the hope that these projects will facilitate and fuel economic and social development or if they are constructed just so that private companies can rake in profits without a proper cost benefit analysis.
Let us see what the outcome of the feasibility study is.
Source from ~ http://www.establishmentpost.com/tunnel-vision-malaysia-still-trying-get-indonesia-interested-link/
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