JAKARTA: The government will provide support in form of viability gap fund (VGF) for Sunda Strait Bridge, after the mega project was considered financially infeasible.
"To improve the feasibility, the government will provide support in form of viability gap fund [VGF]," said Deputy of Infrastructure and Facilities at Ministry of National Development Planning (Bappenas) Dedy S Priatna today, Wednesday, May 9, 2012.
Support will be given in form of concession in the development of the area of Banten and Lampung.
The development of the region, according to Dedy, will provide additional value to the consortium as the project will cost IDR100 trillion and the investment will be fully paid by a consortium.
According to him, the amount of government support to the consortium will be known after the completion of the feasibility study which is currently in preparation stage.
The result of the study will show feasibility level and required land for the development of the bridge.(t03/aph)