Bali’s airport expansion is going ahead — but with a reduced budget following analysis and verification of the project costs by the national government.
State airport operator PT Angkasa Pura I reduced its estimate of the cost by Rp400 billion (US$44.5 million) after the audit.
“The State Development Finance Comptroller [BPKP] has completed its analysis and verification of the airport expansion, so we can reduce the estimated renovation cost from Rp 2.3 trillion to Rp 1.94 trillion (US$256 million to $216 million),” State-Owned Enterprises Minister Mustafa Abubakar said.
Mustafa said the reduction came from changes to a fuel depot construction project that would be taken over by state oil and gas company Pertamina. The depot will cost an estimated Rp330 billion ($3.3 million) to build. He said that the company would spend more to procure equipment such as X-ray machines for the airport.
He also said Rp1.25 trillion ($139 million) of the expansion’s budget would be financed by loans from state banks while PT Angkasa Pura I would meet the Rp694 billion ($77.2 million) balance.
“We are still considering loans from foreign investors such as China, but we will find the best financing mechanism for the project,” he said.
Work is scheduled to start in October and is targeted to be completed in September 2013 in advance of the Asia Pacific Economic Cooperation forum’s Bali summit.
Most of the project cost is for terminal expansion in which the domestic and international terminals will switch roles and grow.
The new international terminal will expand to 120,000 square meters. The management also plans to build a 39,000-square-metre three-storey car park for 1,500 vehicles.
By 2013, the airport’s terminals will cover 190,000 square meters and be able to handle 20 million passengers a year.
The airport recorded 76,797 domestic and international flights carrying 9,625,433 passengers in 2009, up from 43,797 flights and 4,443,856 passengers in 2000.