Subject: JP: PAL wins tender to build ship for East Timor

JP: PAL wins tender to build ship for East Timor

JAKARTA (JP): State-owned, Surabaya-based ship builders PT PAL, the country's largest, has won an international tender to build a Roll-on-Roll-off ferry for East Timor financed by the German Development Bank (KfW), according to a press release from the bank.

KfW did not specify the cost to build the vessel, but said the total of its grant for the purchase of the vessel, the extension of harbor facilities at three landing sites and the construction of maintenance facilities was 5.7 million euros (approximately US$7 million).

"The financing agreement between KfW and the East Timor government was signed on June 25, while the contract with PAL will be signed on Thursday in Dili," KfW said in the statement.

The RoRo ferry will travel between Dili, the Oecussi enclave and Atauro island and can transport up to 300 passengers as well as vehicles, general cargo and farm animals.

The ferry will be quite helpful for the inhabitants of Oecussi who prefer sea transportation to Dili instead of using the road connection (through western Timor in Indonesia) for economic and safety reasons, KfW said.

Hence, the development of the maritime transport service, starting with the ferry service between Dili, Oecussi and Atauro, is important to provide a safe and affordable transport link, a prerequisite for economic development and poverty alleviation in the country, KfW said. (jsk/nvn)

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