TY - JOUR
T1 - Financial feasibility of the sunda strait bridge conceptual design using the value engineering method
AU - Berawi, Mohammed Ali
AU - Susantono, Bambang
AU - Miraj, Perdana
AU - Gunawan,
AU - Berawi, Abdur Rohim Boy
AU - Husin, Albert
N1 - Funding Information:
This research is fully supported by grants from National Priority Research Grant-Master plan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) and International Collaboration Research Grant, University of Indonesia.
Publisher Copyright:
© 2014 ISEC Press.
PY - 2014
Y1 - 2014
N2 - Sunda Strait Bridge (SSB) is a mega-infrastructure project offered by the Indonesian government, expected to contribute to national economic growth by bridging economic connectivity between two major islands in Indonesia. At first, SSB construction was offered as a US$10 billion project in 2010. Then in 2011 it was revised into a US$25 billion project with additional scope of work, i.e., industrial area development along the site. Yet it was still unattractive to private investors due to a lack of technical and financial feasibility. Thus, the Value Engineering (VE) approach was used to increase and improve the project’s feasibility by generating innovative ideas. Innovation through additional functions for SSB development is comprised of: 1) development of renewable energy-based power plant by using tidal and wind power; 2) integration of oil and gas pipelines; (3) fiber-optic pipelines; 4) tourism development in Sangiang Island accessed by either road bridge or hanging train; and 5) development of industrial area. The life-cycle cost analysis by IRR and NPV approaches confirmed that SSB development with additional functions increased the internal rate of return of the overall project up to 7.26% and had a positive NPV.
AB - Sunda Strait Bridge (SSB) is a mega-infrastructure project offered by the Indonesian government, expected to contribute to national economic growth by bridging economic connectivity between two major islands in Indonesia. At first, SSB construction was offered as a US$10 billion project in 2010. Then in 2011 it was revised into a US$25 billion project with additional scope of work, i.e., industrial area development along the site. Yet it was still unattractive to private investors due to a lack of technical and financial feasibility. Thus, the Value Engineering (VE) approach was used to increase and improve the project’s feasibility by generating innovative ideas. Innovation through additional functions for SSB development is comprised of: 1) development of renewable energy-based power plant by using tidal and wind power; 2) integration of oil and gas pipelines; (3) fiber-optic pipelines; 4) tourism development in Sangiang Island accessed by either road bridge or hanging train; and 5) development of industrial area. The life-cycle cost analysis by IRR and NPV approaches confirmed that SSB development with additional functions increased the internal rate of return of the overall project up to 7.26% and had a positive NPV.
KW - Fiber-optics
KW - Innovation
KW - Life cycle cost
KW - Life-Cycle analysis
KW - Tourism development
KW - Transportation
KW - Value for money
UR - http://www.scopus.com/inward/record.url?scp=85116472152&partnerID=8YFLogxK
U2 - 10.14455/ISEC.res.2014.133
DO - 10.14455/ISEC.res.2014.133
M3 - Conference article
AN - SCOPUS:85116472152
SN - 2644-108X
VL - 1
SP - A-17
JO - Proceedings of International Structural Engineering and Construction
JF - Proceedings of International Structural Engineering and Construction
IS - 1
T2 - 2nd Australasia and South East Asia Conference on Structural Engineering and Construction, ASEA-SEC-2 2014
Y2 - 3 November 2014 through 7 November 2014
ER -
