Wika Signs $830m Construction Project in the Philippines

Wijaya Karya has signed up for a $834 million expressway project in the Philippines, marking the state-controlled construction company's latest expansion in the Southeast Asia country. (Antara Photo/Yulius Satria Wijaya)

By : JG | on 2:22 PM May 31, 2018
Category : Business, Corporate News

Jakarta. Wijaya Karya has signed up for a $834 million expressway project in the Philippines, marking the state-controlled construction company's latest expansion in the Southeast Asia country.

The company, better known as Wika, signed a memorandum of understanding with the Citra Consortium, which holds toll-road concessions. The consortium includes Indonesian contractors Citra Marga Nusaphala Persada, Citra Persada Infrastruktur and a local company, CLGP Philippine Holdings.

Wika will work on the Manila-Taguig Expressway, comprising an 18.18-kilometer overpass alongside the Pasig River. The toll road will serve as a link between the third stage of the Metro Manila Skyway and the Metro Manila Expressway that connects Pasig, Makati and Manila.

"We are confident the deal between Wika and Citra Consortium will support the company's business portfolio improvement in the Philippines," Wika president director Tumiyana said in a statement on Wednesday (30/05).

In addition to the Manila-Taguig Expressway project, Wika has so far started reconstructing of the Clarin Bridge in Bohol. The bridge, which forms part of the Bohol Circumferential Road, collapsed during a 7.2-magnitude earthquake that struck the area in 2013. Wika teamed up with a local firm, VT Lao Construction, for the 445.8 million-peso ($8.5 million) bridge reconstruction project.

The 104-meter bridge, targeted for completion in October next year, is expected to facilitate access to tourist areas, as well as accelerate the flow of goods and services in Bohol Province.

Destiawan Soewardjono, operations director at Wika, said the company is expecting more overseas projects in the future.

"Our selection as contractors in infrastructure projects in several countries, such as the Philippines, Malaysia, Myanmar and East Timor, shows the quality and competitiveness of Indonesia's state-owned enterprises are solid," he said.

The company has set aside Rp 37 trillion ($2.7 billion) for capital expenditure this year, more than triple that of last year. It will use the funds for expansion, including in the areas of industrial estates, power plants and toll roads.

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