VZCZCXRO3130
OO RUEHCHI RUEHDT RUEHHM
DE RUEHJA #1735/01 1731151
ZNR UUUUU ZZH
O 221151Z JUN 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5202
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/USDA FAS WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHKO/AMEMBASSY TOKYO 0557
RUEHHE/AMEMBASSY HELSINKI 0895
RUEHBY/AMEMBASSY CANBERRA 0846
RUEHTC/AMEMBASSY THE HAGUE 3327
RUEHSM/AMEMBASSY STOCKHOLM 2059
RUEHBS/USEU BRUSSELS
RHHMUNA/USCINCPAC HONOLULU HI
RUEAIIA/CIA WASHDC
RHHJJAA/JICPAC HONOLULU HI
RUEKJCS/JOINT STAFF WASHDC
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 001735 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
AIDAC 
 
DEPT FOR EAP/MTS AND EB/IFD/ODF 
TREASURY FOR IA Q BAUKOL 
USDA FOR FAS/EC/MCHAMBLISS 
NSC FOR MORROW AND MELINE 
USAID FOR ANE/EAA, WARD, CHILES AND ROSEN 
 
E.O. 12958: N/A 
TAGS: EAID ECON PGOV PREL SENV KCOR ID
SUBJECT: THE AWARD OF THE PRIME CONTRACT FOR THE USG 
QSIGNATUREQ HIGHWAY PROJECT IN ACEH 
 
 
Summary 
 
On June 21 the United States Agency for International 
Development (USAID) announced the award of the Aceh Road 
Reconstruction prime contract for its West Coast Highway to 
a partnership of Ssangyong Engineering and Construction 
Company, Ltd. of South Korea and PT. Hutama Karya of 
Indonesia. The announcement occurred at the site of existing 
construction near Banda Aceh, and was presided over by USAID 
Mission Director William M. Frej in the presence of newly- 
elected Aceh governor, Irwandi Yusuf. In his remarks, 
Governor Irwandi was generous in his praise of this 
Qsignature projectQ, the longest component of the USGQs 
tsunami reconstruction program. In particular, Governor 
 
SIPDIS 
Irwandi stated his gratitude Qfor USAIDQs continued 
commitment to remain our strategic partnerQ as the people of 
Aceh rebuild. Moreover, the governor pledged to sustain Qa 
solid working relationship with USAID and to provide 
whatever support is necessary to achieve a quality final 
product.Q The same level of gratitude was expressed by 
Kuntoro Mangkusubroto, the Director of the Aceh 
Reconstruction Agency (BRR), which is USAIDQs primary 
counterpart in the reconstruction of Aceh. At a USAID dinner 
on June 20, Director Kuntoro expressed his continuing 
gratitude for USAIDQs unwavering commitment to Aceh in 
general and the road project in particular. As a result of 
the strong collaborative relationship between the USG and 
these Aceh government entities, difficult land acquisition 
issues have been resolved in record time, thereby enabling 
USAID to commence with much needed reconstruction.  END 
SUMMARY. 
 
ACEH RECONSTRUCTION AGENCY (BRR) EXPRESSES GRATITUDE FOR USG 
SUPPORT AND HOPES FOR FUTURE 
 
In the dinner on June 20, BRR Director Kuntoro expressed his 
strong support and gratitude for all of the sustained 
support from the USG. In particular, he thanked USAID for 
its timely support at the creation of BRR over two years 
ago, when USAID supplied critical expatriate advisors. 
Second, he was thankful for the USG role in supporting BRRQs 
agenda over the past two years, thereby ensuring the 
completion of BRRQs mandate by April 2009. Third, he was 
grateful for USAIDQs role in assisting BRR in the transition 
of its assistance to the provincial government. Fourth, 
Director Kuntoro was supportive of further USAID assistance, 
as the priorities of the province move from reconstruction 
to post-conflict social and economic reintegration. Fifth, 
he expressed hope that other donors will meet the need of 
secondary roads that support the USAID road, as this will 
enhance prospects for sustained economic growth. Finally, he 
mentioned the importance of maintenance to ensure the 
sustained functioning of economic infrastructure. While the 
USAID road is an example, so are the other roads, ports and 
markets that are being built throughout Aceh. 
 
NEW CONTRACT WILL ENSURE ROADQS TIMELY COMPLETION 
 
The USAID supported Banda Aceh Q Calang road project is the 
largest single project in Aceh and will help improve 
communication along the west coast of Aceh Province. A 
contract was signed for an amount of $108 million on June 
19, 2007. This is the final contract for the completion of 
all road construction. The scope of this project is 
approximately 155 kilometers (approximately 96 miles) and 
 
JAKARTA 00001735  002 OF 002 
 
 
extends from Banda Aceh to the west coast city of Calang. 
This construction project will take approximately 33 months 
to complete, with estimated completion in early 2010. 
Ssangyong is expecting to complete its mobilization and 
begin construction within three months. Immediately after 
the announcement of the award on June 21, 2007 by USAID 
Mission Director William M. Frej, a follow up press 
conference was held. There was great interest in the new 
contract and significant and favorable press coverage. 
 
The significance of this road cannot be underestimated. As 
Mission Director Frej pointed out, for the people of Aceh, 
this road will promote the kind of economic development that 
will be key to sustaining a peaceful Aceh. As construction 
expands along the route, employment opportunities will 
increase for local villagers. Meanwhile, USAID contractors 
are building local capacity through training in construction 
and project management. 
 
Conclusion 
 
Governor Irwandi summarized the significance of the road 
best when he concluded, Qthe West Coast Highway will stand 
as a living symbol of the generous support from the American 
people channeled through our friends, colleagues and 
neighbors at USAID.Q The USG was one of the first countries 
to respond to the immediate needs stemming from the horrific 
tsunami of December 26, 2004. USAID continues to respond to 
 
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the long-term development needs of this promising province 
at the western end of the Indonesian archipelago. 
 
Heffern