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Samurai_Jerk wrote:I guess this could be Indonesian shenanigans but ...
Indonesia defends rail project after Japan angeredIndonesia defended Thursday the chaotic bidding process for its first high-speed railway after months of mixed messages ended with China being chosen over a furious Japan for the $5-billion project.
Beijing and Tokyo had long been vying to build the line linking the capital Jakarta with the mountain-fringed city of Bandung, some 160 kilometres (100 miles) away.
The contest was one front on Asia's two biggest economies escalating battle for influence across the region.
The winner was expected to be unveiled early last month, only for authorities to turn around at the last minute and announce they were opting for a cheaper, medium-speed train and reopening the bid process.
But on Tuesday, Japan's chief government spokesman said that an Indonesian envoy had been sent to Tokyo to tell him Jakarta had changed its mind again -- and China's original bid for a high-speed train had been accepted.
Russell wrote:I understand that the Indonesians were fishing for tax dollars from the seller. The Chinese were apparently willing to deliver those (+ some bribes) more than the Japanese. I read somewhere that this train will cost the Indonesians zero. Talking about a good deal. At the very least, I am happy that it didn't work out for Japan.
Russell wrote: At the very least, I am happy that it didn't work out for Japan.
Yokohammer wrote:Russell wrote:I understand that the Indonesians were fishing for tax dollars from the seller. The Chinese were apparently willing to deliver those (+ some bribes) more than the Japanese. I read somewhere that this train will cost the Indonesians zero. Talking about a good deal. At the very least, I am happy that it didn't work out for Japan.
It's not that the Indonesians are getting the train free, it's that it won't cost the Indonesian government anything out of their coffers. Normally the government has to pay the difference if the train line doesn't produce the expected returns within a period of time specified in the contract. That's how the Japanese contract was set up. The Chinese contract provides a much looser "pay when the money is available" type scheme. They're not just giving the train to Indonesia.
I'm guessing there are some other shenanigans going on in the background too, but that's the up-front story, and it is still a victory for China. Flexibility is the name of the game, and it is a characteristic that Japan needs to work on a bit.
kurogane wrote:Russell wrote: At the very least, I am happy that it didn't work out for Japan.
Any good reasons to think that, or just having a Matsuki Moment? Not that there's anything wrong with the latter, or neon speedos, FTM
The real problem with Chinese trains is that they're Chinese, which tends to lead to mass deaths, but Jakarta could probably use a bit of a cull from what I have read.
[...]
The back story was informatively told in a Japanese language article dated September 22 on the Toyo Keizai Online site. The article appeared after the Indonesian government had announced on September 3, to the surprise of everyone [...] that it was rejecting both of the “final” proposals that had been received after frantic jockeying, sweetening, and maneuvering for advantage by Japan and China.
“Seven years of Japanese efforts have come to nothing,” began the article. Planning of project–a high speed (300 kms/hr) rail line extending 730 kilometers across the island of Java from Jakarta to Surubaya–began in earnest in 2009 with a Japanese government-sponsored feasibility study.
The study concluded that commercial feasibility–in terms of highest expected demand from passengers–was strongest for the 144 kilometer section between Jakarta and Bandung. Having performed the study, and fully confident in the world-beating quality and reliability of Japan Rail’s Shinkansen technology and knowhow, Japan expected to get the project mandate.
Japan’s project plan called for a five year construction period, including a full one year trial operation period. If construction were to start in 2018 the line would be ready to take passengers in 2023. Total cost would be some Rupiah 64 trillion (JPY 534.6 billion, or $4.5 billion).
The Japanese government operating through JICA (the Japanese International Cooperation Agency) would finance 75% of the cost with a 0.1% long term yen loan (terms and conditions in conformity with international convention for concessionary financing). The remaining 25% would have to be raised by the Indonesian government and private enterprises.
Importantly, Japan’s concessionary loan would–in accordance with international conventions for official government lending–require an Indonesian government guarantee.
Then, in October 2014, as the Japanese agencies and companies prepared for the project, something happened in Indonesia: the swearing in as president of Joko Widoko.
Campaigning for office Joko had called for greater infrastructure investment, and it was taken for granted that he was a supporter of the Java high speed rail project. However, Joko had campaigned as a “man of the people” whose priority would be improving welfare for Indonesia’s common and rural people over the more affluent people in the big cities.
In January this year the Joko government essentially stopped preparations for the high-speed rail project. In March, Joko traveled to Tokyo and Beijing.
In Tokyo March 22-25 Joko with Prime Minister Abe and other officials. Joko got a commitment for Japanese yen loan support for improving Jakarta’s municipal rail network, but no progress was made on resolving issues with the Jakarta-Bandung high-speed rail project.
Then, on March 26, Joko visited Beijing and met Chinese president Xi Jinping. Xi publicly announced support for the Indonesian high speed project and the two governments signed a memorandum specifying China’s interest in the Jakarta-Bandung line.
Well before the Joko-Xi meeting China had entered competition for the project. China’s proposal was for a total project cost of Rupiah 74 trillion (JPY 618.2 billion, $5.2 billion). The cost was higher than Japan’s, but China committed to financing the entire amount at an interest rate of 2%. Moreover, the project would be completed in three years–meaning taking passengers in 2018.
Indonesia had hired an investment bank to evaluate the Chinese and Japanese proposals. What seemed to matter most, however, was Indonesia’s increasingly firm demand that the project should not even be included in the government’s budget and insistence that no government guarantee would be given.
The high costs of project proposals were also declared unacceptable. When the cost was determined to be associated with the proposed 300 kms/hour speed of the line, Indonesia officials offered that a speed of 200-250 kms/hour would also be acceptable, expecting therefrom to cut construction costs by 30-40%.
That China was awarded the project and Japan rejected seems to owe mainly to China’s willingness to accept the financial risk of the project (i.e., to forego an Indonesian government guarantee and also, thereby, possibly to finesse international ODA norms) and of Japan’s inability or unwillingness to do so.
The Toyo Keizei piece makes the point that such projects’ risks are not small. Taiwan is an example. Taiwan’s high-speed rail line enjoys relatively heavy business passenger traffic, which allows relatively expensive ticket prices. But the high prices seem to have discouraged non-business passengers, such that ridership numbers have fallen short of forecasts and revenues have proven insufficient to cover debt service requirements.
Compared with Taiwan, Indonesia is a very poor country. Given that business traffic will be relatively limited, ticket prices will have to be set low to be affordable for average citizens (and to avoid political backlash). Generating sufficient cash flow for debt service looks like a formidable challenge.
That China is willing to take the risk speaks volumes about how China views infrastructure aid in the Asian region. According to press reports China sweetened its offer in other ways as well, including committing to establish a joint venture with Indonesian firms to produce rolling stock for high-speed rail, electric rail, light rail systems, not only for Indonesia, but also for export to other Asian countries; to transfer related technology; and also to renovate and rebuild train stations.
Having benefitted immensely from Japan-China competition in one project, Indonesia is hoping to keep Japan (and of course also China) interested in the next ones. Sofyan was careful when delivered the negative verdict to assure Japan that there are many other projects for which Japanese technology and aid will be warmly welcomed.
Intriguingly, so far China’s Ministry of Foreign Affairs has not officially reacted to China’s winning of the project. Does this mean that the mandate has not officially been awarded? Is Indonesia holding out for more concessions?
That would seem unlikely. The project seems to be China’s. Whether it will a “successful” from a conventional commercial perspective is unknowable. But in terms of China’s economic diplomacy, it is certainly a deeply meaningful and significant advance. While for Japan, it is an occasion for deep rethinking of policies and strategies in Asia.
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matsuki wrote:Will be interesting to see if China can deliver on time, how it performs, and if it ultimately is a success....cause if any 3 of those are fucked, I doubt China will win the next bid.
Coligny wrote:matsuki wrote:Will be interesting to see if China can deliver on time, how it performs, and if it ultimately is a success....cause if any 3 of those are fucked, I doubt China will win the next bid.
Dood, Vietnam is in talk to buy Japanese nukaplants...
Hong Kong (AFP) - A homeless woman lay dead at a Hong Kong McDonald's restaurant for hours surrounded by diners who failed to notice her, sparking concern over the city's "McRefugees".
The woman, who police say was between 50 and 60, was found dead Saturday morning and has been held up as an example of the growing number of homeless people who seek shelter in 24-hour restaurants.
"Officers arrived upon a report from a female customer (that a person was found to have fainted)," police said in a statement.
"The subject was certified dead at the scene."
Local media said the woman was slumped at a table, 24 hours after she first entered the restaurant in the working class district of Ping Shek.
She had not moved for seven hours before fellow diners noticed something was wrong, according to Apple Daily, citing CCTV footage.
Samurai_Jerk wrote:Woman sits dead for hours in Hong Kong McDonald'sHong Kong (AFP) - A homeless woman lay dead at a Hong Kong McDonald's restaurant for hours surrounded by diners who failed to notice her, sparking concern over the city's "McRefugees".
The woman, who police say was between 50 and 60, was found dead Saturday morning and has been held up as an example of the growing number of homeless people who seek shelter in 24-hour restaurants.
"Officers arrived upon a report from a female customer (that a person was found to have fainted)," police said in a statement.
"The subject was certified dead at the scene."
Local media said the woman was slumped at a table, 24 hours after she first entered the restaurant in the working class district of Ping Shek.
She had not moved for seven hours before fellow diners noticed something was wrong, according to Apple Daily, citing CCTV footage.
Russell wrote:Samurai_Jerk wrote:Woman sits dead for hours in Hong Kong McDonald'sHong Kong (AFP) - A homeless woman lay dead at a Hong Kong McDonald's restaurant for hours surrounded by diners who failed to notice her, sparking concern over the city's "McRefugees".
The woman, who police say was between 50 and 60, was found dead Saturday morning and has been held up as an example of the growing number of homeless people who seek shelter in 24-hour restaurants.
"Officers arrived upon a report from a female customer (that a person was found to have fainted)," police said in a statement.
"The subject was certified dead at the scene."
Local media said the woman was slumped at a table, 24 hours after she first entered the restaurant in the working class district of Ping Shek.
She had not moved for seven hours before fellow diners noticed something was wrong, according to Apple Daily, citing CCTV footage.
Always thought that McDonalds was bad for health...
Samurai_Jerk wrote:Russell wrote:Samurai_Jerk wrote:Woman sits dead for hours in Hong Kong McDonald'sHong Kong (AFP) - A homeless woman lay dead at a Hong Kong McDonald's restaurant for hours surrounded by diners who failed to notice her, sparking concern over the city's "McRefugees".
The woman, who police say was between 50 and 60, was found dead Saturday morning and has been held up as an example of the growing number of homeless people who seek shelter in 24-hour restaurants.
"Officers arrived upon a report from a female customer (that a person was found to have fainted)," police said in a statement.
"The subject was certified dead at the scene."
Local media said the woman was slumped at a table, 24 hours after she first entered the restaurant in the working class district of Ping Shek.
She had not moved for seven hours before fellow diners noticed something was wrong, according to Apple Daily, citing CCTV footage.
Always thought that McDonalds was bad for health...
At least the customers realized she was dead before McDonald's could use her for McNuggets.
matsuki wrote:I wonder how long she survived on the free ketchup and mustard packets...
Thrill-seeking tourists in China got more than they bargained for when cracks appeared in a glass-bottomed walkway suspended 1,080 meters (3,540 foot) over a canyon, reports said.
Images showing small cracks in the "skywalk" built around a mountain, which opened just two weeks ago, spread on social media along with doubts over its safety.
"When I was almost at the end (of the walkway), there was a sudden loud bang and a tremor beneath my feet," the state-run China Net cited one woman as saying on Tuesday.
The cracks resembled "winter frost on a window pane", the report said, and were apparently caused by a dropped stainless steel cup.
But the incident at Yuntai mountain in the northern province of Henan "doesn't affect safety", park officials were quoted as saying.
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Samurai_Jerk wrote:Are Chinese bureaucrats taking over? I've noticed quite a few working at the kuyakusho on recent visits plus I had to make a couple of trips to immigration this month and two of the three people I spoke with were Chinese.
A former stylist in China robbed men he’d met online by dressing up as a beautiful woman, luring them to a hotel and drugging them, police said.
The 48-year-old, surnamed Tang, pretended to be a well-off, divorced woman who was just “looking for a good time.”
He’d entice men with sexy snaps over social media to hotel rooms in Chengdu, Sichuan Province.
But once they were together, he’d slip them sleeping pills and make off with their cash and valuables.
Takechanpoo wrote:in london
they do the same things in ginza and other j-places.
chinese the wild animals
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