Emirates Business 24-7, 29 July 2010

Emaar properties continues to express interest in the Dh2.2 billion ($600 million) Lombok project and the "seriousness of its interest is being assessed", an Indonesian government official told Emirates 24|7.

"Emaar properties continues to express interest in the project, as do investors from other parties, including Abu Dhabi and Ras Al Khaimah. We are currently assessing the seriousness of their interest," Ray pulungan, Aide to the Chairman, Indonesia Investment Coordinating Board (BKpM), said in an e-mailed statement.

The original memorandum of understanding between Emaar and the Indonesian government had simply expired and therefore sanctions or penalties were not applicable.

pulungan did not disclose the names of the other interested parties, saying, "It would be unethical on our part, as talks are still under way."

On July 25, an Emaar spokesperson had told Emirates 24|7 that "it had responded on time and with total commitment to the proposals of the Bali Tourism Development Corporation for the Lombok project".

"We have also provided recommendations on how it intends to proceed with the development of the project," the spokesperson had said.

The Dubai-based developer's response had come after media reports indicated that the Indonesian government had terminated all commitments with Emaar on a mega-tourism project in Lombok, West Nusa Tenggara, after it failed to meet its share of the bargain in developing the project.

The Lombok project will be environmentally friendly and will have more than 17km of natural waterfront with a marina, luxury residences and resorts by five-star hospitality chains.

By parag Deulgaonkar

© Emirates Business 24/7 2010