REPUBLIKA.CO.ID, SURABAYA -- The Surabaya city government in East Java is set to sign a Memorandum of Understanding (MoU) with state railway company PT Kereta Api Indonesia (PT KAI) on the development of a tram network later this month.

Based on the MoU, PT KAI will be entirely responsible for the project, including its funding that is projected to amount to Rp2.2 trillion, secretary of the Surabaya city government, Hendro Gunawan, said here on Tuesday.

The city government will only facilitate all kinds of licensing, he added.

"Everything is ready. We will complete the final draft of the MoU in a week, before it is signed," Gunawan affirmed.

Moreover, he stated that Mayor of Surabaya Tri Rismaharini had also met with Transportation Minister Ignasius Jonan for the realization of the project.

After the MoU is signed, Gunawan pointed out, the city government and PT KAI will discuss the amount of subsidy to be allocated to tram fares.

The city government will try to ensure to the best of its capabilities that members of all strata of society can afford the tram fares.

According to the calculations of the city government and PT KAI, the fares will range from Rp9,000 to Rp10,000.

The tram operator will charge every passenger Rp3,000. Nearly Rp4,000 of the remaining Rp7,000 will be subsidized by the city government, and Rp3,000 will be obtained from advertisements.

"We will discuss this subsidy concept and come to a decision on the ideal amount to be allocated," Gunawan noted.

The tram network will cover a distance of 17 kilometers, starting from Wonokromo in the south and extending till Panglima Sudirman Street in the north.

The tram network will have 29 stops, with the distance between each being 1.5 to 2 kilometers. Each tram will consist of two cars capable of carrying up to 200 passengers.

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