China Eximbank provides $198.7 million preferential buyer's credit for Phase 1 of Solo-Kertosono Toll Road Project

Project narrative

On December 29, 2015, China Eximbank and the Government of Indonesia signed a $198,772,235 preferential buyer's credit (PBC) agreement [China Eximbank PBC No (2015) 39 Total No (382)] for Phase 1 of the Solo-Kertosono Toll Road Project. The PBC, which has a closing date of December 29, 2020, carries the following borrowing terms: a 3% interest rate, a 15-year grace maturity, a 5 year grace period, a 0.2% management fee, and a 0.2% commitment fee. The proceeds of the PBC were to be used by the borrower to partially finance a $237 million commercial (EPC) contract between the Government of Indonesia’s Ministry of Public Works and Housing and China Road and Bridge Corporation (CRBC), which was signed on August 21, 2015. The purpose of Phase 1 was to construct the two-way four-lane Saradan-Kertosono section of the Solo-Kertosono Toll Road (AH2), which is 38.39 km in length. This project, which is located on the island of Java, also involved the construction of 23 bridges in 15 locations with a total length of 659 meters; construction of 1.32 km of access roads; construction of 9 overpasses and 29 underpasses; construction of 1 interchange; and construction of 1 pedestrian bridge. CRBC and Indonesia's WIKA and PP companies were jointly responsible for project implementation. They originally anticipated a project implementation period of 1095 days. However, construction began in April 2015 and a project completion ceremony took place on December 20, 2018.