China Eximbank provides $215.6 million preferential buyer's credit loan for Jatigede Dam Project (Linked to Record ID#39375, ID#72360)

Project narrative

On September 25, 2007, China Eximbank and the Government of Indonesia signed a $215,615,732.40 preferential buyer's credit (PBC) agreement [China Eximbank PBC No. (14) Total No. (35)] for the Jatigede Dam Construction Project. The PBC carried the following borrowing terms: a maturity of 15 years, a grace period of 6 years, an interest rate of 3.00%, and a 0.20% management fee of $431,231.46. The loan went into effect on November 20, 2007 and its closing date was November 20, 2013. There was a partial cancellation of the loan on December 21, 2013 worth $24,036.98, making $215,591,695.42 the net commitment value, which was fully disbursed. The first principal payment was scheduled for January 21, 2014 and the last principal payment was scheduled for July 21, 2022. The proceeds of the PBC were to be used by the borrower to partially finance a commercial (EPC) contract between Perusahaan Listrik Negara (PLN) — an Indonesian state-owned electricity company — and Sinohydro Corporation Limited, which was signed on April 30, 2007. The purpose of the project was to construct an embankment dam on the Cimanuk River in Sumedang Regency, West Java. It is located 19 km (12 mi) east of the town of Sumedang (exact locational coordinates: 6°51′23″S 108°05′41″E). Upon completion, the dam was expected to provide water to irrigate approximately 90,000 hectares of farmland and help alleviate water shortages and droughts. It expected to benefit over 1 million people. Sinohydro Corporation Limited and a consortium of Indonesian contractors were responsible for project implementation. Donfang Electric Corporation (DEC) was the supplier of two 55 MW water turbine-generator sets. The originally anticipated project implementation period was from November 15, 2007 to September 9, 2016. Construction actually began on October 23, 2008. The Government of Indonesia announced in late 2011 that that dam was 60% complete. Then, in May 2013, the Government of Indonesia announced that the dam was 70% complete. The dam began to fill with water (i.e initial impounding) on August 31, 2015. In December 2019, PLN announced that the 110MW Jatigede hydropower plant, which was funded by a separate China Eximbank loan (captured in Record ID#39375), was expected to start operations in 2020.