China Eximbank provides $219.3 million preferential buyer's credit for Phase 2 of Cileunyi-Sumedang-Dawuan Toll Road Project (Linked to Record ID#61325, #61397)

Project narrative

On June 13, 2016, China Eximbank and the Government of Indonesia signed a $219,398,580 preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO (2015) TOTAL NO (389)] for Phase 2 of the Cileunyi-Sumedang-Dawuan Toll Road Project (captured in Record ID#39363). The PBC, which went into effect on September 30, 2016, carried the following terms: 15-year maturity, 3-year grace period, 3% interest rate, 0.2% commitment fee, and 0.2% management fee. The closing date of this PBC agreement is June 13, 2021. Funding for Phase 1 of the Cileunyi-Sumedang-Dawuan Toll Road was signed on November 12, 2012 between the China Exim Bank and the Government of Indonesia worth $92,999,886.66 in preferential buyer's credit (PBC) [CHINA EXIMBANK PBC NO. (2012) 35 TOTAL NO. (223)] (captured in Record ID#61325). The PBC, which went into effect on March 11, 2013, carried the following terms: 15-year maturity, 3-year grace period, 3% interest rate, and 0.2% management fee. On March 3, 2016, the closing date of the PBC agreement was extended from March 11, 2016 to August 28, 2017. Then, on August 28, 2017, the PBC agreement was again extended from August 28, 2017 to December 21, 2017. As of December 21, 2017, $84,693,920 of the $92,999,886.66 PBC had been disbursed. On May 7, 2018, China Eximbank and the Government of Indonesia signed a $130,387,425.76 preferential buyer's credit (PBC) agreement for Phase 3 of the Cileunyi-Sumedang-Dawuan Toll Road Project (captured in Record ID#61397). The Cileunyi-Sumedang-Dawuan Toll Road — also known as the Cisumdawu Toll Road — is a road that, upon completion, will pass through Cileunyi, Tanjung Sari, Sumedang, Cimalaka, Legok, Ujung Jaya and Kertajati. It will connect Padaleunyi Toll Road with Palimanan-Kanci Toll Road. It will also connect Bandung with Kertajati International Airport, which opened in 2018. The road is being built in 6 sections. Section I (or Phase 1): Cileunyi–Tanjungsari (12.0 km); Section II (or Phase 2): Tanjungsari–Sumedang (17.5 km); Section III (or Phase 3): Sumedang–Cimalaka (3.7 km); Section IV (or Phase 4): Cimalaka–Legok (7.2 km); Section V (or Phase 5): Legok–Ujungjaya (15.9 km); and Section VI (Phase 5): Ujungjaya–Dawuan (4.0 km). A consortium of Chinese and Indonesian companies — including the Shanghai Construction Group, Wijaya Karya and Waskita Karya — are responsible for building all the sections of the toll road. However, the Indonesian Ministry of Public Works and Housing, China MCC17 Group Co Ltd, and MCC Overseas Ltd are also involved in project implementation. A formal project commencement ceremony took place on November 29, 2012. In March 2019, construction progress was at 63.42%, and in June 2019 the project was still under implementation. The expected project completion date is 2021. In February 2022, phase two was completed.