China Eximbank provides $175.05 million preferential buyer's credit for Phase 2 of Railway Equipment Project (Linked to Record ID#61219)

Project narrative

On August 18, 2016, China Eximbank and the Government of Indonesia's Ministry of Transportation signed a $175,056,055 preferential buyer's credit (PBC) agreement [China Exim Bank PBC (2016) 23 Total No. (411)] for Phase 2 of the Railway Equipment Project. The borrowing terms of the PBC are unknown. However, it is known that the borrower was to use the PBC proceeds to partially finance a commercial contract that was signed on September 30, 2015. The PBC agreement went into effect on January 24, 2017 and the loan achieved a disbursement rate of 68.1% by mid-2018. The purpose of Phase 2 was to procure 1,500 km of railway material and 500 turnout (wessel) units for use in the construction of a railway in Java, the construction of the Trans Sumatra railway lines, and the reconstruction of railways that are no longer active. The Government of Indonesia's Ministry of Transportation was responsible for executing the project over a period of 36 months. China EximBank also provided a $68.7 million PBC for Phase 1 of the Railway Equipment Project (captured in Record ID#61219).