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

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of a railway in Java, the construction of the Trans Sumatra railway lines, and the reconstruction of railways that are no longer active.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 Project ID#61219).

Additional details

1. This project is also known as the Procurement of Track Material and Turn Out - Phase II Project and the Procurement of Track Material and Turnout Phase II (1500 KM'SP and 500 Unit) Project. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. The Government of Indonesia project identification number is BB-1114-R1-029-0.

Number of official sources

10

Number of total sources

11