China Eximbank provides $237.8 million preferential buyer’s credit for Jenelata Dam Construction Project

Project narrative

In 2016, the Chinese Government reportedly signaled interest in issuing a loan for the construction of Jenelata Dam. Then, on May 7, 2018, the China International Development Cooperation Agency (CIDCA) and the Ministry of Public Works and People's Housing (PUPR) of Indonesia signed letters of exchange for the design of the Jenelata Dam Construction Project. On September 6, 2023, China Eximbank and the Government of Indonesia signed a $237,862,000 preferential buyer’s credit (PBC) agreement for the Jenelata Dam Construction Project. The borrowing terms of the loan include a 16.3-year maturity, a 6.8-year grace period, and a 3% interest rate. The borrower is expected to use the proceeds of the loan to partially finance a $290 million commercial contract between China CAMC Engineering Co Ltd (CAMCE) and the Ministry of Public Works and Housing of Indonesia, which was signed on June 29, 2022. The purpose of the project is to construct a 1,525-meter-long and 62.8-meter-high dam (known as ‘Jenelata Dam’) in Manyampa Village within Gowa District and South Sulawesi Province, creating a reservoir with a capacity of 285 million cubic meters with capacity to to irrigate 24,400 hectares of soil. The dam's expected benefits include not only improved agricultural irrigation but also enhanced flood prevention. CAMCE is the EPC contractor responsible for implementation. On November 1, 2023, it received advance payment from the project owner, which officially started construction. Then, on December 19, 2023, a formal groundbreaking ceremony took place. The project was originally scheduled to reach completion within 56 months (July 1, 2028). As of July 2024, the project was still expected to be completed in 2028.