China Eximbank provides $67.2 million preferential buyer's credit loan for Tayan Bridge Construction Project

Project narrative

On August 8, 2012, China Eximbank and the Government of Indonesia signed a $67,275,493 preferential buyer's credit (PBC) agreement for the Tayan Bridge Construction Project. The PBC carries the following borrowing terms: a grace period of 4 years, 5 months, and 13 days, a maturity of 15 years, 5 months, and 13 days, an interest rate of 3%, and a 0.18% management fee (worth $134,550). The proceeds of the PBC were to be used by the borrower to finance 90% of the cost of a commercial (EPC) contract with China Road and Bridge Corporation (CRBC). The initial cost of the EPC contract was 740 billion rupiah (approximately $56 million); however, its cost appears to have increased over time. The PBC officially went into effect on September 3, 2012 and it achieved a 65.01% disbursement rate by June 2014. The purpose of the project was to construct a 1975 meter long and 11-meter wide bridge that crosses the Kapuas River in Sanggau, West Kalimantan (exact locational coordinates: -0.0481, 110.108). The construction of the bridge was divided into two parts. The first part involved the construction of a 300-meter bridge from Tayan town to Tayan Island, and the second part involved the construction of a 1,140 meters bridge from Tayan Island to Piasak. Tayan Bridge is a part of Trans-Kalimantan Highway (southern route) that connects West Borneo with Central Borneo. CRBC was the EPC contractor responsible for implementation. Construction began on October 8, 2012 and ended on December 3, 2015. The bridge was officially opened to traffic on March 22, 2016. Before the bridge was completed, vehicle crossing between Tayan and Piasak was served by two small ferries. It required 20 minutes to cross the river by ferry.