China Eximbank provides $53.4 million preferential buyer's credit for Section 5 of Balikpapan Samarinda Toll Road Project (Linked to Record ID#67563)

Project narrative

On December 29, 2015, China Eximbank and the Government of Indonesia signed a $53,405,755.75 preferential buyer's credit (PBC) agreement [China Eximbank PBC No (2015) 42 Total No (385) and #1420103022012210000] for Section 5 of the Balikpapan-Samarinda Toll Road Project. The PBC, which has a closing date of December 29, 2020, carries the following borrowing terms: a 3% interest rate, a 15-year grace maturity, a 5 year grace period, a 0.2% management fee, and a 0.2% commitment fee. The proceeds of the PBC were to be used by the borrower to partially finance an EPC contract with Beijing Urban Construction Group (BUCG), which was signed on September 23, 2015. The purpose of the Balikpapan Samarinda Toll Road Project is to construct a 90.22 km expressway that seeks to connect the cities of Balikpapan and Samarinda in the East Kalimantan province. The construction of the road is divided into five sections. Section 1 is a 21.95 km segment that runs from KM 13 to Samboja. Section 2 is a 30.05 km segment that runs from Samboja to Muara Jawa. Section 3 is an 18.2 km segment that runs from Muara Jawa to Palaran. Section 4 is a 17.15 km segment that runs from Palaran to Samarinda. Section 5 is an 11.09 km segment that runs from Km 13 Balikpapan to Sepinggan Airport. BUCG is the EPC contractor responsible for implementation. Construction began on January 12, 2011, but was subsequently halted because of insufficient funding and the failure of the project developer — Jasa Marga Balikpapan Samarinda, a consortium consisting of Jasa Marga (55%), Wijaya Karya (15%), Pembangunan Perumahan (15%), and Bangun Tjipta Sarana (15%) — to purchase all required land. Then, in November 2015, President Joko Widodo relaunched the construction of the toll road. The construction of Section 5 began on August 4, 2016. On December 17, 2019, sections 2, 3, and 4 were completed and opened for use. Section 1 and 5 are not yet complete. Section 5 was anticipated to be completed in 2018, but did not receive its final engineering certificate until April 2023.