China Eximbank provides $130.3 million preferential buyer's credit for Phase 3 of Cileunyi-Sumedang-Dawuan Toll Road Project (Linked to Record ID#61325, #39363)

Project narrative

On May 7, 2018, China Eximbank and the Government of Indonesia signed a $130,387,425.76 preferential buyer's credit (PBC) agreement for Phase 3 of the Cileunyi-Sumedang-Dawuan Toll Road Project (captured in Record ID#61397). Funding for Phase 1 of the Cileunyi-Sumedang-Dawuan Toll Road was signed on November 12, 2012 between the China Exim Bank and the Government of Indonesia worth $92,999,886.66 in preferential buyer's credit (PBC) [CHINA EXIMBANK PBC NO. (2012) 35 TOTAL NO. (223)] (captured in Record ID#61325). The PBC, which went into effect on March 11, 2013, carried the following terms: 15-year maturity, 3-year grace period, 3% interest rate, and 0.2% management fee. On March 3, 2016, the closing date of the PBC agreement was extended from March 11, 2016 to August 28, 2017. Then, on August 28, 2017, the PBC agreement was again extended from August 28, 2017 to December 21, 2017. As of December 21, 2017, $84,693,920 of the $92,999,886.66 PBC had been disbursed. On June 13, 2016, China Eximbank and the Government of Indonesia signed a $219,398,580 preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO (2015) TOTAL NO (389)] for Phase 2 of the Cileunyi-Sumedang-Dawuan Toll Road Project (captured in Record ID#39363). The PBC, which went into effect on September 30, 2016, carried the following terms: 15-year maturity, 3-year grace period, 3% interest rate, 0.2% commitment fee, and 0.2% management fee. The closing date of this PBC agreement is June 13, 2021. The Cileunyi-Sumedang-Dawuan Toll Road — also known as the Cisumdawu Toll Road — is a road that, upon completion, will pass through Cileunyi, Tanjung Sari, Sumedang, Cimalaka, Legok, Ujung Jaya and Kertajati. It will connect Padaleunyi Toll Road with Palimanan-Kanci Toll Road. It will also connect Bandung with Kertajati International Airport, which opened in 2018. The road is being built in 6 sections. Section I (or Phase 1): Cileunyi–Tanjungsari (12.0 km); Section II (or Phase 2): Tanjungsari–Sumedang (17.5 km); Section III (or Phase 3): Sumedang–Cimalaka (3.7 km); Section IV (or Phase 4): Cimalaka–Legok (7.2 km); Section V (or Phase 5): Legok–Ujungjaya (15.9 km); and Section VI (Phase 5): Ujungjaya–Dawuan (4.0 km). A consortium of Chinese and Indonesian companies — including the Shanghai Construction Group, Wijaya Karya and Waskita Karya — are responsible for building all the sections of the toll road. However, the Indonesian Ministry of Public Works and Housing, China MCC17 Group Co Ltd, and MCC Overseas Ltd are also involved in project implementation. A formal project commencement ceremony took place on November 29, 2012. As of June 2019, the project was still under implementation. The project was originally expected to be complete by end-2021. On January 15, 2021, the head of the West Java Transportation Office, Hery Antasari, said the toll road project has been held up by the slow process of land clearing on Section VI. In a written statement on Monday, January 24, 2022, West Java Governor Ridwan Kamil said the Cileunyi - Sumedang - Dawuan or Cisumdawu toll road construction project will be finished and connected to the Cipali Toll Road in June 2022. Section III was opened alongside Section II in December 2022.