Narrative
Full Description
Project narrative
In 2018, a syndicate of five banks — including PT Bank ICBC Indonesia and the Bank of China (Hong Kong) Limited (BOCHK) — entered into an IDR 4,500,000,000,000 syndicated loan agreement with PT Hutama Karya (Persero) — an Indonesian state-owned construction company — for the Pekanbaru-Dumai Toll Road Project. This loan was divided into two tranches: an IDR 2,900,000,000 Tranche A with an interest rate of 3-month JIBOR plus a margin of 1.87478% with a maturity period of 10 years and a final maturity date of November 10, 2028; and an IDR 1,600,000,000 Tranche B with an interest rate of 3-month JIBOR plus a 1.87578% and a maturity period of seven years and a final maturity date of November 10, 2025. This loan was secured by (i.e. collateralized against) a letter of guarantee from government; fiduciary claim and revenue from toll road including other trade revenue related to toll road operation, insurance claim, bank guarantee claim, and reimbursement funds from government with guarantee amounting total 100% fiduciary of escrow account. ICBC Indonesia contributed IDR 400 billion to the loan, as captured by Record ID#61429. BOCHK's contribution to the loan is captured by Record ID#105182. In addition to ICBC Indonesia and BOCHK, the Tanjung Priok Access Toll Road monetization system of PT Bank Permata Tbk, the Jakarta Branch of MUFG Bank, and PT Sarana Multi Infrastruktur (Persero) PT Hutama Karya partnered with PT Sarana Multi Infrastruktur (SMI) to finance the project. PT Kanta Karya Utama assessed environmental impact, PT Cipta Strada Engineering Consultants were civil engineers, and REDS Consultants were traffic consultants for the project. Badan Pengatur Jalan Tol (BPJT) is undertaking the construction of the road. The road links Pekanbaru and Dumai in Riau, Indonesia, and it is part of the Trans-Sumatra Toll Road Network in Riau province. Groundbreaking of construction of this toll road was done in 2013. Pekanbaru-Dumai toll road is divided into six sections with a total investment of Rp16.21 trillion that is set to be finished by 2020. By November 2019, the construction progress of all sections reached 74.2%.. On September 22, 2020, the road was been completed and inaugurated by President Joko “Jokowi” Widodo. Individual opinion polls have listed noise pollution and construction over land within the Harapan Bara Village causing involuntary resettlement as negative impacts for community members along the road's path. Another study concluded that the road's toll rates are not realistic for nearby consumers, limiting its long-term benefits.
Staff comments
1. The average 3-month JIBOR for 2018 was 5.076881182%. Therefore, the interest rate has been coded as (5.076881182% + 1.87478%) = 6.951661182%. 2. It is unclear whether each lender to each tranche; for the time being, AidData has assumed they have, and coded the maturity period of this record as the average maturity period {[10 + 7] / 2 = 8.5 years. 3. ICBC Indonesia contributed IDR 400 billion to the loan. However, the remaining contributions of the five lenders IDR 4.1 billion are unknown. For the time being, AidData has assumed BOCHK's contribution by assuming each lender contributed equally (IDR 1,025,000,000,000) to the loan syndicate.