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Overview

ICBC Indonesia contributes IDR 317 billion to IDR 8.07 trillion syndicated loan for Bakauheni–Terbanggi Besar Toll Road Construction Project (Linked to Record ID#68792)

Commitments (Constant USD, 2023)$25,210,748
Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaOverseas Jurisdiction•IndonesiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 27, 2017
Start (actual)
Apr 30, 2015
End (actual)
Mar 8, 2019
First repayment (originally scheduled)
Dec 31, 2023
Last repayment (originally scheduled)
Dec 29, 2031

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to construct a 140.98 km (87.60 mi) toll road that runs from Terbanggi Besar to Bakauheni Port. The road is divided into four sections: Section 1: Bakauheni - Sidomulyo (39 km); Section 2: Sidomulyo - Kotabaru (40 km); Section 3: Kotabaru- Metro (30 km); and Section 4: Metro- Terbanggi Besar (31.9 km). More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=graphhopper_car&route=-5.8689%2C105.7547%3B-4.8712%2C105.2083#map=11/-5.3727/105.4797

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • PT Bank ICBC Indonesia

Cofinancing agencies

Private Sector

  • CIMB Group Sdn Bhd
  • Maybank International (L) Limited
  • Permata Bank
  • PT Bank Central Asia Tbk (BCA)

State-owned Banks

  • PT Bank Mandiri (Persero) Tbk
  • PT Bank Negara Indonesia (Persero)

Receiving agencies

State-owned companies

  • PT Hutama Karya (Persero)

Implementing agencies

State-owned companies

  • PT Hutama Karya (Persero)

Guarantors

Government Agencies

  • Government of Indonesia

Loan description

ICBC contributes to IDR 8.07 trillion syndicated loan for Bakauheni–Terbanggi Besar Toll Road Construction Project

Grace period•7 yearsGrant element•4.9933%Interest rate (t₀)•9%Interest type•Fixed Interest RateMaturity•15 years

Narrative

Full Description

Project narrative

On December 27, 2017, PT Hutama Karya (Persero) — an Indonesian state-owned construction company — signed an IDR 8.067 trillion syndicated loan agreement for the Bakauheni–Terbanggi Besar Toll Road Construction Project. The deal also involved a credit default swap facility from Sarana Multi Infrastruktur (SMI) worth IDR 7.52 trillion. The members of the loan syndicate included Bank Mandiri, BNI, BCA, Bank CIMB Niaga, Bank Maybank Indonesia, ICBC Indonesia, and Bank Permata. ICBC Indonesia contributed IDR 317 billion to the loan syndicate. The borrowing terms of the loan were as follows: a grace period of 7 years, a maturity period of 15 years, and an interest rate of SUN tenor 15 years + a 1.5% margin (Note: SUN refers to Surat Utang Negara or Government bonds.) The Minister of Finance of the Republic of Indonesia issued a sovereign guarantee in support of this loan (via Government Guarantee Letter No. S-416/MK.08/2018 dated June 6, 2018). The total cost of the project was IDR 16.7 trillion. The remaining funds came from equity, which consisted of a state capital injection (PMN) amounting to IDR 2.2 trillion and a corporate bond sale of IDR 6.5 trillion. The purpose of the project was to construct a 140.98 km (87.60 mi) toll road — with two lanes in each direction and nine interchanges — that runs from Terbanggi Besar to Bakauheni Port. The Bakauheni–Terbanggi Besar Toll Road, which is part of the larger Trans-Sumatra Toll Road, is divided into four sections: Section 1: Bakauheni - Sidomulyo (39 km); Section 2: Sidomulyo - Kotabaru (40 km); Section 3: Kotabaru- Metro (30 km); and Section 4: Metro- Terbanggi Besar (31.9 km). Construction of the toll road officially commenced on April 30, 2015. Section 1 and part of Section 2 (5 kilometers from Lematang Interchange to Kota Baru Interchange) was completed and opened to traffic on January 21, 2018. The rest of Section 2, Section 3 and Section 4 were completed officially opened to traffic on March 8, 2019.

Staff comments

1. This project is also known as the Bakauhenni-Terbangii Besar Toll Road Construction Project. 2. Based on the Ministry of Finance FR SUN Series for 2017, FR0074 has a 15-year maturity and a coupon of 7.50%, which AidData used to calculate the interest rate of 9% (7.50% + 1.5%). 3. This project is linked to Record ID#68792, the MoU signed by ICBC in 2015 to provide $20 billion for infrastructure projects.