China Eximbank provides overseas investment loan to support projects in Morowali Industrial Park (Linked to Record ID#85817)

Project narrative

On October 2, 2013, Shanghai Dingxin Investment (Group) Col, Ltd. — a subsidiary of Tsingshan Steel — and Bintang Delapan Group signed an agreement to establish a joint venture, PT. Indonesia Morowali Industrial Park (IMIP) to develop the China-Indonesia Economic and Trade Cooperation Zone Indonesia Morowali Industrial Park (IMIP) in Sulawesi Province. Shanghai Dingxin Investment (Group) Co., Ltd. holds a 66.25% ownership stake and Indonesia PT Bintangdelapan Group holds a 33.75% ownership stake. In 2018, the Export-Import Bank of China (China Eximbank) agreed to provide an overseas investment loan to Shanghai Dingxin Investment Group for projects in the Morowali Industrial Park. The overseas investment loan helps promote the development of the technical level of Indonesian industry, but also promotes the export of China's mechanical and electrical equipment, and improves China's ability to guarantee resources such as nickel and chromium. In recent years, the Shanghai Branch of the Export-Import Bank of China has cooperated closely with Shanghai Dingxin. It has used overseas investment and loans to support the construction of the fourth and sixth key projects in the park. The transaction amount and details about the sixth key project are unclear. This project is part of China's Belt and Road Initiative (BRI). The total planned land area of the park is about 2000 hectares. By 2018, there were four secondary base stations, 10 satellite TV reception systems, and a 30,000-ton terminal built as well as eight 5,000-ton dock berths and more than 70 residential houses. As of the end of September 2016, the actual investment in the park and the park project totaled approximately $2.5 billion. Construction commenced in late 2013.