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Syndicated loan by five banks to support LRT project
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Construction of the Greater Jakarta light rail transit (LRT) project continues on Jl. HR Rasuna Said in South Jakarta. (JP/Seto Wardhana)
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fter undergoing lengthy discussions involving a number of ministries, the Greater Jakarta light rail transit (LRT Greater Jakarta) project has finally secured a syndicated loan from five banks.
Bank Mandiri president director Kartika Wirjoatmodjo said the banks involved in financing the Rp 29.9 trillion (US$2.2 billion) project were three-state-owned lenders – Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI) – and two private banks.
He, however,did not identify the two private banks.
Read also: Adhi Karya proceeds with LRT amid doubt
“State-owned financing firm PT Sarana Multi Infrastruktur [SMI] reportedly expressed its interest in joining the syndicated loan,” he said over the weekend at the Office of the Maritime Affairs Coordinating Minister in Jakarta as reported by kontan.co.id.
Initially, the government announced that the project would cost Rp 31 trillion.
Kartika said the syndicated loan would be for Rp 18.1 trillion, with the remainder coming from state funding.
The government has also agreed that the interest rate will be 8.28 percent, said Kartika, adding that the contribution of his bank would be around Rp 3 to Rp 5 trillion.
Meanwhile, state-owned construction firm Adhi Karta Budi Harto said the loan from Bank Mandiri was expected to be used by the end of this year to finance the construction of several towers of transit-oriented development (TOD) projects to be developed by Adhi Karya.
Adhi Karya plans to develop three TOD projects at the LRT stations in Bekasi Timur, Ciracas and Cibubur, said Budi, adding that the company also planned to develop seven train depots. (bbn)
