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Jakarta Post

China to channel US$1.3b for Sumatra coal railway

  • Esther Samboh

    The Jakarta Post

Jakarta   /   Sat, November 19 2011   /  11:55 am

PT Bukit Asam Transpacific Railways (BATR) signed on Friday a financing deal worth US$1.3 billion from the China Development Bank (CDB) to kick-start the long-delayed railway construction in Sumatra.

BATR president director Rudiantara said the project was part of an integrated plan consisting of coal mining, coal transportation infrastructure and port logistics.

“With the deal, we’ll have funding certainty,” Rudiantara said on the sidelines of the 19th ASEAN Summit and ASEAN Business and Investment Summit.

He also said total funding needed for the railway project was $2 billion, with the remaining $700 million coming “from equity, and from the initial paid-up capital from shareholders”.

CDB chief planning officer Chen Jianying said the debt to equity ratio was 70:30.

Three other Chinese lenders participating in the $1.3 billion syndicated lo...