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Jakarta Post

US$1.1b loan for Jakarta-Bandung railway project to be disbursed in July

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, July 4, 2018   /   11:46 am
 US$1.1b loan for Jakarta-Bandung railway project to be disbursed in July President Joko "Jokowi" Widodo (right, in white helmet) inspects a construction site in Cikalong Wetan, West Java, for the Jakarta-Bandung high-speed railway during a groundbreaking ceremony on Jan. 21, 2016. (AP Photo/Dita Alangkara)

China Development Bank (CDB) is planning to disburse US$1.1 billion in the second phase of construction for the Jakarta-Bandung high-speed railway project. The first phase, involving a loan of $170 million, took place in May.

“In late July, a loan of $1.1 billion will be disbursed following the previously disbursed $170 million,” said PT Kereta Cepat Indonesia China (KCIC) president director Chandra Dwiputra in Jakarta on Tuesday as reported by kompas.com.

In the third phase, he added, $500 million would be disbursed in December.

Chandra said part of the loan would be used to acquire land for the 142.5 kilometer railway project worth $5.9 billion.

KCIC recently constructed 408 replacement houses for Indonesian Air Force employees whose current houses will be affected by the project.

Chandra said the company would wait for the Air Force employees to move to their new homes before demolishing their old ones.

Chandra said the company had to complete the land acquisition process this year. “Next year, the full construction phase will [begin],” he said, adding that, currently, construction progress was at 25 percent, with the developer looking to complete the project in 2021.

President Joko "Jokowi" Widodo led the groundbreaking ceremony for the project in in Cikalong Wetan, West Java on Jan. 21, 2016. (bbn)