Completed Mixed AidData Chinese Aid

China Eximbank provides $78 million preferential buyer's credit for Section 1B of Manado-Bitung Toll Road Project (Linked to Record ID#61426)

$78.1M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Indonesia
Country	Indonesia
Start Date	Jun 13, 2016
End Date	Jan 21, 2033
Duration	6,066 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`46420`

Grant Description

China Eximbank contribution to $78,099,963 preferential buyer's credit loan for Section 1B of Manado-Bitung Toll Road Project In 2014, China Eximbank agreed in principle to provides a loan worth 1.1 trillion IDR for the construction of the Manado-Bitung Toll Road.

Then, on June 13, 2016, China Eximbank and the Government of Indonesia signed a $78,099,963 preferential buyer's credit (PBC) agreement [China Eximbank PBC No (2016) 7 Total No (395)] for Section 1B of the Manado-Bitung Toll Road Project.

📋 Loan / Grant Terms

⏳ Grace Period5 years

💹 Interest Rate3%

The proceeds of the PBC were to be used by the borrower to partially finance a $90 million commercial (EPC) contract with China State Construction Engineering Corporation (CSCEC), which was signed on October 13, 2015. As of September 2018, $24,727,417 of the PBC had been disbursed.

On October 13, 2017, ICBC Indonesia agreed to contribute IDR 1000 billion to an IDR 7756 trillion syndicated loan agreement with PT Jasamarga Manado Bitung, of which IDR 500 billion was earmarked for Section 2 of Manado-Bitung Toll Road Project (captured in Record ID#61426) and IDR 500 billion was earmarked for the Pandaan-Malang Toll Road Project (captured in Record ID#69113).

PT Jasamarga Manado Bitung is a special purpose vehicle and joint venture between PT Jasa Marga (Persero) Tbk (65%), PT WIKA (Persero) Tbk, and PT PP (Persero) (15%). The syndicated loan that was issued to PT Jasamarga Manado Bitung has a maturity of 15-years.

Members of the syndicated included BNI, BCA, Bank Mandiri, Sarana Multi Infrastruktur (SMI), ICBC Indonesia, Bank Sulselbar, Bank Riau Kepri and Central Java Bank.

The purpose of the Manado-Bitung Toll Road Project was to construct a 39 km toll road that connects two of North Sulawesi’s largest cities (Manado and Bitung) as major access roads to Bitung Special Economic Zone (KEK) and Bitung International Hub Port. Section 1A involved the construction a 7.9 km segment of the toll road from Manado to Sukur Ring Road.

Section 1B involved the construction a 7 km segment of the toll road from Sukur to Air Madidi. Section 2A involved the construction an 11.5 km segment of the toll road from Airmadidi to Danowudu. Section 2B involved the construction of a 13.5 km segment of the toll road from Danowudu to Bitung. Section 1 was constructed by the Government of Indonesia.

Section 2 was constructed by the private sector (PT Jasamarga Manado Bitung).

CSCEC Road and Bridge Group, a subsidiary of China State Construction Engineering Corporation (CSCEC), was the contractor responsible for the implementation of Section 1B. An official project commencement ceremony took place on January 16, 2013.

However, the construction of Section 1 did not begin until October 12, 2014 and the project subsequently encountered major delays due to land acquisition challenges. As of May 2017, the project had only achieved a 20% completion rate. Sections 1 and 2 of the project were ultimately completed on December 25, 2019.

📋 Staff Comments

The Chinese project title is 万鸦老--比通高速公路项目. The Indonesia project title is Jalan Tol Manado-Bitung or Proyek pembangunan jalan tol Manado-Bitung.
The Manado-Bitung Toll Road Project is divided into two sections, with two subsections each. Section 1 is 13.5 kilometers long and it was to be constructed by the Government of Indonesia; Section 2 is 25.5 kilometers long and it was to be constructed by the private sector. Section 1A (Manado-Sukur Ring Road) is 7.9 km long, Section 1B (Sukur-Air Madidi) is 7 km long, Section 2A (Airmadidi-Danowudu) is 11.5 km long, and Section 2B (Danowudu-Bitung) is 13.5 km long.
In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies the face value of the China Eximbank loan that supported this project as $503 million. However, this estimate appears to be based on the overall cost of the Manado-Bitung Toll Road Project. AidData relies upon the precise face value ($78,099,963) of the loan [China Eximbank PBC No (2016) 7 Total No (395)] that is recorded by the borrower (the Government of Indonesia).

📚 Sources & References

Exim Bank disburses first tranches of loans
Manado-Bitung Toll Road
Public-Private Partnerships Indonesia: 4 Projects to Be Offered in 2015
BITUNG ROLL ROAD: Loan Not yet Disbursed
Project Continues
Laporan Kinerja Penyerapan Pinjaman
Hibah dan Project Based Sukuk (PBS)
LIST OF PLANNED PRIORITY EXTERNAL LOANS (DRPPLN) 2016
Menteri PUPR Desak Proses Pencairan Pinjaman Dipercepat
Infrastructure: Manado – Bitung toll road accelerated
List of Chinese Government Loans from the Management Reports for Government Loans and Grants (2011-2018)
Section 2 of Indonesian Manado-Bitung Toll Road completed
Manado - Bitung Toll Road is targeted to operate in April 2020
Govt kicks off Manado-Bitung toll road project
Laporan kinerja instansi pemerintah 2017
Konstruksi Capai 70 persen
Tol Manado-Bitung Siap Beroperasi Pertengahan 2020
Proyek Pembangunan Jalan Tol Manado Bitung
Ada Jalan Tol
Manado-Bitung Cuma 30 Menit
Pinjaman China Segera Cair untuk Tol Manado-Bitung dan Cisumdawu
Jalan Tol Manado Bitung di Launching Artikel ini telah tayang di TribunManado.co.id dengan judul Jalan Tol Manado Bitung di Launching, https://manado.tribunnews.com/2014/01/16/jalan-tol-manado-bitung-di-launching. Penulis: Ryo_Noor Editor: Andrew_Pattymahu
Proyek Jalan Tol Manado-Bitung Habiskan Dana Hingga Rp 6,7 T
Jasa Marga pastikan Tol Manado-Bitung beroperasi tahun ini
Section 2 of Indonesian Manado-Bitung Toll Road completed
中国建筑中标印尼万鸦老-比通高速公路项目
中国建筑中标印尼万鸦老-比通高速公路项目
Manado–Bitung Toll Road
Proyek Dua Tol Ini Raih Pembiayaan Rp 7,765 Triliun
Garap 2 Proyek Tol
Jasa Marga Dapat Utang Rp 7,7 T
China Overseas Development Finance
Manado–Bitung Toll Road
In Indonesia, a project meant to boost livelihoods has left locals behind Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.