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China Eximbank provides $676 million preferential buyer’s credit for Semarang-Demak Toll Road Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Indonesia |
| Country | Indonesia |
| Start Date | Nov 18, 2022 |
| End Date | May 09, 2033 |
| Duration | 3,825 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 96356 |
Grant Description
China Eximbank provides $676 million preferential buyer’s credit for Semarang-Demak Toll Road Project On November 18, 2022, China Eximbank and the Government of Indonesia signed a $676,087,000 preferential buyer’s credit (PBC) agreement for the Semarang-Demak Toll Road Project.
The borrower was expected to use the proceeds of the loan to finance commercial contracts with Beijing Urban Construction Group Co Ltd (BUCG), PowerChina, and China Road and Bridge Corporation (CRBC). The purpose of the project is to construct a toll road that connects Semarang with Demak in Java, Indonesia.
The 24.7km (15.3 mi) toll road will act as a complement to the Trans-Java Toll Road. The toll road seeks to increase accessibility and road network in the northern parts of Java.
The toll road will be integrated with a sea dike at the northern beach of Semarang City, all the way until the Sayung River at Demak Regency.
The goal of constructing this toll road is to minimize congestion along the Semarang–Demak-Surabaya northern coast road of Java and also to the tourist cities in Demak (namely, Kadilangu/Sunan Kalijaga Tomb and Demak Great Mosque). Another goal of the project is to overcome tidal flooding along the northern coast as a retaining sea wall guarder.
The toll road is divided into two sections. Section 1 is 10.69 km and it runs from Semarang to Sayung. Section 2 is 16.31 km and it runs from Sayung to Demak.
Beijing Urban Construction Group Co Ltd (BUCG) is the general EPC contractor responsible for implementation for the Semarang-Demak Toll Road 1A Project. It has hired PT Hutama Karya (Persero) — an Indonesian state-owned company — as a subcontractor. CRBC is the general EPC contractor responsible for implementation for the Semarang-Demak Toll Road 1B Project.
It has hired PT Wijaya Karya Tbk (Wika) and PT PP Tbk (PTPP) — two Indonesian state-owned firms — as subcontractors.
Power Construction Corporation of China (PowerChina) is the general EPC contractor responsible for implementation for the Semarang-Demak Toll Road 1C Project. It hired PT Adhi Karya Persero (an Indonesian state-owned company) as a subcontractor. By May 2024, the project had achieved a 9.25% completion rate and it was on track for completion in February 2027.
Section 2 running from Sayung to Demak was inaugurated on February 25, 2023.
Staff Comments
- This project is also known as the Development of Semarang-Demak Toll Road Project Integrated with Sea Dike. The Chinese project title is 印度尼西亚三宝垄-德玛克高速公路项目 or 印尼三宝垄-德马克海堤公路项目.
- One source (https://zhuanlan.zhihu.com/p/592228797 and https://new.qq.com/rain/a/20221216A02GKX00) refers to a China Eximbank loan agreement being signed on December 12, 2022 for the Semarang-Demak Toll Road 1B Project. It is unclear if this loan agreement is separate from and additional to the loan agreement that was signed on November 18, 2022. This issue warrants further investigation.
- According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 13.2-years in 2022. AidData estimates the maturity of the China Eximbank loan that supported Semarang-Demak Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 5.1-years in 2022. AidData estimates the grace period of the China Eximbank loan that supported Semarang-Demak Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=05. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 2.9% in 2022. AidData estimates the interest rate of the China Eximbank loan that supported Semarang-Demak Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=0
Sources & References
- 集团中标印度尼西亚高速公路项目
- HK and BUCG to take on Semarang-Demak 1A toll road
- KSP Pastikan Dana Kerohiman Tanah Musnah Tol Semarang-Demak Berkeadilan
- List of Priority External Loans
- 集团中标印度尼西亚高速公路项目
- 陈重在印度尼西亚开展系列商务活动
- 中国路桥中标印度尼西亚海堤收费公路项目
- 中国路桥签署印尼三宝垄项目1B标段联合体实施协议
- 中国电建签约印尼三宝垄-德马克海堤高速公路1C标段项目
- 进出口银行与印尼财政部签署三宝垄—德马克收费公路2个项目贷款协议
- 进出口银行与印尼财政部签署三宝垄—德马克收费公路2个项目贷款协议
- 进出口银行与印尼财政部签署三宝垄-德马克收费公路2个项目贷款协议, 【行业资讯】中国路桥 年底冲刺 多个项目突破重要节点
- Semarang–Demak Toll Road
- PUPR Targets Section 2 Semarang-Demak Toll Road To Operate By The End Of 2022
- Invitation For Applicant 1A - Prakualifikasi Ulang
- Pengumuman Pemenang Toll Road Development of Semarang - Demak 1A
- Sengketa Tanah Warga Terdampak Proyek Tol Semarang Demak
- Pemerintah Pastikan Bayar Kerohiman Prinsip Keadilan
- Indonesia's Semarang-Demark Seawall Expressway 1C project was signed, [China Road and Bridge Corporation Signed Indonesian Highway Project] Recently
- CR
- 水电一局喜签中印尼两国重点经贸合作项目
- China Energy Construction
- China State Construction
- Power China
- PetroChina and other overseas winning bids
- List of medium-term planned external loans 2020-2024 -2021 revision-
- 中企海外项目周报（2022.11.19-2022.11.25）
- Tol Semarang-Demak Ditargetkan Rampung Total 2027
- 进出口银行与印尼财政部签署三宝垄—德马克收费公路2个项目贷款协议
- 愿公路早日建成、造福当地百姓——记奋战在印尼的中国青年建设者
- 进出口银行与印度尼西亚财政部签署三宝垄—德马克收费公路2个项目贷款协议
- Indonesia's official sector PRC borrowings and borrowing terms IDS December 2024
- Residents oppose Semarang-Demak sea toll road project
- The Socio-Economic Impact of Massive Infrastructure Development in Indonesia
- Environmental Impact of Semarang-Demak Toll Development
- Environmental Impact Analysis of the Semarang-Demak Sea Embankment Toll Road Criticized
- WIKA Builds Semarang - Demak Toll Road
- Improve Connectivity and Flood Protection
- Semarang-Demak Toll Road Inaugurated
- Ministry fast tracking construction of Semarang-Demak Toll Road
- Joko Widodo inaugurates Semarang-Demak Toll Road Section 2 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.
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Government of Indonesia
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