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BRI contributes to syndicated financing of Trans Papua Road project
WINDONESIA January 18, 2025
BRI Wholesale & Institution Business Director Agus Noorsanto after the signing of the syndicated financing agreement for the Trans Papua Road project at the Hutama Karya Building in Jakarta on Dec. 30, 2024. (Antara/BRI)
Banking state-owned enterprise (SOE) PT Bank Rakyat Indonesia (Persero) Tbk or BRI is involved in the syndicated financing of the Trans Papua Road project, Jayapura-Wamena Section, Mamberamo-Elelim Segment in the Papua Mountains Province.
BRI Wholesale & Institution Business Director Agus Noorsanto said that BRI's involvement in the project is real evidence of the company's contribution in supporting the development of national strategic infrastructure.
"The high interest of financial institutions in financing this project is reflected in the oversubscription rate of 1.27 times, which shows the great trust of financial institutions in the prospects of the Trans Papua [Road] government-enterprise partnership project," said Agus in his statement in Jakarta on Jan. 8, 2025.
The Trans Papua Road project has a total investment value of Rp3.3 trillion with a concession period of 15 years that includes two years of construction and 13 years of service. The 50.14-kilometer road is intended to be the main route for logistics transportation connecting Jayapura City, Papua Province and Wamena Regency, Highland Papua Province.
The project will be implemented by PT Hutama Mambelim Trans Papua (HMTP), which was formed through a consortium between construction state-owned enterprise (SOE) PT Hutama Karya (Persero) and its subsidiary PT Hutama Karya Infrastruktur (HKI). The project uses the availability payment scheme, supported by a payment guarantee from PT Penjaminan Infrastruktur Indonesia, where the government provides payments periodically based on the agreed quality of service.
The syndicated financing involves four other financial institutions, namely PT Sarana Multi Infrastruktur (Persero) or SMI, PT Bank Negara Indonesia (Persero) Tbk or BNI, PT Bank Mandiri (Persero) Tbk subsidiary PT Bank Syariah Indonesia Tbk or BSI, and PT Bank Pembangunan Daerah Papua (Bank Papua). The total syndicated value reached Rp2.6 trillion, consisting of conventional scheme financing worth Rp2.36 trillion and sharia scheme financing scheme worth Rp300 billion.
The HMTP consortium has officially signed a syndicated financing agreement for the Trans Papua Road project. BRI and SMI act as coordinating banks for the project, while BNI acts as the Joint Mandate Lead Arrangers and Bookrunners (JMLABs). As one of the coordinating banks, Agus said that BRI is committed to continuing to encourage synergy between the partnership's resulting consortium, financial institutions, PT Penjaminan Infrastruktur Indonesia (PII), and the government.
"The collaboration is expected to be a strong foundation to support the success of other strategic projects through the government-enterprise partnership scheme in the future," he said.
Source: www.antaranews.com
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