The Mock-up High Speed Railway - Photo by KCIC

JAKARTA (TheInsiderStories) – Indonesian construction firm PT Wijaya Karya Tbk (IDX: WIKA) with Citra Manila Consortium, consisting of PT Citra Persada Infrastruktur, PT Citra Nusaphala Marga Infrastruktur and CLGP Philipine Holding Inc, signed an agreement related to the elevation of 18 Kilometers toll project in Manila, said the company on Monday (28/05).

The Manila Taguig Expressway Project (MTEX) is divided into three phases with consideration of mainly right-of-way availability and function priority, namely. This project aims to connect Metro Manila Skyway Stage 3 and the Metro Manila Expressway.

Previously, CLGP Philippine Holdings and Citra Persada Infrastruktur has submit the proposal to Department of Public Works and Highways of Philipphines on Nov. 28, 2016. 

The toll road construction is planned to be built in three years time starting January 2019 to December 2022 and funded directly by the Philippine Government. The value of the toll road project amounts to US$1.25 billion.

In addition to the MTEX Project plan, WIKA has previously started the reconstruction of Clarin Bridge in Bohol, Philippines. Clarin Bridge is included in the Bohol Circumferential Road that collapsed in the 7.2 magnitude earthquake in the Philippines in 2013.

In the project, WIKA and the local Philippine company VT Lao Construction are believed to be reconstructing Clarin Bridge with a contract value of 445.8 million Philippine Pesos ($23.44 million). The 104-meter bridge is targeted to be completed in October 2019 and is expected to facilitate access to tourism areas and accelerate the flow of goods and services mobilization in Bohol Province.

Recently, Indonesia’s Transportation Ministry has named two Indonesian companies WIKA, PT PP Tbk (IDX: PTPP) and Japanese firm Penta-Ocean Construction as the winner of Japanese funded Patimban Port Project located in Subang, West Java.

Last April, Its unit PT Kereta Cepat Indonesia China (KCIC) has started again to develop after get the first stage of loan to help fund development of Jakarta-Bandung high speed train $170 million from China Development Bank (CDB), on April 27/04.

Tumiyana, President Director of WIKA said with the completion of the entire licensing process, the company expects fresh funds to finance the project to be immediately disbursed.

KCIC, which is backed by a consortium consisting of Indonesian and Chinese companies, has developed the first stage of the high speed train since 2016. The entire 142.3 kilometer long fast train project is estimated to cost about $5.9 billion, of which $4.5 billion is expected to come from loan from CDB.

WIKA participates as a shareholder in PT Pilar Sinergi BUMN Indonesia of 38 percent, while other state-owned company PT Kereta Api Indonesia is 25 percent, PT Perkebunan Nusantara VIII 25 percent, and PT Jasa Marga Tbk (IDX: JSMR) of 12 percent. The consortium joined with Beijing Yawan HSR Co. Ltd. each owns 60 percent and 40 percent shares in KCIC.

Last year, the state-owned company has raised $400 million from global IDR Komodo Bonds for investors to fund capital expenditure and repay part of its existing borrowings. Moody’s Investors Service has assigned a Ba2 rating to Wijaya Karya’s proposed Indonesian rupiah-denominated.  

WIKA’s planned capital expenditure and investments include toll road construction projects, transit-oriented development projects, and equity investments in the Jakarta to Bandung High Speed Rail project.

Established in 1960, WIKA is one of the largest engineering, procurement and construction companies in Indonesia, with revenues of around Rp22.2 trillion for the 12 months to Sept 30, 2017 (Q3), and an order book of Rp94.4 trillion as of the same date.

Listed on the Indonesian Stock Exchange since 2007, WIKA is 65 per cent owned by the Government of Indonesia (Baa3 positive), with the remaining 35 per cent shares held by members of the public.

Based on the financial statements extending to the Q3 of 2017, WIKA booked a net profit of Rp682 billion, increased 46.66 per cent, compared to the same period last year, when it marked Rp465 billion.  Meanwhile, WIKA’s net sales rose from Rp9.34 trillion in the third quarter of 2016 to Rp15.88 trillion in the third quarter of 2017, an increase of 69.99 per cent.

US$1: 52.59 Philippine Piso