JAKARTA (TheInsiderStories) – State Enterprise Minister Rini Soemarno said Monday (19/02) that she expects the first phase of loan for the Jakarta-Bandung High-Speed Train project, amounting to US$500 million, to be disbursed next month. The loan will enable the developer of the project, PT Kereta Api Cepat Indonesia China (KCIC) to kick-start the construction of the project.
The company is currently finalizing the document processing with the bank. “We hope it (the disbursement) will be done in March,” Minister Rini told reporters. She admitted that the project completion is likely to be postponed due to slow progress of land clearing.
So far, land clearing has only reached 54 kilometers out of the total length of 142. The government targets securing all land by April 2018. KCIC, she said, is expected to start clearing the land in Halim, East Jakarta from later this month.
The Jakarta-Bandung high-speed train is being developed by PT Kereta Cepat Indonesia China (KCIC), a consortium of Indonesian and Chinese companies, and is estimated to cost around US$5.9 billion. About US$4.5 billion of these funds are anticipated from a China Development Bank (CDB) loan. This would cover 75 per cent of the total, with the remaining 25 per cent to be financed by the consortium as project equity.
On Apr. 4 2017, project developer KCIC signed an engineering, procurement, and construction (EPC) contract with the High-Speed Railway Contractor Consortium (HRCC) in Jakarta. The signing of the EPC follows groundbreaking on the project by President Joko Widodo in January 2016.
The target to commence operation by 2020 now looks highly unlikely; instead, the government now hints that commercial operation might start in 2024.