On 24 June 2013, PT Sarana Multi Infrastruktur (Persero) (“PT SMI”), with International Finance Cooperation (“IFC”), a member of the World Bank Group, and PT Indonesia Infrastructure Finance (“IIF”), has signed a syndicated loan agreement of USD85 million for PT Moya Indonesia to improve access to safe drinking water for about 1.8 million people living in the fast-growing Indonesian city of Tangerang.
This syndicated loan is consisting of PT SMI’s investement a USD25 million, while PT IIF is investing USD28 million and IFC is investing about $32 million, of which $23 million will be a loan and $8.7 million will be equity.
This financing support will allow PT Moya Indonesia to more than quadruple the capacity of its water treatment plant to 168,480 cubic meter per day from 38,880 cubic meter per day. It will also help the company build a distribution network that will connect about 150,000 new households and industrial customers to address the growing demand of clean water in Tangerang and allow the city to achieve its millennium development goal of improving clean water access.
PT Moya Indonesia is a subsidiary of Moya Asia Limited, which is listed on Catalist, the second board of the Singapore Exchange, has signed a 25-year agreement with Indonesian water company Perusahaan Daerah Air Minum Tirta Benteng Kota Tangerang to build, operate and eventually transfer a water treatment plant to the local government.
“Tangerang has 1.8 million people and around 400 industries, but only 30,000 households enjoy clean water,” says Simon A. Melhem, chief executive officer of Moya Asia Limited. “This investment will help us increase access to clean water and cope with the city’s water crises.”
As a non bank financial institution, fully owned by Indonesian government through the Ministry of Finance, who supports the financing of infrastructure projects in Indonesia, PT SMI has been cooperating with IFC in both financing and equity sectors for Indonesian companies in infrastructure development sectors.