The subsidiary of PT Jasa Marga (Persero) Tbk., PT Marga Sarana Jabar received a Rp660 billion funding facility from PT Sarana Multi Infrastruktur (Persero) to pay off the cost of a contractor pre-finance (CPF) in the construction of a sexy Bogor Outer Ring Road (BORR) toll road project IIB Kedung Badak-Simpang Yasmin is 2.6 km long.
PT MSJ President Director Hendro Atmodjo said that the facilities provided by the SMI constituted 70% of the total investment cost of Rp.825 billion. The remaining 30% of project investment funding is obtained from shareholders’ equity.
For information, with the CPF scheme, the contractor is required to work on the construction of the project first, then the fee will be paid later by the toll road business entity (BUJT) when the project is completed. Meanwhile, the contractor in the BORR Section II B project is PT Wijaya Karya (Persero) Tbk.
“This project has been completed and was inaugurated last June so that at this time we have to pay by getting funding from SMI,” Hendro said when contacted by Bisnis on Friday (08/03/2018).
Hendro explained that the loan loan has a 13-year repayment tenor since the signing of the financing agreement, including a grace period for the payment of principal debt until August 2019.
“The financing facility provided by the SMI has a long tenor and competitive interest so it is enough to help MSJ manage cash flow,” he said.
In total, he said that the financing facilities provided by SMI for the entire BORR project reached Rp1.2 trillion. Previously, the loan was used for construction of section I (Sentul Selatan-Kedung Halang) along 3.85 km and II A (Kedung Halang-Kedung Badak) along 1.95 km.
Hendro said his party would again seek a loan for the 2.7 km section III (Simpang Yasmin-Semplak) with an investment of Rp1.3 trillion, whose construction will begin in November. The plan, his party will again use the CPF scheme with fees paid after the contract is completed for 18 months.
“We will look for more loans, not necessarily from SMI again. Construction began in November and the plan is completed in March or April 2020, “he explained.
In September, Hendro said it would again conduct a contractor auction to work on section III A.
BORR Toll Road Section IIB is one of the National Strategic Projects (PSN). With the operation of the BORR Section IIB Toll Road, it is expected to reduce traffic congestion in the City of Bogor, especially on Jalan Sholeh Iskandar.
Overall, the BORR Toll Road is divided into four sections, namely Section I (South Sentul-Kedung Halang) of 3.85 km has been in operation since November 2009, Section IIA (Kedung Halang-Kedung Badak) of 1.95 km has been operating since May 2014, and the 2.65 km Section IIB (Kedung Badak-Simpang Yasmin) has been operating in June 2018.
Meanwhile, section III includes the 4.9km Yasmin-Salabenda Intersection which will be carried out in stages starting November.