Mandiri to disburse Rp 6.7t for infrastructure projects in 2005<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
The country's largest lender Bank Mandiri is set to disburse Rp
\n6.7 trillion (US$722.14 million) of credits for infrastructure
\nprojects this year as part of its commitment for the next five
\nyears.<\/p>\n
Mandiri president director ECW Neloe said on Monday that after
\nreviewing projects offered by the government in toll roads,
\nairports, seaports, telecommunications and others, the bank was
\nprepared to provide about Rp 38 trillion of funds until 2009.<\/p>\n
"That's our current analysis, but it may develop in the
\nfuture," he said.<\/p>\n
One of the receivers is toll operator PT Jasa Marga, which on
\nMonday inked a deal of Rp 300 billion in loans to be repaid
\nwithin five years.<\/p>\n
The loans, with a fixed interest rate of 11 percent for the
\nfirst two years, will finance the constructions of three sections
\nof the Jakarta Outer Ring Road (JORR), which in total is expected
\nto cost Rp 1.5 trillion.<\/p>\n
Jasa Marga will provide some 15 percent of the cost from its
\ninternal funds and will finance the rest with the proceeds of its
\nbonds sale in late 2003.<\/p>\n
Since the Infrastructure Summit in January, the government has
\nbeen trying to market its projects to investors.<\/p>\n
The central bank last month announced new policies, which ease
\nlegal lending limit requirements up to 30 percent of a bank's
\ncapital from the previous 20 percent.<\/p>\n
Neloe said that toll road projects were lucrative as they had
\na predictable cashflow -- toll fees were rarely, if ever,
\nlowered.<\/p>\n
The projects also had a sustainable competitive advantage
\ncompared with other businesses, as it was impossible to have more
\nthan one toll road going from one destination to another, he
\nsaid.<\/p>\n
Jasa Marga's president director Syarifuddin Alambai said the
\nstate company has already secured four other toll road projects
\nof 192.5 kilometers in total worth about Rp 10 trillion.<\/p>\n
The toll roads, which will begin construction next year, are
\nbetween Cikampek and Palimanan in West Java, from Semarang to
\nSurakarta in Central Java, Gempol to Pasuruan in East Java, and
\nthe Bogor ring road, south of Jakarta.<\/p>\n
Alambai said the company had yet to determine the financing
\nfor the projects. Usually 30 percent of the funds needed for a
\nproject is taken from internal funds while the other 70 percent
\ncomes from outside sources like banks and bond issues.<\/p>\n
In September, the Capital Market Supervisory Agency refused to
\napprove Jasa Marga's plans to issue Rp 10 trillion of bonds,
\npending the completion of the highway bill that will separate the
\ncompany's roles as toll road regulator and operator.<\/p>\n
The government also rejected the company's plan to hold an
\ninitial public offering (IPO) last year.<\/p>\n
"Whether we'll conduct IPO now or later depends on
\ngovernment's policies," Alambai said. He would not say when a IPO
\nwas planned.<\/p>",
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