Citra toll road companies get $650 million in loans

Citra toll road companies get $650 million in loans

JAKARTA (JP): Two toll road development firms under the
politically-well-connected Citra Group have got syndicated loans
totaling Rp 1.53 trillion (US$650 million) from domestic banks to
build highway projects in the city.

The chairwoman of the Citra Group, Siti Hardiyanti Rukmana,
who is President Soeharto's eldest daughter, and executives of
the arranging banks signed the loan documents for PT Citra Bhakti
Margatama Persada and PT Citra Mataram Satriamarga Persada here
on Wednesday.

Of the total loans, Citra Bhakti obtained Rp 929.9 billion
from 26 local banks. This was co-arranged by state-owned Bank
Dagang Negara and publicly-listed Bank PDFCI, to finance the
construction of a 19.2-kilometer toll road linking Cikunir in
Bekasi, West Java, and Tanjung Priok in North Jakarta.

R.C. Eko Santoso Budianto, a director of Bank PDFCI, said
recently that the syndicated loans involved only local banks
because foreign banks were not interested in financing toll road
projects, whose revenues are denominated in rupiah.

Meanwhile, Citra Mataram got a Rp 602 billion syndicated loan
from 20 local banks, co-arranged by Bank Danamon, Bank
Internasional Indonesian, Bank Niaga and Bank Dagang Nasional
Indonesia -- all privately owned -- to finance a 11.2-km highway
linking Pondok Pinang in South Jakarta and Kebon Jeruk in West
Jakarta.

Both toll road projects are part of the 60-km Jakarta outer
ring toll road.

The construction of both toll roads, which is expected to
finish in 1999, commenced long before the syndicated loans were
signed. (rid)