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||11 December 2009
Indonesian port signs MoU with IFC for $70m loan
The Jakarta International Container Terminal (JICT) has signed a Memorandum of Agreement with the International Finance Corporation (IFC), an investing arm of the World Bank Group, on a $70 million loan, the Jakarta Post reported.
The soft loan, which will partially fund a $160 million expansion plan at the Tanjung Priok Port, comprises a $30 million loan for IFC’s own account and a syndicated loan from HSBC of up to $40 million. JICT is funding the remaining $90 million of the expansion project out of its internal cash flow.
“The JICT has consistently attempted to increase efficiency and expand our capacity … Serving as Indonesia’s main gateway for the country’s trade, the JICT must be prepared to face the expected increase in Indonesia’s exports,” JICT finance director Nano Aryono said after the signing on Thursday.
The company’s expansion started in 2008 and is scheduled to be complete by the end of 2013. The expansion includes an additional 32 hectares of yard area, 22 additional cranes and other equipment. The JICT will also build parking areas and roads to integrate with the Jakarta Outer Ring Road, which is now under construction.
By the completion of the expansion project, JICT’s storage will increase from the current 2 million TEUs (Twenty-foot Equivalent Units) to 3 million TEUs per annum.
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