Waskita Karya Optimistic Palembang LRT Development Project Completed Faster

INDUSTRY.co.id - Jakarta - PT Waskita Karya (Persero) Tbk estimates that Light Rail Transit (LRT) construction work or Palembang light rail is faster than planned.

"I projected the work can be completed in February 2018. Whereas in the July 2018 contract," said Director of Waskita Karya M. Choliq when met at the office of the Ministry of SOEs, Jakarta, Friday (03/11/2017) ago.

He said Waskita Karya had obtained an additional loan facility of Rp1.4 trillion, bringing the total amount of Rp5.990 trillion from Rp4.590 trillion.

This additional credit facility was obtained from PT Bank Negara Indonesia Tbk as mandated lead arranger and bookrunner, The Bank of Tokyo Mitsui Ltd. as mandated lead arranger, and PT Sarana Multi Infrastruktur Tbk, PT BPD South Sumatra-Bangka Belitung, PT BPD Jawa West and Banten, PT Bank Panin Tbk, PT BPD Papua, PT Bank ICBC Indonesia, and PT BPD Riau as the member of the syndicated creditor.

The loan facility will be used to support the company's main business activities in order to develop the LRT project in Palembang.

This is done in connection with the risk of payment because there is no certainty about the budget ceiling of the Department of Transportation in 2018 that depends on the 2018 state budget.

Therefore, if the transaction is not done, it can directly affect the company as a contractor in the development project of LRT Palembang.

Waskita Karya get an assignment from the government to build LRT Palembang, with investment contract value Rp10, 9 trillion. The project is targeted to be operational by June 2018.

LRT Palembang consists of cross service of Sultan Mahmud International Airport Badaruddin II-Palembang Great Mosque-Jakabaring Sport City. LRT Palembang will be equipped with 13 stations and 9 sub-stations, and has a Musi River bridge with 350 meter river span.