Signing of Syndicated Project Financing Agreement for Umbulan Water Supply System
Jakarta, 3 January 2017 – Today PT Medco Energi Internasional Tbk. through its subsidiary PT Medco Gas Indonesia (“MedcoEnergi”) joined in a consortium with PT Bangun Cipta Kontraktor via PT Meta Adhya Tirta Umbulan (“META”) to appoint PT Indonesia Infrastructure Finance (“IIF”) as the mandated lead arranger (“MLAB”) for the syndicated financing of the Umbulan Water Supply System (“WSS”) Project.
The Umbulan WSS Project will be commissioned in mid-2019 and is a National Strategic Project to provide drinking water for 1.3 million people via a 4,000 liters per second, 93 km transmission pipeline from Umbulan springs to five Regional Water Companies in the Province of East Java.
The project requires an investment of around Rp 2.1 trillion through the Government and Enterprises Cooperation Scheme and is the 4th such project to be financed in Indonesia. META as the winning bidder will receive funding through a central government Viability Gap Fund which has also obtained a guarantee from PT Penjaminan Infrastruktur Indonesia. IIF and PT Sarana Multi Infrastruktur have also signed the syndicated financing for the Umbulan WSS project on 30 December 2016.
Hilmi Panigoro, President Director of MedcoEnergi, said, “With the support from the Government of RI, we continue to realize our commitment to develop and improve the utilisation of resources including water resources for the greater community and the economic growth in Indonesia.”