Jakarta Bandung High-Speed Railway

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The project entails the design-construction-maintenance and operation of 142.3-kilometer long high - speed railway connecting Jakarta to Bandung. This is Phase I of the larger Java High - Speed Rail project. Phase II comprises the section from Bandung to Surabaya. The project will be developed by PT Kereta Cepat Indonesia China, a joint venture formed in October 2015 between a consortium of Indonesian state-owned companies, and China Railway International. The Indonesian consortium comprises PT Wijaya Karya, a construction company, railway operator PT Kereta Api Indonesia, toll-road builder PT Jasa Marga, and PT Perkebunan Nusantara VIII, a plantation company. Indonesian companies led by Wijaya Karya will hold 60% interest in the joint venture, while China Railway the remaining 40%. The name of the consortium is High-Speed Railway Contract Consortium (HRSCC). The trains are expected to carry 29,000 passengers per day. The project is developed as part of the One Belt One Road - OBOR Initiative. In September 2015, Indonesia awarded the rail project to the Chinese consortium in a competitive negotiation process with Chinese and Japanese firms. China won the project due to its readiness to provide guarantee-free loans, while Japan requested Indonesian Government funding. The project will be financed through a Chinese loan, without aid from the Indonesian State budget. China Development Bank will provide approximately 75% of the funding, and the rest (25%) will be arranged by the joint venture partners on a pro rata basis. The loan will be for a 40-year period, with a 10-year grace period. Total project finance is for $4.5 billion with the remaining equity funded ($1.5 billion). Financing agreement was signed in May 2017, and definitive financial closure was expected by year end. https://www.reuters.com/article/us-china-silkroad-indonesia/indonesia-china-consortium-sign-4-5-billion-loan-for-rail-project-idUSKCN18B0RX http://www.bakermckenzie.com/en/newsroom/2017/08/pt-kereta-cepat-indonesia-china-railway-project/ https://www.railway-technology.com/projects/jakarta-to-bandung-high-speed-rail/ https://www.railprofessional.com/news/indonesia-high-speed-rail-contract China Railway Corporation to be added to sponsors list;