Karian Water Supply Project

pending

PT Karian Water Services (“KWS” or “the company”) is 70% owned by Korea Water Resources Corporate (K-Water) and 30% by PT Adhi Karya (ADHI), an Indonesian State-Owned Enterprise primarily active in the construction sector. KWS has been awarded a 34-year Public-Private Partnership (PPP) concession by the Government of Indonesia to develop and operate the 4,600L/s capacity Karian Water Treatment Plant (“WTP”) and approximately 20.2 km of transmission pipeline, situated in urban and peri-urban areas of South Tangerang City, Banten Province, Indonesia (“the Project”). Once completed, the Project will assist various municipalities across Greater Jakarta to improve reliable access to safe drinking water for approximately 2 million people, reducing reliance on ground water extraction as a source of domestic and industrial water, and mitigate land subsidence in one of the world’s fastest sinking cities.  The construction of the project will be undertaken through a single EPC contract.  Works for the WTP are scheduled to commence in May 2023 and for the transmission pipeline in August 2023. Total project construction time is expected to be 30 months. The transmission pipeline will be built on existing rights of way (RoW), and construction will have limited and temporary impacts.  The proposed IFC investments consist of (i) an IFC A Loan of up to US$60 million or Indonesian Rupiah (IDR) equivalent on IFC’s own account; (ii) an IFC B Loan of up to US$20 million on the account of B Loan participants; (iii) a loan in the amount of up to US$15 million from IFC in its capacity as implementing entity of the Finland-IFC Blended Finance for Climate Program; and (iv) an USD:IDR cross-currency swap with the Loan Equivalent Exposure of up to US$25 million. Total IFC’s own account investments exposure will not exceed 35% of the total project cost.