Funds secured for Soekarno-Hatta International Airport rail link

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INDONESIA: Funds have been secured by PT Kereta Api Indonesia (KAI) and PT Railink to construct the much-awaited Soekarno-Hatta International Airport rail line.

Four major banks, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Mandiri and private lender Bank Central Asia (BCA) signed two Credit Agreements yesterday to fund the project.

The syndicate bank agreed to fund 84% of the total cost of infrastructure development at Rp 1.45 trillion (US$112 million) for work done by PT KAI.   

PT Railink and the syndicate bank agreed for 85% of the total cost of procurement which amounts to Rp 612 billion (US$47 million).

According to KAI finance director Kurniadi Atmosasmito the rest of the costs will be financed by companies’ own cash flow.

Railink has already ordered 10 six-car trainsets, director Heru Kuswanto said. The procurement of the trains will take 14 months to complete and operations of the new railway are expected to commence in 2016.

Railink, the operator of the future airport rail link, is a joint venture between KAI, the operator of Indonesian Railways, and PT Angkasa Pura II, a state enterprise of the Indonesian Department of Transport that is responsible for the management of airports in Indonesia.

The construction of a 36.3 km double track railway will begin this year. It will connect Manggarai train station in South Jakarta with Soekarno-Hatta Airport Northwest of Jakarta.

Once completed, the Soekarno-Hatta will become the second airport in the country with its own railway, after the Kualanamu International Airport.