AirClean Jakarta signs loan for water network
PT AirClean Jakarta has signed a IDR8.874 trillion ($584 million) loan agreement for the construction of a clean water pipeline network in DKI Jakarta.
The lenders are Bank Central Asia (BCA), OCBC Bank, OCBC NISP, State Savings Bank (BTN), National Pension Savings Bank (BTPN), KB Bukopin, China Construction Bank (CCB Indonesia) and PT Sarana Multi Infrastruktur (SMI).
The Moya Indonesia Holding subsidiary will begin construction of the 2,500km network with 350,000 household connections in April 2023.
The development of piped access to drinking water is being carried out because DKI Jakarta has the challenge of decreasing groundwater levels as a result of groundwater extraction. It is necessary to improve piped drinking water services, where currently the service coverage is still 65%. A water supply of 31,875 litres per second is needed in 2030 to achieve 100% coverage of piped drinking water services.
"Today, downstream side financing will be realised through the signing of a credit facility between PT Air Clean Jakarta and the Creditor Syndicate for the first two years with a capital cost of IDR12 trillion consisting of loans of IDR8.8 trillion and shareholder equity," added Minister of Public Works and Public Housing Basuki.
