| JICT |
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27117 |
| Company name | JICT |
| Country |
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| Sector1 | Port and Harbor Operations |
| Environmental category | B |
| Department | Reg Ind, Infra & Nat Res, ASIA |
| Status | Active |
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| Date SPI disclosed | October 9, 2009 |
| Projected board date | November 9, 2009 |
| Date revised SPI disclosed | October 13, 2009 |
| Previous Events | Invested: January 14, 2010
Signed: December 10, 2009
Approved: November 26, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| PT Jakarta International Container Terminal (“JICT” or “Company”), located in the port of Tanjung Priok, is the largest container terminal in Indonesia and handled almost 2 million Twenty-Foot Equivalent Units (“TEUs”) in 2008. The proposed project includes (i) developing approximately 32 hectares of container yard, roads, parking and an administrative facility; (ii) acquiring new container handling equipment for the quay and the container yard; and (iii) constructing up to 24 entry gates and about 2 km of access roads. The capital investments will increase JICT facility capacity to 3 million TEUs annually, improve operating efficiency, and address existing congestion problems. This will help develop an efficient and sustainable transport system for the country and improve the country’s port infrastructure to facilitate Indonesia’s long term international trade growth and reduce handling costs. |
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| Project sponsor and major shareholders of project company |
| JICT is owned 51% by Hutchison Ports Jakarta Pte Ltd, a member of Hutchison Port Holdings (“HPH”) group and 48.9% by Indonesian state-owned port operator PT. Pelabuhan Indonesia II (“Pelindo II”). HPH is the world's leading port investor, developer and operator with interests in a total of 300 berths in 49 ports, spanning 25 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia. Pelindo II operates 12 of Indonesia’s largest ports. |
| Total project cost and amount and nature of IFC's investment |
| The project is estimated to cost $160 million. The proposed IFC financing is an investment of up to $30 million for IFC’s own account and a syndicated B loan of up to $40 million. |
| IFC investment as approved by Board |
| 30 million (USD) |
| Product Line | IFC Investment (million USD) |
| Risk Management | |
| Guarantee | |
| Loan | 30 |
| Equity | |
* These investment figures are indicative |
| Location of project and description of site |
| JICT is located on 100 ha of industrial land in Western Java in the port of Tanjung Priok in Jakarta the capital of Indonesia. The site has access to highway transportation. |
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| Anticipated development impact of the project |
| The project will help strengthen the port sector in Indonesia by increasing container handling capacity and improving efficiency levels at JICT. The increased capacity at JICT will help ease congestion otherwise expected in the near future as traffic at the container terminal reaches capacity. The accompanying improvements in service levels will benefit port users including shipping lines, exporters, and importers. The project will also create direct and indirect employment opportunities and increase revenues for the Government of Indonesia through higher tax payments and royalty and lease payments. |
| IFC's expected development contribution |
| IFC will be providing long-term financing at a maturity necessary for the project’s completion but unavailable in the commercial market. IFC’s involvement will also help send a positive signal to other lenders and improve the terms of the financing for the project. IFC’s support is increasingly important during the current scenario of global economic crisis. In this case, IFC is not only supporting private sector led growth in infrastructure, but also playing a counter cyclical role in promoting foreign direct investment in a less than optimal environment. |
| Environmental and social issues - Category B |
| This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The Project is designed to meet both Indonesian environmental standards and IFC Performance Standards on Social and Environmental Sustainability. For further information please see the Environmental and Social Review Summary (ESRS). |
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| For inquiries about the project, contact: |
Mr. Derek Pierson
President Director
Jakarta International Container Terminal
Jl. Sulawesi Ujung No.1, Tanjung Priok
Jakarta 14310
Tel: +62 21 4390 5111 Ext.1121-23
Fax: +62 21 4390 2446
Email: ca@jict.co.id |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Corporate Affairs Department
Jakarta International Container Terminal
Jl. Sulawesi Ujung No.1, Tanjung Priok
Jakarta 14310
Tel: +62 21 4390 5111 Ext.1121-23
Fax: +62 21 4390 2446
Email: ca@jict.co.id |
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