LMS Toll Project (IFC-26139)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Hold
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
LINTAS MARGA SEDAYA, PT
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 1,360.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 7, 2020

Disclosed by Bank Apr 3, 2012

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Cikampek (Cikopo) to Palimanan toll road (the "Project") forms a 116.4 km link in the partly completed 652 km Trans-Java toll road providing improved road access between Sumatra-Java-Bali. The Cikampek (Cikopo) to Palimanan toll road originally consisted of three sections that were merged in 2004 with the agreement of the three concessionaires. In 2006, PT Lintas Marga Sedaya (LMS - the "Project Company/Borrower) entered into a new 35-year concession agreement with the Government of Indonesia (GoI) that involves financing, technical planning, construction, operation and maintenance of the toll road. PLUS Expressways Berhad ("PLUS) and PT. Baskhara Utama Sedaya ("BUS") are the Project Sponsors.

The Project is a greenfield development that will link the existing Jakarta-Cikampek toll road to the Kanci-Pejagan toll road on the outskirts of Cirebon , taking traffic off national roads lying to the north and south of the proposed route that are currently used to link the existing toll roads. The total road development cost is estimated at US$1.36 billion, IFC's financing will be for up to US$170 million, consisting of a senior loan and a subordinated loan. Co-financing in the form of parallel long term senior debt is expected to come from other international financial organizations and Indonesian commercial banks.The toll road is divided into six sections for toll and construction purposes.

The dual carriageway consists of 4 x 3.6 m wide lanes, a 12.7 m median and 3 m wide outside verges. The Right-of-Way (RoW) is generally 60-100 m wide, with additional land permanently required for interchanges (6), overpasses (69), underpasses (30), pedestrian bridges (17) and rest areas (8). The road has a design speed of between 100- 120 km/h. Construction is due to start in Julyy2012 and be completed over a 30 month period by late 2014. Pre-construction activities commenced in 2008 with the Indonesian government assuming responsibility for land acquisition.

The road alignment was surveyed and pegged in 2010, and most commercial plantations within the right-of-way were cleared. LMS will engage a project management company to oversee construction and operations and will engage a number of construction contractors to construct the road.The proposed road alignment primarily traverses agricultural and plantation land, affecting 62 villages in 24 districts across five regencies (Purwakarta, Subang, Indramayu, Majalengka and Cirebon) in West Java Province.

Villages along the route can be categorized as rural-urban (Purwakarta, Cirebon and most of Majalengka); agricultural (Subang, Indramayu and part of Majalengka) and open agricultural (Purwakarta) the latter referring to connections with urban and industrial environments that provide employment (i.e., labor, services). The route traverses a range of land uses, including: rice fields (irrigated and rain-fed); mixed cultivation (rain-fed) including maize, cassava, peanut; forest plantations (including teak, mahogany and rubber), private production trees and house gardens, residential settlements and businesses.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total Project cost is estimated to be approximately US$1.36 billion. The proposed IFC investment is expected to include (i) a senior loan (A loan) and a subordinated loan (C loan) for IFC’s own account of up to US$170 million; and (ii) possibly a syndicated B loan of up to US$50 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Project Company is PT Lintas Marga Sedaya (“LMS”), an Indonesian special purpose company. LMS is majority held by PLUS Expressways Berhad (“PLUS”) from Malaysia. PT Baskhara Utama Sedaya (“BUS”), a consortium of three Indonesian companies, holds a minority stake. 

One of the Project Sponsor is PLUS, one of the largest toll road operator in Asia Pacific with ~1000km total length in operation. PLUS is majority owned by United Engineers Berhad (“UEM”), a leading engineering, construction, expressways, and asset and property development company and a wholly-owned subsidiary of Khazanah Nasional Berhad.


Contact Information
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PT. Lintas Marga Sedaya
Address: Jl. Cibitung II / 34, Kebayoran Baru, 
Jakarta 12170, INDONESIA.
Phone: +62 21 7245870
Contact: Wishnu Dewanto
E-mail: mailto:inquiry@lintasmarga.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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