Makassar-Parepare Railway Infrastructure Project
|First Disclosure Date||:||June 2021|
In June 2021, IIF signed a syndication arrangement with other lenders to finance the construction and development of Siding Track Semen Tonasa and Garongkong Emplacement as part of the Makassar – Parepare Railway Project.
The railway, with total length of 142 km, comprised of 6 (six) segments, i.e. Segment A, Segment B, Segment C, Segment D, Segment E, and Segment F. The purpose of the development of Makassar – Parepare Railway as Phase I of National Trans Sulawesi Railway Network is to accelerate national distribution of infrastructure development in accordance with the 2015 – 2019 Medium Term National Development Plan. Specifically, the main objectives of the railway project development are to accelerate development through the increase of passenger and cargo movement, improving national connectivity, and increase the amount of goods to be transported through railway to 1.5 million tons in accordance to the Medium-Term National Development Plan.
The operation of Makassar – Parepare railway will create multiplier effect to the government, business environment as well as to the society. The government will benefit in reduction of road congestion resulting from logistic transport shift to railway, the business will benefit significantly from cost efficiency of transporting goods and the society will benefit from convenient passenger transport. The railway plans to link major ports in Makassar such as Garongkong port and Makassar New Port, as their function is to support the business entities in terms of goods movement and passenger transport. Furthermore, the railway connectivity will attract potential investor to South Sulawesi as prospective business area.
Based on the Social and Environmental Due Diligence (SEDD), this project categorized as Category A Project in term of risks and impacts. This categorization considers the nature and scale of the project and the potential project risks and impacts to the environmental and social aspect.
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Last Update: June 2021