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Dong Pi and TBB Sign a $1.3 Billion Loan to Finance Kinmen Bridge Follow-On Project

Dong Pi and TBB Sign a $1.3 Billion Loan to Finance Kinmen Bridge Follow-On Project
2017/08/15
Reporter: Chen Guan-Lin / Jinhu Township

To expedite the required funding for the Kinmen Bridge follow-on project, the contractor Dong Pi Co., Ltd. entrusted Taiwan Business Bank (TBB) to coordinate a 4-year syndicated loan of NT$1.368 billion dollars. The contract signing ceremony was held at Everrich Golden Lake Hotel yesterday (August 14th) afternoon. Witnessed by Deputy Magistrate Wu Cherng-Dean, Secretary-General Lin De-Gong and Deputy Speaker Sie Dong-Long of Kinmen County, Chairman Wang Yin-He of Dong Pi Co., Ltd. and Chairman Chu Rueen-Fong of the lead bank, TBB, signed the loan agreement.
The Kinmen Bridge is a major domestic marine engineering project. Despite the impact of two contract cancellations by contractors, resulting in several setbacks for Dong Pi Co., Ltd. when applying for financing, the TBB has stayed true to its aims of assisting small and medium enterprises and supporting the promotion of major construction in the country, securing sponsorship by the SME Credit Guarantee Fund in the forms of a machinery loan and receivable government bonds to finance a NT$1.368 billion syndicated loan. Its initiative gained support of the Chang Hwa Bank (CHB), which helped Dong Pi Co., Ltd. to push forward the NT$5.953 billion Kinmen Bridge follow-on construction project.
At yesterday’s signing ceremony, Deputy Magistrate Wu Cherng-Dean said that the Kinmen Bridge is a long-awaited, very important bridge to all Kinmen residents. Even though there had been “one twist and three setbacks”, we hope there will not be “a fourth setback”. Wu thanked the banking consortium for supporting the Kinmen Bridge project, and Minister Without Portfolio Wu Hong-Mo for his assistance. The Deputy Magistrate also noted that not only did Minister Wu discuss the Kinmen Bridge, but he also gave generous support when discussing emergency medical service issues. He therefore expressed his gratitude on behalf of his fellow citizens in Kinmen.
Chairman Wang Yin-He of Dong Pi Co., Ltd. expressed his gratitude to the lenders’ consortium for its trust and support. He explained that the Kinmen Bridge is a large-scale sea bridge project in the country. Its construction is affected by a number of factors such as marine weather, speedy ocean current, large tidal range, hard seafloor bedrock, and difficulties in offshore operations, which makes it much more difficult than land-based construction. To overcome the problems of currents, waves and tidal range, Dong Pi Co., Ltd. purchased large-sized equipment such as 650-ton and 800-ton bridge cranes and platform vessels, to reduce the impact of waves on the construction. Such construction equipment is rare in domestic marine engineering projects. It is hoped that through the modernization of construction equipment we can increase efficiency and ensure quality of the construction.
Wang Yin-He emphasized that Dong Pi Co., Ltd. is a professional marine engineering and bridge engineering enterprise, and won the Public Construction Golden Quality Award in 2015. They therefore have the ability and confidence to complete the project on schedule and at a high standard.
Chairman Chu Rueen-Fong of TBB stressed that the construction progress of Dong Pi Co., Ltd. is ahead of schedule at the moment. He is optimistic about the project and anticipates that the bridge can be open to traffic in the last quarter of 2020. Chu Rueen-Fong said that the incumbent responsibility of a bank is to support major economic developments of the country. The cooperation between TBB and CHB this time, in conjunction with the sponsorship of the SME Credit Guarantee Fund, has solved the capital needs of Dong Pi Co., Ltd., facilitating the materialization of the syndicated loan. He believed that the coordination of the central government, local government, and Dong Pi Co., Ltd., together with the financial support from the bank consortium, will ensure timely completion of the Kinmen Bridge project.
Wu Hong-Mo, Minister Without Portfolio of the Executive Yuan, admitted that he and the county government officials had been "very anxious" for some time about financing the Kinmen Bridge project. Now that the urgent need was solved, he thanked the banks for their support to facilitate this syndicated loan. He affirmed that Dong Pi Co., Ltd. is a preeminent enterprise with first-class technology, and “all it needs is a helping hand”. Minister Wu said that although there were some twists and turns in the past in the construction of Kinmen Bridge, he believed "the pain will pass and the beauty will stay." He looks forward to Dong Pi Co., Ltd. completing the project on schedule as expected, or even ahead of schedule. He also believes that the Kinmen Bridge will bring major benefits to tourism and minor benefits to transportation in Kinmen once it is open to traffic, which helps to bring in more business opportunities. In the future, the central government and Taiwan Area National Expressway Engineering Bureau (TANEEB) of the Ministry of Transportation and Communications (MOTC) will jointly supervise its construction quality.
To promote tourism in Kinmen and improve transportation between Kinmen and Lieyu islands, the construction of the 5,380-meter Kinmen Sea Bridge started in 2012. After the contracts with two contractors were terminated due to disqualification and construction delays, Dong Pi Co., Ltd. took over its follow-on construction with the most favorable bidding in December 2016. To overcome the problems of special granite terrains, offshore construction and the northeast monsoon, the company took the lead in the industry to purchase large-size offshore construction vessels, build a drilling-platform type construction platform, and adopt precast segmental bridge construction techniques to overcome the difficulties of construction. At present, the project is ahead of schedule; it is expected to be open to traffic in the last quarter of 2020.
At yesterday’s signing ceremony, distinguished guests include Wu Hong-Mo, Minister Without Portfolio of the Executive Yuan; Jaw Shing-Hau, Director-General of Taiwan Area National Expressway Engineering Bureau, MOTC; Wu Cherng-Dean, Deputy Magistrate of Kinmen County; Lin De-Gong, Secretary-General of Kinmen County; Sie Dong-Long, Deputy Speaker of Kinmen County Council; Wang Yin-He, Chairman of Dong Pi Co., Ltd.; Chairman Chu Rueen-Fong and General Manager Jhou Can-Huang of Taiwan Business Bank; and senior managers from the lenders’ consortium. The signing ceremony was a great success.

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  • Date:2017-12-12