Technical Assistance Consultant’s Report
Project Number: 39386 (TA 4728) January 2008
Indonesia: Support for Infrastructure Development
Prepared by DSCL Energy Services Company Ltd
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.
Republic of Indonesia National Development Planning Agency (BAPPENAS)
SUPPORT FOR INFRASTRUCTURE DEVELOPMENT
ADB TA 4728-INO
Progress Report No. 7 (Final)
September–December 2007
Volume I: Main Report
18 January 2008
CONTENTS
I. Introduction ...... 1 A. Background 1 B. TA Objective and Outcome 2 C. TA Scope and Cost 2 II. TA Implementation ...... 4 A. SID Team 4 B. Work Plan and Resource Utilization 5 III. Activities During September-December 2007 ...... 6 A. KKPPI Secretariat 6 B. Perpres 67/2005 Revision 7 C. OGM Formalization 11 D. Coordination with the World Bank 12 E. Framework for Public Service Obligations 12 F. Road Sector 15 G. Transport Sectors 19 H. Water Supply Sector 22 I. Power Sector 24 J. Telecommunications Sector 26 K. Written Outputs 27 L. Attended Meetings 30 IV. Conclusions and Recommendations...... 31 A. Infrastructure Reforms 31 B. PPP Projects 32 C. Contribution of the SID TA 34 D. Agenda for 2008 35
APPENDIXES 1. Revised Terms of Reference 36 2. Cost Estimates and Financing Plan 39 3. Staffing Schedule 40 4. List of Contracts 41 5. Organization Chart of the SID Team 42 6. Updated Work Plan 43 7. Disbursement Status 45 8. Structure of the Perpres 67/2006 Replacement 46 9. Meetings Attended by the SID Team 48 10. Status of Model PPP Projects 52 11. Status of Other Regional PPP Projects 55 12. Written Outputs and Meetings During 2006-2007 59 13. Thematic Index of Written Outputs 60 14. PPP Program for 2008 81
ATTACHMENT: Written Outputs (see Volume II)
CURRENCY EQUIVALENTS (as of 31 December 2007)
Currency Unit – rupiah (Rp) Rp1.00 = $0.0001075 $1.00 = Rp9,300
ABBREVIATIONS
ADB – Asian Development Bank APBN – Anggaran Pendapatan dan Belanja Negara (National State Budget) BAPPENAS – Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) BPJT – Badan Pengatur Jalan Tol (Indonesian Toll Road Authority) BPN – National Land Agency BPP SPAM – National Water Supply System Development Supporting Agency B2B – business-to-business CMEA – Coordinating Ministry of Economic Affairs DG – Directorate General DPM – domestic person-month FIRR – financial internal rate of return GDP – gross domestic product IDPL – Infrastructure Development Policy Loan IFC – International Finance Corporation IICE 2006 – Indonesia Infrastructure 2006 Conference and Exhibition IPM – international person-month IPP – independent power producer IRSDP – Infrastructure Reform Sector Development Program JTD – Jakarta Toll Road Development KKPPI – National Committee for the Acceleration of Infrastructure Provision LNG – liquefied natural gas MCI – Ministry of Communication and Information Technology MEMR – Ministry of Energy and Mineral Resources MOHA – Ministry of Home Affairs MOF – Ministry of Finance MOT – Ministry of Transportation MOU – Memorandum of Understanding MPW – Ministry of Public Works MSOE – Ministry of State-Owned Enterprises OGM – Operational Guidelines Manual PDAM – regional water supply utility PDF – Project Development Facility Perpres – Peraturan Presiden (Presidential Regulation) PLN – State Electricity Corporation PM – person-month PMU – Project Management Unit PPITA – Private Provision of Infrastructure Technical Assistance PP – Peraturan Pemerintah (Government Regulation) PPP – public-private partnership PQ – prequalification PSO – public service obligation P3CU – PPP Central Unit RMU – Risk Management Unit ROE – regionally owned enterprise SID – Support for Infrastructure Development SOE – state-owned enterprise SPC – special purpose company TA – technical assistance TAS – Technical Advisory Services TOR – terms of reference
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I. INTRODUCTION
A. Background
1. Despite many remarkable achievements in the past, Indonesia’s infrastructure service coverage is low by regional standards. The 1997 financial crisis greatly aggravated the situation as many planned public and private infrastructure projects were cancelled or suspended. While Indonesia invested more than 5% of its gross domestic product (GDP) in infrastructure before the crisis, this figure has fallen well below 3% in the past few years. The Government has set ambitious macroeconomic targets for its term ending in 2009: (i) accelerate the GDP growth from 4.5% in 2003 to 7.6% (average of 6.6%), (ii) increase the investment/GDP ratio from 20.5% in 2003 to 28.4%, (iii) reduce the unemployment rate from 9.7% in 2004 to 5.1%, and (iv) halve the poverty rate from 16.6% in 2004 to 8.2%. It has identified the acceleration of infrastructure development as essential for achieving these macroeconomic targets. Since the estimated investment requirements far exceed the available public sector funding, the Government wishes to bridge the gap with the help of large-scale private sector participation. Public-private partnerships (PPPs)—contractual arrangements between the public sector and a private sector party for the private delivery of public infrastructure services—are the preferred approach for increasing private sector participation.
2. The Government has been aware of the urgent need to improve the investment climate through policy reforms that would liberalize markets and allow competition from new entrants, strengthen regulatory arrangements, improve cost recovery, and establish effective mechanisms for dispute resolution. At the Indonesia Infrastructure Summit held in Jakarta in January 2005, President Susilo Bambang Yudhoyono led high-level government officials in expressing the political will to accelerate infrastructure development and proceed with the necessary sector reforms. At the Indonesia Infrastructure Conference and Exhibition in November 2006 (IICE 2006), this commitment was reiterated, and a number of reforms presented that established the policy, legal, regulatory and institutional framework for PPPs.
3. Strong coordination at the central level is essential to ensure a successful operationalization of the new framework and a consistent approach to PPP projects across the infrastructure sectors. The high-level inter-ministerial National Committee for the Acceleration of Infrastructure Provision (KKPPI), created in 2001 and strengthened in 2005, is responsible for such coordination. The KKPPI, which reports directly to the President, is co-chaired by the Coordinating Minister of Economic Affairs and the State Minister of National Development Planning/Chairman of the National Development Planning Agency (BAPPENAS), the latter acting as the Executive Chair. Its members include the heads of the Ministry of Finance (MOF), Ministry of Home Affairs (MOHA), Ministry of Energy and Mineral Resources (MEMR), Ministry of Public Works (MPW), Ministry of Transportation (MOT), Ministry of Communication and Information Technology (MCI), and Ministry of State-Owned Enterprises (MSOE); and the Cabinet Secretary. The main tasks of the KKPPI are to formulate strategies and policies for the acceleration of infrastructure development, coordinate and supervise their implementation by the sector ministries and local governments, formulate an implementation policy on public service obligations (PSO) for infrastructure, and solve problems impeding infrastructure development. The KKPPI is served by a Secretariat headed by the Deputy Minister for Infrastructure and Regional Development in the Coordinating Ministry of Economic Affairs (CMEA) and the Deputy Minister for Infrastructure and Facility in BAPPENAS.
4. For the day-to-day coordination and management of PPP transactions, a network consisting of the PPP Central Unit (P3CU) under the KKPPI Secretariat and PPP nodes in the sector ministries is being established. The sector ministries and local governments are responsible for the preparation and execution of the PPP transactions. The P3CU, on the 2 other hand, will be responsible for ensuring policy consistency, quality control and transparency. It will establish standards and principles that all transactions must follow, and monitor the execution for compliance. Given the massive investment needs against limited capital resources, another important responsibility of the P3CU will be to prioritize projects across sectors and regions, and review requests for government support before passing them on to MOF. During the transitional period before the P3CU is established and fully operational, the KKPPI Secretariat has to carry out these functions.
B. TA Objective and Outcome
5. The objective of TA 4728-INO: Support for Infrastructure Development (SID) is to help, together with various other interventions, significantly increase infrastructure investments and thereby support the achievement of the Government’s economic growth and poverty reduction targets. Its expected outcome is the capability of government agencies to formulate and implement policy and regulatory reforms and to prepare, execute and monitor PPP projects in a coordinated manner.
6. The SID TA, which was approved by the Asian Development Bank (ADB) on 12 December 2005, has been the precursor to a much larger package of ADB support for increasing both public and private investment in infrastructure. The package, called the Infrastructure Reform Sector Development Program (IRSDP) and approved on 21 November 2006, comprises the following components:
(i) Loan 2263-INO: a $400.0 million policy-based loan for Subprogram 1, financed from ADB’s Ordinary Capital Resources (to be followed by similar single-tranche loans for Subprograms 2 and 3 in 2008 and 2010, respectively)
(ii) Loan 2264 (SF)-INO: a Special Drawing Rights (SDR) 18.1 million project loan from the Asian Development Fund for the Project Development Facility (PDF)
(iii) Grant 0064-INO: a $7.56 million grant provided by the Government of the Netherlands for the PDF
(iv) TA 4872-INO: a $2.0 million grant from ADB for Enhancing Private Sector Participation in Infrastructure Provision.
C. TA Scope and Cost
7. To avoid duplication of work with the IP3 consultants engaged by BAPPENAS for the World Bank-financed assignment to develop the P3CU and its network, the TA scope was reduced in March 2006 from six to the following five main tasks (for details, see the revised terms of reference (TOR) in Appendix 1)1:
1. Support and capacity building in the KKPPI Secretariat in BAPPENAS 2. PSO framework 3. Sector regulation 4. Project screening and preparation 5. Preparation of the IICE 2006
1 Given the process character of infrastructure sector reforms, PPP transactions and the related capacity building, it was not possible to fully define all TA tasks and activities during the formulation and design stage. It was agreed that flexibility in TA implementation was needed that would allow the tasks and activities to be modified, new ones to be added, and consultant resources to be reallocated according to emerging needs. 3
8. At approval, the total cost of the SID TA was estimated at $2,500,000 equivalent, including foreign exchange of $1,600,000 and local currency of $900,000 equivalent. The Government requested ADB to provide a grant of $2,000,000 equivalent to cover the entire foreign exchange cost and $400,000 equivalent of the local currency cost. The Government undertook to contribute the remaining cost in kind by providing office accommodation in Jakarta, counterpart staff, secretarial support, and workshop facilities. Detailed cost estimates and the financing plan are in Appendix 2. 4
II. TA IMPLEMENTATION
A. SID Team
9. As of 31 August 2007, the SID team had consisted of the following 18 international and national consultants:2
• Vladimir Bohun as the Team Leader/ Senior Infrastructure Advisor • Bambang Bintoro Soedjito as the Deputy Team Leader/Senior PPP Specialist • Darwin Trisna Djajawinata as the Infrastructure Sector Specialist (Multi-Sector) • Dedi Budianto as the Water Supply Engineer for Task 43 • Dodi Miharjana as the Infrastructure Sector Specialist (Water Supply/Energy) • Femi Sastrena as the Senior Energy Specialist for Task 44 • Greg Wood as the Senior Toll Road Specialist for Task 4 • Irawati Hermawan Adhyaksa as the Legal Advisor • Irman Boyle as the Infrastructure Sector Specialist (Energy/Telecommunications) • Ita Riyadi as the KKPPI Administrative Manager for Task 1 • Kawik Sugiana as the KKPPI Executive Secretary for Task 1 • Lukas Hutagalung as the Infrastructure Sector Specialist (Water Supply) • Revie Hamzah as the Office Manager • Rheno Iskandarsyah as the Legal Consultant for Task 3 • Robert Borgstrom as the Senior Regulatory Expert for Task 3 • Robert Parra as the Senior PPP Finance and Transaction Specialist (Water Supply/Energy) • Sena Indrapermana Soerono as the Infrastructure Sector Specialist (Roads/Transport) • Trevor Bull as the Senior PSO Expert for Task 2
10. During the reporting period, the contracts of Dedi Budianto, Femi Sastrena, Reno Iskandarsyah, Robert Borgstrom, Robert Parra, and Trevor Bull ended, while those of Bambang Bintoro Soedjito, Darwin Trisna Djajawinata, Dodi Miharjana, Irawati Hermawan Adhyaksa, Irman Boyle, Lukas Hutagalung, Revie Hamzah, Sena Indrapermana Soerono and Vladimir Bohun were extended, mostly until the end of February 2008, to provide support to BAPPENAS before the fielding of the Technical Advisory Services (TAS) team under the PDF.5 In addition, the following last two consultants were recruited:
• Rahman Fajriyansah as the Legal Consultant for Task 2 • Reko Kurniawan as the IT Assistant for Task 1
11. The staffing schedule and a list of the ongoing and completed contracts are in Appendixes 3 and 4, respectively. The organization chart of the SID team is shown in Appendix 5. Overall, 9 international and 15 national consultants had been members of the SID team since the start of the TA. Only three of them had short-term contracts of up to 2- month duration.
2 The list excludes four consultants who had completed their contracts earlier: (i) Tony Mack as the Senior Infrastructure Economist, (ii) Jan van Rees as the Senior Telecommunications Specialist, (iii) Satrio Dewo as the Economist/Financial Analyst (Telecommunications), and (iv) Robert Brown as the Senior PPP Transport Sector Specialist. 3 For the pre-feasibility study for the Bandung water supply project. 4 For the gas supply availability study for the Pasuruan power project. 5 Some members of the SID team are expected to become part of the TAS team, thus ensuring continuity and preserving institutional memory. 5
B. Work Plan and Resource Utilization
12. To provide sustained support to the KKPPI Secretariat, the TA closing date was extended from 31 March 2007 to 31 March 2008. An updated work plan up to the TA closing is in Appendix 6. In terms of person-months (PMs), the ongoing and completed contracts listed in Appendix 4 total about 53 PMs for the international consultants and 158 PMs for the national consultants. As shown in Table 1, this is well above the original estimate, particularly for the national consultants. The 1-year TA extension and the much more intensive use of the national consultants have benefited both BAPPENAS and the domestic consulting industry. They have been made possible by the use of individual consultants, rather than a consulting firm as originally envisaged. This change in procurement arrangements has made the TA coordination and administration quite a challenging task, but it has resulted in significantly lower-than-budgeted remuneration rates for both the international and national consultants.
Table 1: PM Inputs of Consultants
Consultants Estimate Actual Increase International 52.0 53.2 1.2 (2%) National 65.0 157.9 92.9 (143%) Total 117.0 211.1 94.1 (80%)
13. Disbursement details are given in Appendix 7. As of 31 December 2007, $1,601,112 of the $2 million TA grant had been disbursed. This represented a disbursement ratio of 80%, an increase from the 53% ratio at the end of August 2007. The total contracted amount reached $1,890,301, leaving a balance of $109,699 for the final 3 months of the SID TA. As shown in Table 2, this balance is adequate to accommodate the pending contract variations for contract extensions mentioned in para. 10, as well as the following workshops planned for January-February 2008:
(i) Final workshop on Presidential Regulation (Perpres) 67/2005 in Jakarta, and (ii) Final Operational Guidelines Manual (OGM) workshop in Jakarta.
Table 2: Resource Availability
Item Amount ($’000) Budget (ADB-financed part, including contingency) 2,000 Less contracts as of 31 December 2007 (1,890) Uncommitted balance 110 Less pending contract variations (78) Less workshops during January-March 2008 (20) Remaining reserve 12
14. The above-mentioned two workshops will bring the total number conducted under the SID TA to eight.6 Although only one workshop was included in the original TOR and cost estimate, the additional ones have proved to be an effective approach for disseminating relevant information, receiving feedback from the various stakeholders, and socializing the proposed reforms.
6 The previous workshops were related to non-compliant PPP projects (in Tangerang in February 2007), OGM (in Batam in July 2007), Perpres 67/2005 (in Jakarta in August 2007 and in Bandung in September 2007), Task 3 (in Jakarta in September 2007), and Task 2 (in Jakarta in December 2007). In addition, two meetings of Echelon I officials were organized under the SID TA (on the IRSDP in Jakarta in May 2007 and on Perpres 67/2005 and model PPP projects in Jakarta in September 2007). 6
III. ACTIVITIES DURING SEPTEMBER-DECEMBER 2007
A. KKPPI Secretariat
15. Following the review undertaken during the previous period with regard to the responsibilities and operations of the KKPPI Secretariat, the demarcation of these responsibilities between BAPPENAS and CMEA, and the work program of the KKPPI, a number of measures were initiated to revitalize the KKPPI and its Secretariat, including enhancing the institutional arrangements, formulating and implementing standard operating procedures, making the KKPPI Secretariat “a front liner” for PPP approach to infrastructure provision, and setting a priority agenda for the KKPPI. Based on his review and discussions, the Executive Secretary drafted a report that will be finalized and circulated in January 2008.
16. During the reporting period, the Executive Secretary helped arrange and conduct six KKPPI meetings at the ministerial and Echelon I levels (see Table 3). This reflected intensified activities of the KKPPP Secretariat as no such meetings took place during the previous months.
Table 3: KKPPI Ministerial and Echelon I Meetings
Meetings/Topics Date Location Chair KKPPI Echelon I Meeting: 27 Sep 07 Four Seasons Dedi Priatna, Revision of Perpres 67/2005 Hotel KKPPI Secretary II Progress of PPP model Projects 15th KKPPI Ministerial Meeting: 1 Nov 07 CMEA Prof. Boediono, Revision of Perpres 67/2005 Coordinating Progress of PPP model Projects Minister of Economic Affairs KKPPI Echelon I Meeting: 9 Nov 07 BAPPENAS Dedi Priatna, Land acquisition for PPP toll road KKPPI Secretary II projects KKPPI Echelon I – Investor Meeting: 15 Nov 07 CMEA Bambang Land acquisition for PPP toll road Susantono, KKPPI projects Secretary I BAPPENAS,MOF and CMEA Echelon I 23 Nov 07 Dharmawangsa Bambang Meeting: Hotel Susantono, KKPPI Government support for land Secretary I acquisition for PPP toll road projects KKPPI Echelon I Meeting: 18 Dec 07 Wisma Bakrie 2 Dedi Priatna, Unsolicited proposal for six toll roads in KKPPI Secretary II Jakarta KKPPI Limited Ministerial Meeting (CMEA, 3 Jan 08 CMEA Prof. Boediono, BAPPENAS, MPW, MOF, and National Coordinating Land Agency (BPN)): Minister of Government support for land Economic Affairs acquisition for PPP toll road projects Vice President - KKPPI Limited Ministerial 4 Jan 08 Vice President Jusuf Kalla, Vice Meeting: CMEA, BAPPENAS, MPW,MOF, Office, Merdeka President BPN Selatan, Government support for land acquisition for PPP toll road projects
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B. Perpres 67/2005 Revision
1. Meetings and Workshops 17. Perpres 67/2005 issued on 9 November 2005 is a cross-sector regulatory framework on the cooperation between the Government and business entities in the provision of infrastructure. The main purpose of Perpres 67/2005 is fourfold: (i) to establish a credible regulatory framework, (ii) to ensure clarity and predictability in the rules of the game for infrastructure investment in accordance to international best practice, (iii) to enhance the sustainability of infrastructure provision, and (iv) to ensure a transparent, accountable, fair and competitive procurement process. While Perpres 67/2005 is quite comprehensive and aligned with what most international financiers would look for in terms of technical, governance, and social and environmental safeguards requirements, there are some elements important for facilitating PPPs in infrastructure provision that are not adequately dealt with (e.g., the definition of a contracting agency, the approach to PPP-type projects proposed for implementation by state-owned enterprises (SOEs), the clarity on the scope of infrastructure, the process and mechanism of public consultations, the provision of government support for PPP projects of local governments, the definition of financial closure, and the re-bidding process). Consequently, there is an urgent need to replace Perpres 67/2005 with a more comprehensive and holistic PPP regulatory framework covering the entire PPP project life. 18. During the September-December 2007 period, the process of drafting a new Perpres continued through formal and informal discussions with the relevant stakeholders. In total, there were eight meetings, including three workshops, three informal meetings, and two KKPPI deliberations (one at the Echelon I level and the other at the ministerial level):
(i) Two-day workshop on drafting the new Perpres in Bandung on 6-7 September 2007. The workshop was well attended by 42 participants representing cross-sector ministries and agencies: MOF (4), MOHA (1), CMEA (6), BAPPENAS (8), and the Office of Vice-President’ Secretariat (1); sector ministries: MPW (3), MOT (6), and MEMR (1); regulators: the Indonesian Toll Road Authority (BPJT - 2), and the National Water Supply System Development Supporting Agency (BPPSPAM - 1); and multilateral agencies: ADB (1) and SID team (8).
(ii) Echelon I KKPPI Secretariat meeting to discuss the draft new Perpres in Jakarta on 27 September 2007. The meeting was jointly chaired by the two KKPPI Secretaries and attended by 41 participants coming from cross-sector ministries and agencies: MOF (3), MOHA (4), CMEA (3), BAPPENAS (4), Secretariat Cabinet (1), BPN (1) and the Office of Vice-President’ Secretariat (1); sector ministries: MPW (7), MOT (7), and MEMR (3); regulators: BPJT (2), BPH Migas (2) and BPPSPAM (1); and SID team (4).
(iii) KKPPI Council of Ministers deliberation on the draft new Perpres and progress of the 10 model projects in Jakarta on 1 November 2007. In his function as the KKPPI Chairman, the CMEA Minister chaired the meeting that was attended by the Ministers of National Development Planning/Head of BAPPENAS, State-Owned Enterprises, Public Works, Communication and Informatics, and Trade. The Ministers of Home Affairs and Cabinet Secretariat were represented by the respective Echelon I officials. The two KKPPI Secretaries also attended the meeting, together with officials representing CMEA (6), BAPPENAS (3), MOF (2), MOT (3), MCI (2), MEMR (2), Ministry of Trade (1), BPN (1), BPJT (1) and BPPSPAM (1). 8
(iv) Informal meeting with MOHA's Director for Deconcentration and Cooperation, Deputy Directors for Cooperation between Local Governments, and for Cooperation between Local Governments and the Third Party, and Head of Section for Cooperation between Local Governments in Region I in Jakarta on 19 November 2007. The objective of the meeting was to identify critical issues related to the intention to harmonize the draft new Perpres with Government Regulation (PP) 50/2007 on the Implementation Procedure for Local Government Cooperation.
(v) Informal meeting with MOF's Director for State Assets I, and Deputy Directors for State Assets I C and I D in Jakarta on 20 November 2007. The meeting aimed at identifying relevant issues related to the intention to harmonize the draft new Perpres with PP 6/2006 on the Management of State/Regional Assets.
(vi) Workshop on the harmonization of the draft new Perpres with PP 6/2006 and PP 50/2007 in Jakarta on 21 November 2007. This meeting was a follow- up of the above two informal meetings. It was organized by the KKPPI Secretary II and attended by representatives of MOF (7), MOHA (5), CMEA (2), State Secretariat (1), Cabinet Secretariat (1), BAPPENAS (3) and SID team (6). It was felt that the scope of PP 50/2007, particularly in the context of cooperation between local governments and a third party including the private sector, did overlap with the draft new Perpres but was consistent with the basic PPP principles adopted therein. MOHA's Directorate General (DG) of Public Governance requested technical assistance to develop an implementing guideline for PPP for local governments.
(vii) Informal meeting with MOF's Deputy Director for Institutional Affairs, Directorate for the Management of Government Investment in Jakarta on 14 December 2007. Its purpose was to discuss potential linkages and identify important issues for harmonizing the draft new Perpres with PP 8/2007 on Government Investment. This discussion was useful as MOF had drafted a PP 8/2007 replacement that seemed not to overlap with the draft Perpres and to be consistent with the basic PPP principles adopted therein.
(viii) Workshop on harmonization of the draft new Perpres with PP 6/2006 and PP 8/2007 in Jakarta on 18 December 2007. This workshop was a continuation of the first workshop with a focus on the issue of harmonizing the PPP scheme under PP 6/2007 (with its main objective of generating maximum state revenue) and the PPP modality under the draft new Perpres (with its main objective of providing sustainable high-quality infrastructure services for the public). The workshop was attended by representatives of MOF (8), MOHA (2), Ministry of Justice and Human Rights (2), CMEA (3), BAPPENAS (5), and SID team (9).
2. Major Changes 19. The above formal and informal deliberations with the various stakeholders provided important feedback for the drafting of the new Perpres. The following major changes have been made taking into account this feedback:
(i) There has been a major structural change. Unlike Perpres 67/2005 that focuses on the basic PPP principles and procurement process, the draft Perpres provides the full coverage of the entire PPP project life cycle comprising planning, selection and prioritization of PPP projects; PPP project preparation; procurement 9
of the business partner (PPP project transaction); project implementation; post- transaction monitoring; treatment of unsolicited projects; and business licensing procedure.
(ii) The definition of a contracting agency has been made more explicit to include SOEs or regionally owned enterprises (ROEs) that are authorized to undertake, for and on behalf of the central or local government, cooperation (partnership) with a business entity in the provision of infrastructure. This provision aims at eliminating the so-called business-to-business (B2B) practice by SOEs and ROEs in dealing with private sector investors.
(iii) The KKPPI’s role in prioritizing PPP projects has been made explicit.
(iv) The provision on public consultations for PPP projects has been expanded.
(v) The scope of government support has been expanded to include both contingent and non-contingent risks (liabilities). Furthermore, the provision covers government support to national projects (under the responsibility of sector ministries), government support to local projects, local government support to local projects, and local government support to national projects.
(vi) The proposed provision on land availability before bidding 7 has generated a major debate. Even at the KKPPI meeting on 1 November 2007, it was suggested not to incorporate this provision in the new Perpres as it needed further investigation, particularly in relation to the land capping issue. However, in the latest meeting with the Vice President on 4 January 2008, an important decision has been made on resolving the issue of land capping for the 28 toll road projects that have been tendered out, as well as on the acknowledgement of the Government’s responsibility to acquire land before bidding for all new toll road projects (see Section III.F.4).
(vii) The provision on the setting and adjustment of tariff has been placed as part of project preparation. It is quite appropriate to do so, as tariff and its adjustment together with land acquisition, risk management and allocation, and government support constitute financial issues that lie at the heart of any PPP.8
(viii) A new provision on market sounding has been included as part of PPP project preparation. This activity is considered necessary before the execution of prequalification (PQ) and bidding.
(ix) With regard to the provision on procurement of the private sector partner, it was decided by the KKPPI on 1 November 2007 to simplify the procedure in the case
7 As a general rule, the government shall acquire land for the project, as it is more efficient than the private sector. In the interest of competitiveness (for foreign direct investment), the government shall provide the project land at the point of tender. Land cost shall be treated as an item for subsequent negotiation, i.e., it could be a form of government support. According to international experience, this risk is borne by the government, i.e., land is already available, without any encumbrances, when the project is tendered out. This implies that land acquisition is not a risk to the private sector. Land cost is also a negotiation item. It could be provided free to the project or paid for by the project as an upfront cost or as part of the operating cost, i.e., a rental, both payable to the government. How land cost is treated clearly affects the project financial viability in different ways. Proof of land availability is usually a condition precedent to financial closure. 8 Tariff and its adjustment shall be determined to ensure a fair rate of return to the investor, subject to efficient operations of the infrastructure project. The fair rate of return shall be determined at the negotiation stage. Tariff and its adjustment shall be written into the PPP contract. 10
of less than three participating business entities passing the PQ and in the case of less than three bidders submitting their bid proposals.9
(x) The issue of transfer of ownership of the special purpose company (SPC) before the project is commercially operating was also discussed by the KKPPI. It was felt that the transfer of part or all shares of the SPC should not be prohibited but explicit provisions should be made in the concession agreement stating that transfer of shares (ownership) would only be allowed for certain specific purposes and would have to be approved by the respective Minister.
(xi) The definition of financial closure has been made clearer. As part of the provisions on project implementation, the financial closure is considered having been attained when the loan agreement for financing the project is effective and the SPC receives the right to disburse the funds.
(xii) Other important items on which guidance has been received from the KKPPI include the following:
(a) The provision on providing a bonus of an additional 10% to the total score received by the proponent of an unsolicited project should be kept;
(b) A provision on business licensing should be included;
(c) The provision on the transition period should only regulate those projects that have been prepared under Perpres 67/2005; and
(d) Harmonization of the new Perpres with PP 6/2006 on the Management of State/Regional Assets, PP 8/2007 on Government Investment, and PP 50/2007 on the Implementation Procedure for Local Government Cooperation is essential.
20. As shown in Table 4, the new Perpres will be more comprehensive after these revisions than its predecessor (for details see Appendix 8).
Table 4: Structure of the New Perpres
Structure Perpres 67/2005 Draft New Perpres
Chapters 11 11 Parts - 29 Articles 31 78 Attachments 1 8
9 It has been agreed that (i) if less than three participating business entities pass the PQ, the process has to be repeated; (ii) if only two participating business entities pass the repeated PQ, public tendering can be proceeded with; and (iii) if only one participating business entity passes the repeated PQ, negotiation can be conducted, subject to approval by the respective Minister/Head of Regional Government. At the bidding stage, if only one bidder submits the bid proposal, either re-bidding can be carried out or negotiation can be conducted, subject to approval by the respective Minister/Head of Regional Government. 11
3. Plan for the Next Period
21. There are two remaining issues in finalizing the draft Perpres: (i) harmonization with PP 6/2006 on the Management of State/Regional Assets; and (ii) clarification on the business licensing procedure for PPP activities in the relevant sectors such as telecommunications. The first issue is particularly critical since the scope of regulation of PP 6/2006 is overlapping yet inconsistent with the draft new Perpres. The overlap is related to the PPP coverage of PP 6/2006 that may implicitly include infrastructure. The inconsistency is related to the purpose and objective of PP 6/2006, to optimize the utility of state/regional assets and maximize state revenue. By contrast, the purpose of the draft Perpres is to provide sustainable high-quality infrastructure services to the public, and the objective is to promote private sector participation in a more efficient provision of infrastructure. Furthermore, there are also inconsistencies related to (i) the choice of PPP modality, with a narrow spectrum in PP 6/2006 versus a wide spectrum in the draft Perpres; and (ii) the length of concession period, with short to medium term in PP 6/2006) versus long term in the draft Perpres. The challenge is to select the most appropriate way of regulation in promoting private sector participation in infrastructure when government fiscal contribution is necessary: PP 6/2006, or PP 8/2007, or the draft Perpres. Of course, the latter is at a disadvantage due to its lower legal status than PP.
22. Two consultations are therefore still needed to finalize the draft Perpres: one with MOF on the harmonization with PP 6/2006, and the other with MCI on filling the gaps in developing norms and procedure for selecting the private sector partner through business licensing. These two consultations are scheduled for the third week of January 2008, followed by a workshop on the final draft Perpres in the fourth week of January and the presentation of the final version to the KKPPI in the first week of February. By mid-February 2008, the draft Perpres will be sent by the KKPPI to the Cabinet Secretariat for the final review, with the view to having it signed by the President by the end of that month.
C. OGM Formalization
23. As reported previously, the SID team was asked to consolidate, update and translate the June 2006 version of the OGM. The objective is to develop the OGM as practical technical guidelines utilized by the sector ministries, contracting agencies and local governments in preparing, procuring and transacting PPP projects in infrastructure in compliance with Perpres 67/2005. Moreover, the OGM will be an essential tool for the P3CU and PPP nodes when examining the completeness of documentation of PPP project proposals submitted by the sector ministries, contracting agencies and local governments, and reviewing their soundness/viability. Furthermore, sector regulators may use the OGM as a reference when they deal with matters related to dispute resolution on PPP projects. Finally, the OGM will provide useful information to investors and lenders on the rules of the game in engaging the private sector in the provision of infrastructure in Indonesia.
24. As suggested by the participants of the Batam workshop in July 2007, the OGM needs to be simplified and made more practical as the current format is considered too academic. In addition, it must become an integral part of the new Perpres in the form of attachments. As shown in Table 4, there will be the following eight attachments that essentially cover the full project life cycle:
(i) Planning, Selection and Prioritization of PPP Projects, (ii) Public Consultations, (iii) Feasibility Study, 12
(iv) Risk Analysis, (v) Choice of PPP Modality, (vi) Government/Regional Government Support, (vii) Procurement of Private Sector Partner, and (viii) Post-transaction Project Monitoring.
25. The final draft is scheduled for discussion in a workshop in the second week of February 2008, with the view to printing the OGM by the end of that month.
D. Coordination with the World Bank
26. As reported previously, the World Bank decided to join ADB and the Government of Japan in supporting the infrastructure reforms through policy-based lending. During processing of the Infrastructure Development Policy Loan (IDPL), which is anchored on the IRSDP, and partly reinforces and partly complements it, the SID team contributed to the design of the policy matrix and provided comments on the draft Project Concept Document. The first $200 million tranche of the IDPL was approved by the World Bank's Board on 4 December 2007.
E. Framework for Public Service Obligations
1. Main Findings 27. The objective of Task 2 of the SID TA was to prepare a PSO framework consisting of a cross-sector policy and a roadmap for implementation. Task 2 included the determination of which infrastructure services should qualify as part of this framework and an analysis of the current approaches to subsidizing these services. Based on this analysis, a new approach to PSO was developed, including recommendations for new institutional arrangements for the implementation and management of the PSO framework.
28. PSO activities are currently being delivered under two broad categories: (i) those assigned to SOEs and regulated under the SOE law, and (ii) those known as ‘pioneering services’ in the transport sector that include both assignments to SOEs and private participation in service delivery through tendered contracts. The increase in activities that are subsidized by the Government and the increase in the amount of subsidies being provided in a number of infrastructure sectors have underlined the need to clarify the PSO definition and standardize approaches to PSO implementation.
29. The SID team has found that the PSO framework could be strengthened through the application of a cross-sector approach, modeled on the cross-sector approach to PPPs as embodied in Perpres 67/2005. This would allow the standardization of PSO proposals submitted for budget approval, increased transparency in the provision of information, and implementation of robust procedures for monitoring and evaluation. The SID team has also found that the PSO arrangements involving SOEs can benefit from the experience gained from the transport pioneering services arrangements, particularly in relation to the preparation and implementation of the PSO program and the use of competitive bidding. Conversely, the pioneering services, which deserve to be classified as PSO, can benefit from the current development of a monitoring and evaluation framework for the PSO program undertaken by SOEs.
30. On 30 November 2007, the findings of the SID team were presented to the concerned stakeholders in a confirmation meeting in BAPPENAS. On 11 December 2007, recommendations for the PSO framework were presented in a workshop at the Millenium Hotel, Jakarta that was attended by 42 participants from the sectors, BAPPENAS and the SID team. The principal recommendations discussed at the workshop are given below. The 13 draft final report on Task 2 was submitted to BAPPENAS on 27 December 2007, and the final report will be distributed to all parties concerned in January 2008.
2. Recommendations
31. To bring together the characteristics associated with PSO and facilitate future classification, the following definition is proposed:
“A PSO arises when the Government explicitly requires activities related to outputs and inputs that a service provider would not choose to do on a commercial basis and that are not required of other businesses in the public or private sector. A PSO relates to the government-directed provision of infrastructure services to disadvantaged groups such as the poor or geographically isolated. The Government acts as a purchaser of such services from public or private service providers. The purchase requires explicit and approved funding, and is to be implemented through performance- or output- based contracts that are competitively tendered where possible.”
32. The preparation of PSO proposals should consist of the following steps:
(i) Identification of the principles and rationale for subsidization, (ii) Determination of target beneficiaries, (iii) Determination of PSO objectives and outcomes, (iv) Development of mechanisms to improve market efficiency, (v) Linking of payments to performance, (vi) Development of a monitoring and evaluation system, and (vii) Definition of contractual arrangement principles.
33. For costing PSO, it is recommended that (i) fully absorbed costs be used where the PSO is a substantial part of the total service; and (ii) avoidable costs be used where the PSO relates to the production or delivery of a service that can be concessioned, discontinued or ‘avoided’. A guiding principle should be that PSO costs are accounted for separately from general financial reports where possible and that activity-based costing used in network industries is tied to specific performance outputs. The proposal for PSO or subsidized activities should cost the activities on either the fully distributed or avoidable basis with sufficient rationale for the selection of the method. In some cases, both methods may be required to support the evaluation. The onus for the justification of the costing method should lie with the agency proposing the PSO or subsidized activity. A formula should be implemented for allocating margins for overheads and depreciation expenses. It may not be possible to implement a universal formula across all sectors and industries due to the different nature of their activities.
34. The recommended option for funding PSO, which is supported by the existing legislative and regulatory arrangements, is direct budget funding. Such funding of the PSO or subsidy involves payment from general government revenues to the service provider to compensate it for the cost of the service. The government funding agency and the service provider should specify the types and prices of products or services to be provided and the amount to be paid during the given period in a PSO contract.
35. The contracts for all PSO and subsidy activities should be performance or output- based. Where possible, such contracts should be tendered on a competitive basis. Where this is not possible and the contract is directly negotiated with an SOE, it should include specific provisions for payments directly linked to performance indicators. The contract 14 should describe (i) the PSO to be provided, (ii) the monitoring mechanism, (iii) the compensation mechanism, and (iv) the tariff adjustment formula.
36. The preparation and contracting of PSO proposals should continue to be the responsibility of the sector ministries. To ensure that a standardized framework is followed for this process and that the available fiscal space is not exceeded, there is a need for cross- sector screening and prioritization of PSO proposals. Given its mandate that covers both PPP and PSO, the KKPPI is the suitable agency for this task. The KKPPI’s experience in the contracting of infrastructure projects will also be beneficial to the implementation of competitive bidding of performance- or output-based PSO contracts. The KKPPI Secretariat can provide guidance and support to the sector ministries for the proposal preparation, contract drafting and bidding.
37. The screening and prioritization by the KKPPI is an additional step in the current PSO submission and approval process. As such, it mirrors the cross-sector approach to PPP projects prescribed under Perpres 67/2005. Standardized submissions will accelerate the review and analysis of PPP proposals by the concerned agencies. Screening by the KKPPI will allow for the testing of the assumptions behind the principles and rationale of the PSO proposed by the sector ministries from a cross-sector point of view. A claim for funding for PSO or subsidized activities should not be submitted to the Parliamentary Budget Committee without the KKPPI’s endorsement.
38. A new Perpres, modeled on Perpres 67/2005, should be drafted to cover the implementation of the cross-sector PSO framework, and a formal PSO Unit should be established within the KKPPI Secretariat. 10 The PSO Unit would have the following responsibilities:
(i) Development of an OGM for the preparation and approval of PSO proposals (in close coordination with sector ministries);
(ii) Development of a process for implementing a social cost-benefit analysis as a core component of the PSO preparation process.
(iii) The commencement of an audit process for activities subsidized by the sector ministries to establish such activities as PSO or non-PSO. The initial focus for the audit should be on transport pioneering services and those activities subsidized by the transport directorates involving non-tax state revenue such as small ports and airports.
(iv) Coordination and liaison with MOF to develop a monitoring and evaluation process, including the demarcation of the role of the PSO Unit and MOF within this process, and the consistent application of monitoring and evaluation procedures to all PSO activities.
(v) Support to the sector ministries for the preparation of PSO proposals, and drafting and bidding of PSO contracts.
39. It would also be advisable to establish a PSO monitoring and evaluation team in MOF. This team would have the responsibility for:
10 As provided for in Article 14 of CMEA Regulation 1/2006 on the KKPPI’s organization and working procedures. According to Article 15, the PSO Unit should (i) develop PSO policies and strategies as well as subsidy schemes, (ii) carry out cross-sector coordination to facilitate implementation of PSO and subsidized projects, and (iii) conduct monitoring of the implementation of PSO policies and strategies. 15
(i) Managing guidelines on costing and funding PSO and subsidy activities,
(ii) Ensuring performance standards in contracts are met and payments made,
(iii) Evaluating and reviewing the process of establishing performance standards, and
(iv) Reviewing PSO and subsidy programs, including cost-benefit analyses of such programs.
40. A capacity building program should be developed and implemented for staff in the PSO Unit, MOF, MSOE, BAPPENAS and the sector ministries. The program should cover (i) social cost-benefit analysis; (ii) tariff setting; (iii) sector issues and market liberalization; (iv) financial and business analysis; (v) activity-based costing; (vi) performance measurement; and (vii) contract tendering, monitoring and evaluation.
F. Road Sector
1. Model Toll Road Projects 41. Of the ten model PPP projects, two are toll roads. The Solo-Kertosono toll road is a greenfield project running eastward from Solo toward Surabaya. As the forecasts of traffic levels for initial years are low, the Government through MOF has agreed to provide some Rp3 trillion, or 33% of the needed capital, for land acquisition and capital works in an attempt to make the project financially viable. The SID team carried out a detailed assessment of the project in May 2007. The Assessment Report that was submitted to the KKPPI Secretariat in BAPPENAS concluded that while the project preparation was adequate, some onerous provisions in the tender documents were likely to limit competition and make financial closure difficult if not impossible. This prediction was confirmed in June 2007 when only one bid was received by BPJT. Based on Perpres 67/2005, if there are less than three valid bids, rebidding of the project is required. However, under the PP 15/2005 on Toll Roads, the Minister of Public Works can decide in cases where only one bid is received whether to proceed with negotiation or rebid the project. It seems that the first option was initially chosen, but no progress in negotiation with the sole bidder has been reported. 42. The second model project – the Medan-Kualanamu toll road – would extend an existing tolled expressway, which runs from the port of Belawan through Medan to Tanjung Morawa, to Kualanamu where the second Medan airport is planned and to Tebing Tinggi. Timing of the extension will depend on the progress of planning for the new airport that this road would serve. The Medan-Kualanamu toll road is among the 11 projects proposed by BPJT as Batch IV for PQ and bidding (see below).
2. Batch IV of Toll Road Projects 43. As part of the 1,951 km toll road development program, BPJT intends to put up Batch IV of 11 projects located in Java, Sumatra, Riau, Bali and Sulawesi for PQ and bidding. As shown in Table 5, the combined length and investment cost of these projects is 422 km and Rp24.9 trillion, respectively. Their financial internal rate of return (FIRR) ranges from 0% to 13%. Although the data used to generate these figures is limited and mostly outdated,11 it is obvious that the projects are not financially viable and that they will require significant government support to attract private investors and lenders.
11 As of 31 December 2007, updating had been done for the Pasir Koja-Soreang, Pekanbaru-Kandis-Dumai, Serangan-Tanjung Beno and Manado-Airmadidi projects. The updating for the other projects is expected to be completed in January 2008. 16
Table 5: Batch IV of Toll Road Projects
Unit No. Project Length Investment Investment Starting Day FIRR (km) Cost Cost Traffic and and Subsidy NPV (Rp billion) ($ million/km) Year (Rp billion) a) 1 Pasir Koja - Soreang 15.0 1,178 8.4 23,000 (2010) 13.0% 379 2 Cileunyi – Sumedang - 58.5 4,304 7.9 26,241 (2010) 6.0% Dawuan 2,478 3 Medan – Kualanamu – 22.0 1,300 6.4 25,000 (2010) 7.5% Lubuk Pakam Barat 726 4 Medan - Binjai 15.8 964 6.6 38,947 (2010) 12.3% 321 5 Pekanbaru – Kandis - 135.0 6,000 4.8 22,000 (2010) 11.3% Dumai 2,000 6 Serangan – Tanjung 7.5 1,230 17.6 13,257 (2011) 3.8% Beno 829 7 Manado - Airmadidi 28.3 1,950 7.4 5,600 (2010) 0% 1,930 8 Tegineneng - Babatan 50.0 2,800 6.0 18,408 (2010) 5.6% 1,634 9 Sukabumi - Ciranjang 31.0 1,483 5.1 12,000 (2010) 2.6% 978 10 Palembang - Indralaya 22.0 800 3.9 10,404 (2010) 4.1% 500 11 Pandaan - Malang 37.0 2,852 8.3 20,000 (2010) 3.1% 1,836 Total 422.1 24,861 a) Net present value of the annual subsidy needed to achieve a FIRR of 18% at a discount rate of 15%.
44. A number of toll road projects tendered as part of Batches I to III are having difficulty to achieve a ‘true’ financial closure, while others did not attract any private interest at all. There were a number of reasons why these projects have fallen short of expectations. The most important deficiency was a lack of adequate project preparation – land was not acquired, or commitment for land acquisition was not given, before bidding; approval in principle from MOF for potential direct or contingent government support was not available; financial analysis and economic assessment were not well done; and disregard of international best practice in concession agreements or the tender documents left bidders confused. Given this record of poor response to the earlier Batches, BAPPENAS and the SID team recommended that a review and updating of the feasibility studies, followed by well-organized market sounding, be carried out for the Batch IV projects prior to PQ and bidding.
45. A series of meetings was held with MPW and BPJT to agree on this approach. The Minister of Public Works and the BAPPENAS Deputy for Infrastructure and Facility met several governors to discuss the contribution of local governments to the financially non- viable projects. As a result of these meetings, MPW and BPJT decided to defer the start of PQ for Batch IV from early January 2008 and requested BAPPENAS for support by the SID team12 for the following project preparatory work:
(i) Updating of traffic counts and investment cost estimates by MPW (November- December 2007),
(ii) Preliminary market sounding aimed at institutional investors such as pension funds (17 December 2007),
12 Two additional domestic consultants have been recruited under TA 4872-INO: Enhancing Private Sector Participation in Infrastructure Provision to organize the market sounding event. 17
(iii) Updating of the financial and economic analyses, and determination of the type and amount of government support (January 2008),
(iv) Coordination meeting on the sharing of the support by the local and central governments (January 2008),
(v) Drafting of an Information Memorandum ( January-February 2008), and
(vi) Market sounding event (February 2008).
3. Toll Road Projects in Jakarta 46. The provincial government of DKI Jakarta developed a plan for six radial and circumferential toll roads with a combined length of 73 km and a total investment cost of Rp23.2 trillion.13 In a letter dated 31 October 2007 to the KKPPI Chairman, the Minister of Public Works proposed the following three procurement alternatives:
(i) Direct appointment of a ROE – the Jakarta Toll Road Development (JTD) – by the provincial government of DKI Jakarta;
(ii) Competitive bidding, with JTD becoming the majority shareholder (67%) in the winning consortium as a compensation for the project concept, land acquisition and cash contribution; and
(iii) Competitive bidding, with JTD as the proponent of the unsolicited projects receiving an increased bonus of up to 20% in the bid evaluation.
47. DG Highways in MPW reviewed the proposed projects and recommended the second procurement alternative. During the KKPPI Echelon I meeting on 18 December 2007, DG Highways and the provincial government presented information on project justification and requested the KKPPI that a special Perpres be issued, as the procurement arrangements would not be in line with Perpres 67/2005. Discussion at the meeting highlighted important issues related to the spatial plan, transport and road networks, economic and financial viability, and JTD's role as the majority shareholder. A list of questions was prepared by the KKPPI Secretariat with the assistance of the SID team and sent on 19 December 2007 to DG Highways and the provincial government. Their response is awaited.
4. Land Acquisition for Toll Roads
48. Land acquisition continues to be one of the biggest stumbling blocks for accelerating toll road development. To remove this obstacle and in response to the letter of 8 October 2007 on land capping by the Minister of Public Works , KKPPI Secretary II took the initiative and organized a series of Echelon I meetings with CMEA, MOF, MPW, BPJT, BPN, Senior Advisor to the Vice President, and toll road companies. The meetings focused on those toll road projects, for which the concession agreements had already been signed, or bidding carried out, without any further progress.
49. Assisted by the SID team and taking into account the feedback from the above- mentioned meetings, the KKPPI Secretariat prepared in early December 2007 the Report on the Acceleration of Land Acquisition Process for Toll Road Development that analyzed the following main issues:
13 The high unit investment cost of about $34 million per km is attributable to the elevated design of the projects due to land acquisition constraints. 18
(i) Cost of land acquisition for toll road projects. The total amount required for land acquisition for toll road development during the period 2008-2010 is estimated at Rp23.4 trillion. This is Rp6.8 trillion, or 41%, higher than the amount of Rp16.6 trillion stipulated under the concession agreements or indicated in the business plans and feasibility studies. The cost increase can be split up into Rp6.1 trillion for 28 projects with good financial viability and Rp0.7 trillion for 11 projects with marginal financial viability. For the former, the additional land cost is proposed to be shared between the respective toll road companies and the Government based on the land capping and maximum land cost principles. As an illustration of the land capping approach, if the Government decides that the toll road companies should bear an additional 10% on top of the amounts stipulated in their concession agreements, the Government will have to finance the balance of Rp4.9 trillion. For the financially marginal projects, the Government would have to cover the entire land acquisition cost to make them attractive. In total, the Government would thus need to provide a land acquisition budget of Rp9.3 trillion during 2008-2010. The Report also outlined two options in terms of the FIRR for determining the maximum level of government support that could be justified, and provided an indicative schedule for budget disbursement.
(ii) Legal review of government support for land acquisition for toll road projects. The existing relevant regulations such as Law 38/2004, PP 15/2005, Perpres 67/2005, and MOF Regulation 38/2006 do not explicitly deal with government support for land acquisition or the land capping mechanism. To provide an adequate legal basis, a new Perpres has therefore been proposed that would regulate inter alia (i) the amount of land capping borne by the toll road company, (ii) the authority of MPW to determine the maximum amount of additional cost for land acquisition to be borne by the Government, and (iii) the implementation of this government support through the National State Budget (APBN) mechanism.
(iii) Review of the land acquisition mechanism. Some problems have been identified in the implementation of the land acquisition process. Recommendations on how to refine the land acquisition procedure as stipulated under Perpres 36/05 and Perpres 65/06 have therefore been made in the Report.
50. Based on the above report submitted by the KKPPI Secretariat, the KKPPI Meeting on 3 January and the meeting chaired by the Vice President on 4 January 2008 made the following decisions:
(i) The Government will support the 28 financially viable toll road projects, subject to the toll road companies bearing the additional cost of land acquisition up to the higher of two options: (a) 10% of the land acquisition cost stipulated in the concession agreement, or (b) 2% of the total investment cost stipulated in the concession agreement.
(ii) The maximum amount of the government support for land acquisition for each project will be determined by MPW based on a 12% FIRR threshold (i.e., the government contribution to the land acquisition cost is not allowed to result in a FIRR higher than this threshold).
(iii) The total amount of the government support agreed by MOF is Rp4.9 trillion. This government support will be allocated under the 2008 APBN amendment, 2009 APBN, and 2010 APBN.
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(iv) Provision of the government support will be subject to the application of the claw- back principle based on international best practice.
(v) For any new toll road projects, the land acquisition process will have to be completed before bidding.
(vi) As follow-up actions for proceeding with the provision of the government support, (a) CMEA will send a letter to MOF describing the decisions of the meeting chaired by the Vice President, (b) MOF will send a letter to MPW agreeing to provide the government support; and (c) MPW will task the BPJT Chairman with amending the concession agreements of the 28 toll road projects.
(vii) BPN will draft a new Law on Land Acquisition as the long-term solution of land acquisition mechanism problems.
5. Advisory Services for BPJT
51. BPJT requested BAPPENAS for PDF funding of advisory services to ensure compliance of all agreements between BPJT and private concessionaires with the prevailing laws and regulations, and achievement of the toll road development program. The scope of the services should also include assessing key problems related to each toll road project (especially those forming the Trans-Java Expressway), recommending remedial actions, and helping settle disputes. The SID team prepared the detailed TOR and cost estimate for these services during a 12-month period.
52. A provision made for this purpose in the original allocation of PDF loan proceeds was removed during the IRSDP Inception and Review Mission in May-June 2007, as BPJT did not reconfirm the need for such services at that time. However, the provision can be reinstated using proceeds in the unallocated category.
G. Transport Sectors
1. General 53. The SID team continued to monitor the progress of the two model transport projects and to give advice to BAPPENAS and MOT. The team also assisted MOT's four DGs in preparing a pipeline of potential PPP projects. A particularly positive response was received from DG Railways, the only transport sector where the revised law had already been passed by Parliament. The other three draft laws, which also provide more opportunity for PPP, are still awaiting passage. However, without setting up the necessary institutional framework and adequately preparing suitable PPP projects, new laws alone would not be sufficient to attract the private sector.
54. The SID team also continued working closely with MOT’s Center for Strategic Studies to disseminate information on the PPP concept and process to all stakeholders within transport sectors including the four DGs, SOEs, and provincial and local governments. MOT received a recommendation by CMEA and no objection from the Minister of Civil Servant Empowerment (Meneg PAN) for the Center to exercise the PPP node function. This gives a legitimate authority for the Center to coordinate PPP projects within MOT, but its staff capability needs to be strengthened. The SID team supported the Center with advice and information; this support will be continued by the World Bank’s Private Provision of Infrastructure Technical Assistance (PPITA) from the second quarter of 2008 onwards. 20
2. Model Transport Projects 55. The Margagiri-Ketapang ferry project will be a greenfield development linking the western end of Java with Sumatra and expanding the capacity for vehicles and freight of the current ferry crossing, which will be reached around 2011. The SID team drafted the TOR for project preparation under the PDF in March 2007, but the subsequent discussions were protracted for a number of reasons, including limited support at lower levels in MOT and delayed decisions. As reported previously, it was agreed after a series of meetings that BAPPENAS would administer the project under the PDF, but that from a technical perspective, the consultants would have to work closely with the DG of Land Transportation. The recruitment of consultants was advertised on 1 September 2007, and the process is on track. A procurement committee composed of four members from BAPPENAS and three from MOT prepared a short-list of 6 consulting firms out of the 17 that expressed interest. The Project Management Unit (PMU) for the PDF sent the short-list, together with the draft request for proposals, to ADB on 7 December 2007 and is waiting for ADB's no objection letter, with the view to issuing the request to the short-listed firms in January 2008. The consultants are expected to start working on the pre-feasibility study in the second quarter of 2008. The SID team has been helping the PMU coordinate with MOT and provide technical information to the procurement committee.
56. The Teluk Lamong port project aims to increase container capacity in Surabaya by developing a new container terminal in Lamong Bay, separate from the existing terminal operated by Dubai World Ports and Pelindo III in the Tanjung Perak port. The project was initially delayed by the need to decide on how it should be handled, as it had been passed from MOT to Pelindo III as the executing agency. After the KKPPI decided in March 2007 that the project should follow the Pepres 67/2005 principles but that it would receive no government support, the SID team identified gaps in the previous project preparation and prepared the TOR to fill these gaps. During the reporting period, the SID team continued to monitor the project preparation, provide advice to BAPPENAS, and give guidance to the Pelindo III-financed consultants on the scope of work required for such PPP projects. Also, a briefing was given to the Minister of State-Owned Enterprises on the status of the project. The draft feasibility report presented in October 2007 recommended that commissioning of the new terminal be deferred from 2009 to 2012. This coincided with the suggestion to Pelindo III by the Vice President during his visit to Tanjung Perak to increase capacity of the existing terminal by improving operational efficiency. As this removes the time pressure, the project can be prepared fully in accordance with Perpres 67/2005.
57. Given the likely deferment of the Teluk Lamong port project, the SID team discussed with BAPPENAS and MOT the possibility of re-including in the model project list the Balikpapan port (a new container terminal at Karianggu in the vicinity of the existing port). The feasibility study completed in 2005 recommended that the port infrastructure be constructed by the public sector and that a private sector concessionaire be competitively selected to install and operate port equipment in a joint venture with Pelindo IV. An ADB loan for the public sector part was ready for negotiations in late 2005, but further processing had to be put on hold because of the need for approval by Parliament of the future transfer of port assets to Pelindo IV. That approval was obtained in mid-2007. The project is given a high priority by MOT and the provincial and local governments, as the existing port is literally overflowing, with containers stacked on the road outside. The project is well prepared, the necessary land has already been acquired, and the access road is under construction. After a brief updating of the feasibility study, the project would be ready for bidding and construction. In view of these favorable features, BAPPENAS arranged a coordination meeting on 3 January 2008 to discuss the possibility of resuming processing of the ADB loan.
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58. At that meeting, Pelindo IV distributed a letter addressed to MOT, proposing to follow the B2B approach for the Balikpapan port project instead of Perpres 67/2005, and to use government financing instead of the ADB loan. The proposal has several flaws:
(i) Pelindo IV is asking for contributions from the APBN and APBD of the central and provincial governments. However, when the B2B approach is used by SOEs, they are ineligible for any direct or contingent government support. A precedent was established in March 2007 when the KKPPI allowed Pelindo III to use the B2B approach for the Teluk Lamong port project on two conditions – no government support and execution in line with Perpres 67/2005.
(ii) The proposal lacks specifics regarding the role and financial contribution of the private sector partner. According to Pelindo IV, its selection would be governed by Keppres 80/ 2003. However, Keppres 80/2003 covers procurement of goods and services. For PPP projects, Perpres 67/2005 applies that requires transparent competitive bidding with at least three valid bids.14
(iii) If government support is needed for Balikpapan, MOT's DG of Sea Transportation should be in charge rather than Pelindo IV. The role of the latter should be limited to that of the landlord. Unlike the current Law on Sea Transportation, the proposed new law does not require port operators from the private sector to form a joint venture with one of the Pelindos. Passage of the new law by Parliament has been delayed, but hopefully it will happen soon.
3. Other Transport Projects 59. As reported previously, based on a meeting with the MOT Secretary General, the SID team and the Center for Strategic Studies agreed on a systematic approach for project selection and prioritization. All MOT DGs were requested by the Center to follow the SID team’s recommendations on project selection criteria. A system of monthly meetings was introduced to monitor progress and provide assistance to the DGs.
60. The DG of Railways was the first to develop a list of potential PPP projects. The proposed South Sumatra coal railway looks quite promising. The railway, which would partly use an existing alignment and partly be a greenfield development, would link the Bukit Asam coal mine in South Sumatra to the Pulau Baai port in Bengkulu and would have a capacity of 15 million tons per year. Non-quantifiable benefits include an impetus to regional development in Bengkulu, the least developed and most isolated province in Sumatra. MOT already completed a technical pre-feasibility study, including basic design, cost estimate and social-cost benefit analysis, and received a letter from MSOE supporting the project development on a PPP basis. The SID team was asked to identify gaps in the project preparation. A review of the existing documents is ongoing.
61. Other identified projects may be less promising for PPP, one of them being the provision of rail service to the Jakarta airport. It is unclear how much PPP would be involved as the mandate to prepare the project was given to two SOEs (PT Railink, a subsidiary of PT KAI, and PT Angkasa Pura II). The SID team also assisted the DG Railways in developing screening criteria for private railways serving special purpose, as there was some confusion
14 According to the latest information, Pelindo IV intends to use only public sector funding and not involve the private sector at all. The reasons given are the need to speed up the construction and operation of the urgently required container terminal and the fact that the new sector law has not yet been passed by Parliament. As Pelindo IV’s concept is inconsistent with the national policy to promote PPP, an intervention by the KKPPI should be considered.
22 about government-initiated projects versus unsolicited private sector proposals in light of the new Railway Law.
62. The provincial government of West Java that has a population of more than 30 million proposed a greenfield airport PPP project in Majalengka. The existing airport in Bandung, the provincial capital, has site limitations and is planned to be used mainly for air force and airplane industry once the proposed new airport is opened. The project has a priority at the regional level, but not at the national level, unless the capacity of the Soekarno Hatta international airport in Jakarta cannot be expanded because of land acquisition constraints. The SID team identified gaps in the project preparation and recommended that the provincial government strengthen its regulatory and institutional PPP framework. BAPPENAS asked for a commitment to follow Perpres 67/2005 and cancel a previously signed Memorandum of Understanding (MOU). A review of this matter by the West Java legal team is underway.
63. The municipal government of Bandung proposed to develop, on a PPP basis, an integrated inter-urban bus terminal and commuter passenger train station adjacent to the existing Gedebage railway dry port. The SID team reviewed the work done so far and drafted in October 2007 the TOR for project preparation and transaction execution. A coordination meeting at BAPPEDA in November 2007 recommended that a request for PDF funding be sent by the municipal government to BAPPENAS. The formal request is awaited.
64. The SID team assisted BAPPENAS in initial discussions on a number of other project proposals from local governments. These included the Bandung urban railways, Bandung monorail, Riau Trans-Sumatra railway, Tangerang fishing port, and Klungkung ferry in Bali. In all these cases, the SID team proceeded with the necessary follow-up actions to screen the projects and – when the outcome of the screening was positive – determine their suitability for the PDF, prepare the TOR for project preparation and transaction execution, and confirm the commitment of the concerned provincial and local governments to implement the projects on a PPP basis in line with Perpres 67/2005.
H. Water Supply Sector
1. Support to the Model PPP Projects
65. The main activities of the SID team during the reporting period included model project preparation, support for the bidding process for the Tangerang water supply project, finalization of the government support package for regional piped water supply projects, and continuation of the socialization of the PDF to local governments. Of the three water supply projects on the model project list, Dumai continued to be on hold, the technical pre-feasibility study was completed for the Bandung District (Kabupaten), and tendering was completed for Kabupaten Tangerang, though with a disappointing outcome.
66. Following the creation of the new Kabupaten Bandung Barat, a decision was made to shift the focus back to East Bandung that had been the initial target area (with possible cooperation with the neighboring region, Kabupaten Sumedang). The SID team finalized the technical part of the pre-feasibility study and continued with the financial part. The scope of the latter was expanded by adding a demand survey, including willingness to connect and willingness to pay. The project scope for East Bandung is much smaller compared to West Bandung and suffers from a typical problem common in West Java, namely, a limited availability of raw water. In an effort to address this issue, the SID team proposed to BAPPENAS that the provincial government of West Java take the lead in encouraging regional cooperation among Kabupatens for water supply development.
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67. With regard to the Tangerang model project, the SID team facilitated a capacity building program to equip the tender committee with appropriate bid evaluation skills. A workshop on this subject was conducted on 29-30 October 2007. During the workshop, major weaknesses of the project such as the lack of any government support and a potential conflict of interest due to the presence of a bidder that would also be the bulk water supplier were recognized as the main stumbling blocks. However, the SID Team was only able to recommend a possible negotiation strategy since the tender documents had already been finalized and issued to the four prequalified companies. As predicted, the competition was weak and only two bids were received.15 No decision has been made so far by the local government on whether to proceed with evaluation of the two bids or rebid the project. In line with Perpres 67/2005 requirements, the SID teams recommends the latter solution, but only after the tender documents have been improved, and government support agreed upon and specified in the documents.
68. Given the importance of proper risk sharing and government support for attracting private investors, the SID team assisted MOF’s Risk Management Unit (RMU) in the preparation of materials for the APEC Risk Management Workshop that took place on 26-27 November 2007 in Jakarta. The RMU chaired the workshop that focused on PPP in water supply. The government support package designed by the SID team as a tool applicable to all regional water utilities was discussed. Feedback from the RMU on this matter is awaited so that the package can be finalized.
2. Support to Other Local Government Projects 69. As part of its work, the SID team continued its involvement in the development of a project pipeline for the PDF. The assistance included socialization of PPP (and Perpres 67/2005), review of suitability criteria, formulation of the TOR for project preparation and transaction execution, and procedures for PDF implementation. Of the seven proposals received during the previous period, two water supply projects were found suitable for PDF support, namely, Bandung Municipality (Kota) with a 1,100 lit/sec water treatment facility to be located at Cimenteng, and Kabupaten Klungkung in Bali with a 2,000 lit/sec water treatment facility to be located at Tukad Unda. The SID team started the preparation of capacity building for Kota Bandung, while Kabupaten Klungkung advanced its project with the establishment of the Local PPP Team (Tim KPS) and execution of an initial capacity building program by the SID team on 2-3 November 2007. Five projects did not meet the PDF screening criteria because of their non-commercial nature, and the local governments were advised to look for other financing sources.16
70. The SID team noted some aspects of the procurement mechanism under the PDF that need adjustment to speed up the project preparation process and maintain the high level of commitment from the concerned local governments. This includes the possibility of hiring individual consultants to undertake reconnaissance and other preliminary activities prior to the fielding of the consulting firm.
71. Finally, preparations were made to assist the Kota Bandung in a review of its waste- to-energy project, for which the local government is expected to sign the cooperation agreement in January 2008. The assistance will include a review of the cooperation agreement, financial projections and the commercial terms of the cooperation.
15 From Asia Consortium and Aquatico. 16 Those in Kabupaten Klaten, Kabupaten Sragen, Kota Denpasar, Kota Cirebon and Kabupaten Ogan Komering Ilir.
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3. Plan for the Next Period 72. During the period January-February 2008, the focus on the policy side will be on bringing to closure the effort to achieve an agreement on government support for regional water supply projects that would also pave the ground for other infrastructure projects under local governments. The expected outcome is that appropriate risk sharing arrangements (between central government, local government and private developers) along with the mechanics of how the guarantee would operate would be covered in either the revision of Perpres 67/2005 or in other ministerial regulation (MOF or MOHA).
73. On the project side, the SID team will (i) finalize the pre-feasibility study for the Kabupaten Bandung water supply project in the East Bandung area; (ii) assist Kota Bandung with the review of its waste-to-energy project; (iii) finalize TOR for the Kabupaten Klungkung water supply project; (iv) finalize the TOR, including a capacity building program, for the Kota Bandung water supply project; and (v) help BAPPENAS follow up requests for assistance from other local governments or central government agencies.
I. Power Sector
74. Since mid-July 2007, the State Electricity Corporation (PLN) has been negotiating with the International Finance Corporation (IFC) an advisory services agreement for the Central Java coal-fired power project. The two pending issues in the negotiation, namely the choice of law and the terms of payment, were finally resolved in early November 2007 by agreeing to keep silent about the choice of law and to link the success fee to the achievement of financial closure, defined as signing of the financing agreement. The negotiating teams finalized and initialized the advisory service agreement, and by the time this report was written, the document was being circulated for signing by IFC and PLN. IFC is to appoint consultants within 30 days after the signing, and PLN is to provide preliminary project information required by the consultants, upon which the agreement will be declared effective. According to an indicative time schedule, reopening of the bidding process is targeted for August 2008, and signing of the power purchase agreement for December 2008.
75. While the project is finally entering the preparation stage, a close coordination by the KKPPI of key players like PLN, MOF, MSOE, and MEMR is essential to ensure a timely and seamless transaction execution. Apart from project and administrative technicalities, two major potential issues need to be anticipated by the KKPPI and PLN as the contracting agency:
(i) Land acquisition at the project site. Unlike most of its independent power producer (IPP) projects, in which the sites were acquired by the winning bidders, PLN intends in this case to acquire the project site itself prior to the start of bidding. This approach, while welcomed by the potential bidders because it is shifting the land acquisition risk to PLN, might not be completed within the available time and thus delay the bidding process. PLN has a lot of experience in acquiring land for project sites, but the KKPPI can facilitate an expeditious approval process by MSOE, MEMR, and PLN’s Board of Commissioners.
(ii) Provision of government support: For PPP projects. This is governed by CMEA Regulation 4/2006 and MOF Regulation 38/2006. The problem is that the types of risks covered by the latter are not fully aligned with the risks associated with IPP projects (e.g., off-taker risk). Based on Law 19/2003 on SOEs, MOF refers to PLN’s PSO as the framework for providing government support to IPP projects (the latest example being Cirebon). But for a model project that will set the precedent for other IPP projects in the pipeline, the question is whether MOF Regulation 38/2006 should not be revised. The KKPPI will need to coordinate 25
with MOF, PLN and IFC as the project advisor to look into this matter and ensure that the request for government support for the Central Java project is processed and approved in principle in a timely manner prior to bidding.
76. Regarding the second model PPP project in the power sector – the Pasuruan combined cycle project – Wood Mackenzie was recruited to assess gas supply availability before the start of the full feasibility study. The assessment commenced in early August 2007 and was completed in early November 2007.17 It should be noted that its purpose was not intended to determine the definitive gas supply arrangements, but rather to identify potential gas suppliers, and what would need to happen for this gas supply to materialize (e.g., availability of gas infrastructure and commercially based gas pricing). During the assessment, PLN updated its power development plan and deferred the expected commercial operation date for the project to 2012.
77. The assessment determined that the Pasuruan power project would require a gas supply contract for 50.4 mmscfd (i.e., a total of 370 bcf during its 20-year service life). The following most promising gas supply options were identified:
(i) Cepu gas field. It has enough gas reserves (about 2 tcf) and a development plan that is compatible with the project. To make the gas supply contract commercially attractive to ExxonMobil, PLN could bundle it together with the existing Gresik and Tambak Lorok power plants. PLN would also need to work with PERTAMINA to secure gas transmission rights on the proposed Semarang-Gresik pipeline.
(ii) Kangean gas fields. The combination of TSB Block and West Kangean Block, both operated by JAPEX, also looks promising in term of reserves and spare capacity on the proposed gas pipeline from Pagerungan to Gresik. PLN would need to negotiate with JAPEX a commercialization plan for both fields.
(iii) Liquefied natural gas (LNG) receiving terminal in Gresik. The LNG could be sourced from Bontang in East Kalimantan (made possible through the phasing out of LNG export contracts and implementation of the domestic market obligation) or Tangguh in Papua (made possible through the development of a 4 mmtpa Train 3 in 2015). However, the assessment pointed out that the development of a LNG receiving terminal in West Java would open a bigger market for LNG suppliers and was therefore likely to get a higher priority than the East Java terminal.
(iv) Sampang and Madura Strait gas fields. The fields are well located and already have operating infrastructure. However, the assessment cautioned that the supply risk was still high due to Sampang’s early stage of development and uncertainty about the commercialization plan for Madura Strait. PLN would need to start talks with the gas producers to resolve this issue.
78. Overall, the assessment concluded that none of these options was yet ready to supply gas to the Pasuruan power project as they were based on technical rather than commercial reserve estimates and the necessary gas infrastructure was not yet in place. The assessment recommended that PLN hold regular talks with potential gas suppliers and BP MIGAS on the progress of field appraisal, commercial development plan, and infrastructure development plan. Given the various uncertainties, the question was raised by BAPPENAS whether the feasibility study should be postponed by 1-2 years. In a letter of 19 December 2007 to BAPPENAS, PLN indicated that its Directorate of Primary Energy was tasked to ascertain the gas availability with the potential suppliers recommended in the
17 The final report was distributed by BAPPENAS to the concerned government agencies on 8 November 2007. 26 assessment and that about 4 months would be needed to do so and sign MOUs with such suppliers that would be the basis for conducting the feasibility study.
79. The SID team believes that it is premature to seek MOUs already at this stage. The objective of the gas supply study was to assess the probability of having adequate quantities of natural gas for the Pasuruan power project, rather than pinpointing the exact location of gas fields and selecting the gas supplier. If the assessment had shown that the probability was very low, it would be imprudent to proceed with the feasibility study. However, that was not the case as the assessment identified four promising supply options with gas reserves and production profiles being a multiple of the project’s requirements. As the project preparation continues in the next 2 years, the uncertainties about gas supply will be gradually reduced. The feasibility study will further narrow down the potential gas suppliers, firm up their reserve and production estimates, and recommend the best gas procurement arrangements that will be specified in the tender documents. The bidders will also do their homework in this regard so that when the power purchase agreement is signed with the preferred bidder, the gas supply arrangements will have been decided. To achieve financial closure for the Pasuruan power project, the gas supply agreement will have to be signed, and the completion of the power plant construction will have to coincide with the completion of the necessary gas supply infrastructure. Keeping this broad perspective on mind, one should not expect all definitive answers to be provided already at the gas supply assessment stage.
J. Telecommunications Sector
80. The Palapa Ring project consists of the development of fiber optics networks on major islands in Indonesia, which will serve as a telecommunication backbone for both voice and data communications. In early 2007, the MCI decided to divide the project into two regions, western and eastern. The western region already has overlapping networks owned and operated by four different firms18 and characterized by rapidly increasing traffic demand. There is no network yet in the eastern region that has a geographically difficult environment dominated by small islands. To accelerate the Palapa Ring project and reduce its cost, MCI adopted in February 2007 a plan to (i) integrate and expand the existing networks into the Western Ring; and (ii) establish a single consortium to develop the Eastern Ring.
81. A study on the implementation options for the Western Ring was conducted by World Bank-funded consultants. Its findings were presented to MCI in September 2007. Based on a financial viability analysis, the study recommended to extend the existing network coverage to 42 out of the 49 kabupatens in Java, Bali, Sumatra and Kalimantan, and to establish a consortium for implementation. MCI is yet to decide on the project scope and implementation arrangements for the Western Ring, as the four incumbent network owners and operators are more interested in executing their own competitive business strategies for increasing traffic on their still underutilized networks.
82. There seems to be more willingness to cooperate in the eastern region. After negotiations conducted by MCI on commercial scheme, network capacity, and configuration plan, a project consortium for the Eastern Ring was established through the signing of a construction and management agreement in November 2007. The consortium members and their shares of bandwidth entitlement are as follows: (i) Telkom (50%), (ii) Indosat (12.5%), (iii) Excelcomindo Pratama (12.5%), (iv) Bakrie Telecom (12.5%),
18 Telkom, Indosat, Excelcomindo Pratama, and Indokomnet. 27
(v) Infokom Elektrindo (7.5%), and (vi) Powertek Utama Internusa (5%).
83. The tentative two-stage project implementation presented by the consortium envisages (i) finalization of tender documents in January 2008, (ii) selection of engineering- procurement-construction contractors in April 2008, (iii) approval of design review in July 2008, (iv) network roll-out for Stage 1 in April 2009, and (v) network roll-out for the whole Eastern Ring in November 2009.
K. Written Outputs
84. The following written outputs, provided in a separate volume of this Progress Report, were produced during September-December 2007 as part of the activities under Tasks 1, 2, 3 and 4:
1. TA Coordination
• Status of IBRD Loan No. 4696-IND activities in BAPPENAS (Bahasa) • Memorandum from Deputy VI BAPPENAS on PPITA supervision mission (Bahasa) • Presentation on Progress Report No. 6 • Minutes of meeting of 26 September 2007 on Progress Report No. 6 • Memorandum on major change in the scope of TA 4872-INO: Enhancing Private Sector Participation in Infrastructure Provision19
2. Support to the KKPPI Secretariat
a. General
• Presentation on the PPP policy framework • Minutes of the meeting of 26 October 2007 on public consultations for PPP projects (Bahasa) • Draft TOR for workshop on public consultations for PPP projects (Bahasa) • Note on status of model PPP projects for KKPPI meeting • Minutes of the KKPPI meeting of 1 November 2007 (Bahasa) • Final report on the review of infrastructure sector regulation • Presentation on infrastructure financing for IRSA international seminar • Presentation materials on infrastructure provision and inclusive development for IRSA international seminar • TOR for the procurement staff consultant for PDF, 12 November 2007 • Presentation for Eurocham PPP Seminar • Opening remarks of the State Minister of BAPPENAS for Eurocham PPP Seminar • Presentation materials for workshop on public consultation guidelines for PPP projects (Bahasa) • Note on PPP in infrastructure for Indonesia-Netherlands meeting • Presentation on Indonesian PPP system and policy direction • Presentation on government policy and support for PPP infrastructure projects (Bahasa) • Risk Sharing, Allocation, and Management Manual • Note on the status of the IRSDP
b. Perpres 67/2005 Revision and OGM Formalization
• Report on workshop on Perpres 67/2005 revision (Bahasa)
19 Prepared jointly with Alfredo Pascual, Advisor (Public-Private Partnership), ADB. 28
• Presentation for Echelon I meeting on Perpres 67/2005 revision (Bahasa) • Status report on Perpres 67/2005 revision as of 27 September 2007 (Bahasa) • Minutes of the Echelon I meeting of 27 September 2007 on Perpres 67/2005 revision (Bahasa) • Presentation on summary of Perpres 67/2005 revision (Bahasa) • Status report on Perpres 67/2005 revision as of 31 October 2007 (Bahasa) • Presentation on Perpres 67/2005 revision for the KKPPI meeting (Bahasa) • TOR for workshop on the harmonization of Perpres 67/2005 revision (Bahasa) • Presentation on Perpres 67/2005 revision and its harmonization with PP 6/2007 and PP 50/2007 (Bahasa) • Draft revised Perpres 67/2005 (Bahasa) • Presentation on Perpres 67/2005 revision and its harmonization with PP 8/2007 (Bahasa) • Status report on Perpres 67/2005 revision as of 19 December 2007 (Bahasa)
c. Capacity Building in Sector Ministries and Local Governments
• TOR for bid evaluation workshop for the Tangerang water supply project • Presentation on PPP project cycle and procurement for the bid evaluation workshop for the Tangerang water supply project (Bahasa) • Presentation on contract negotiations for the bid evaluation workshop for the Tangerang water supply project (Bahasa) • Presentation on legal and institutional bid evaluation for the bid evaluation workshop for the Tangerang water supply project (Bahasa) • Presentation of legal and contractual aspects of PPP transactions for Kabupaten Klungkung workshop (Bahasa) • Training modules for risk management for infrastructure PPP projects • Presentation for risk management workshop on PPP projects (Bahasa) • Presentation on PPP fundamentals and applications • Presentation on project finance and risk management in PPP projects • Presentation on private sector participation framework in Indonesia
d. Land Acquisition for Toll Road Projects
• Presentation and minutes of meeting with toll road investors on land acquisition process (Bahasa) • Presentation for Echelon 1 meeting on land acquisition for toll road projects (Bahasa) • Presentation for working group meeting on land acquisition for toll road projects (Bahasa) • Budget simulation on land acquisition for toll road projects Bahasa) • Presentation for Echelon 1 meeting on land acquisition for toll road projects (Bahasa) • Presentation for meeting with the Office of Vice President on land acquisition for toll road projects (Bahasa) • Draft presidential regulation on land capping for toll road projects (Bahasa) • Presentation on land acquisition for the Eurocham PPP seminar • Report on budget simulation and land acquisition process for toll road projects (Bahasa) • Presentation for KKPPI meeting on the acceleration of land acquisition for toll road projects (Bahasa) • Presentation for KKPPI meeting on budget simulation and land acquisition process for toll road projects (Bahasa) • Draft letters of MOF, CMEA, and MPW on the implementation of government support for land acquisition for toll road projects
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3. Public Service Obligations
• Presentation for the PSO confirmation meeting • Presentation for the PSO workshop • Progress report on Task 2: PSO Framework • Final report on the PSO Policy and Roadmap
4. Project Screening and Preparation
a. Power Projects
• Note on the interim meeting of 5 September 2007 on the Pasuruan gas supply study • Note on the final meeting of 27 September 2007 on the Pasuruan gas supply study • Note on the confirmation meeting of 4 October 2007 on the Pasuruan gas supply study • Final report on the Pasuruan gas supply study • Draft letter of the KKPPI Secretary II to PLN regarding the Pasuruan gas supply study (Bahasa)
b. Toll Road Projects
• Presentation on market sounding for the Batch IV toll road projects • TOR for market analyst for market sounding for the Batch IV toll road projects • TOR for communications specialist for market sounding for the Batch IV toll road projects • Memorandum to BAPPENAS Deputy VI on market sounding for the Batch IV toll road projects (Bahasa) • Note on the meeting of 15 October 2007 with BPJT and DG Highways on the Batch IV toll road projects • Presentation on West Java toll road projects (Bahasa) • Draft letter to ADB on the proposed technical advisory services for BPJT • Preliminary report on the Batch IV toll road projects • TOR for a study of the social and economic impact of toll road development • Draft letter to BPJT Chairman on the Batch IV toll road project tendering (Bahasa) • Memorandum on the proposed technical advisory services for BPJT • Draft letter to ADB on market sounding for the Batch IV toll road projects • TOR for the technical advisory services for BPJT • Presentation on legal aspect analysis for the Jakarta urban toll road projects (Bahasa) • Memorandum on the preparation of market sounding for the Batch IV toll road projects (Bahasa) • Memorandum on government support for the Batch IV toll road projects (Bahasa)
c. Transportation Projects
• Memorandum on status of the model PPP projects in the transportation sectors • Project brief on the Jakarta-Soekarno Hatta airport rail link • Presentation on infrastructure provision in the transportation sectors (Bahasa) • Note on PPP in railway projects (Bahasa) • Presentation on railway sector revitalization (Bahasa) • Presentation on PPP in the railway sector (Bahasa) • Note on the Teluk Lamong model PPP project (Bahasa) • Review matrix on readiness and PDF funding of West Java projects • Note on the Balikpapan port project • Note on the status of PPP project pipeline in the transportation sectors • Note on PPP in transportation projects (Bahasa) 30
d. Water Supply Projects
• Discussion materials on issues affecting risk in PPP water supply projects • Technical report on the Bandung water supply project • Presentation on PPP in Indonesia’s water sector • Presentation on water supply reforms in Indonesia (Bahasa)
e. Telecommunications Projects
• Update on the model PPP telecommunications project
f. Local Government Projects
• Minutes of the meeting of 3 September 2007 on the Bandung bus terminal project (Bahasa) • Presentation materials for meeting on the Kota Bandung bulk water supply project (Bahasa) • Review of request for PDF assistance for the Kota Bandung bulk water supply project (Bahasa) • Memorandum on apartment and housing PPP development in Bandung (Bahasa) • Discussion materials for meeting on West Java infrastructure projects (Bahasa) • Note on the PPP projects proposed by the Sleman local government • Review of the proposed Sleman water supply project • TOR for PDF assistance for the Gedebage integrated terminal project • TOR for project preparation training for local consulting firms • Press release for PPP training for Kabupaten Klungkung (Bahasa) • Report on PPP training for Kabupaten Klungkung • Note on the preparation of the West Java international airport project (Bahasa) • TOR for transaction advisory services for the Tukad Unda bulk water supply project • TOR for project preparation and stakeholder consultation services for the Tukad Unda bulk water supply project • TOR for pre-feasibility study and transaction advisory services for the Kota Bandung bulk water supply project • Memorandum on PPP project preparation for Kota Bandung (Bahasa) • Discussion materials for meeting on the Cimenteng water treatment project (Bahasa) • Note on the preparation of the West Java international airport project (Bahasa) • Presentation on the integration of transportation system in Jakarta and the neighboring regions (Bahasa) • Review of project readiness of the West Java international airport (Bahasa) • TOR for financial specialist for the Bandung waste-to-energy project • TOR for legal specialist for the Bandung waste-to-energy project • List of questions on the six urban toll road projects proposed by the Provincial Government of DKI Jakarta (Bahasa)
L. Attended Meetings
85. The SID team participated in a total of 106 meetings during the reporting period as part of the activities under Tasks 1, 2 and 4 (for details, see Appendix 9).
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IV. CONCLUSIONS AND RECOMMENDATIONS20
A. Infrastructure Reforms
86. The Government’s reform agenda was announced at the Indonesia Infrastructure Summit in January 2005 and reiterated at the IICE 2006. The agenda has covered nine infrastructure sectors21 and all important cross-sector and sector-specific reform areas such as the policy, legal and institutional framework for private sector participation; risk sharing and management; innovative funding mechanisms for PPP projects; land acquisition procedures; delineation of functional responsibilities of the national and local governments; cost recovery and tariffs; regulatory arrangements; and PSO framework. A large number of new policy papers, laws, regulations, and sector blueprints have been produced, and their implementation has started. Some important examples follow:
• Perpres 67/2005 on private sector participation in infrastructure provision • CMEA Regulations 1/2006, 3/2006 and 4/2006 on the organizational structure and responsibilities of the KKPPI Secretariat, readiness criteria for project prioritization, and procedures for evaluating projects requiring government support • Perpres 42/2005 on strengthening the KKPPI mandate • MOF Regulations 518/2005 and 38/2006 on the establishment of the Risk Management Committee and risk management policy • Policy paper on long-term infrastructure financing • Perpres 36/2005 and 65/2006 on land acquisition • Policy paper on PSO in infrastructure provision • Law 23/2007 on railways • Draft laws on road traffic and transportation, shipping, and aviation • PP 15/2005 on toll roads • Draft laws on energy and electricity • Perpres 5/2006 on national energy policy • PP 16/2005 on water supply
87. The reforms have also included painful cost recovery measures such as the unprecedented oil price increases in 2005, as well as the institutional measures such as the establishment of the RMU, BPJT, BPP SPAM, and PMU for the IRSDP.
88. The reform agenda has been supported by Indonesia’s three largest donors, namely, ADB, the Government of Japan, and the World Bank. In recognition of the significant progress made since early 2005, ADB’s first subprogram loan of $400 million under the IRSDP was disbursed in December 2006, and the Government of Japan provided cofinancing of $100 million in March 2007.22 The World Bank joined the support in December 2007 by approving its first $200 million IDPL. Overall, the reforms continue to be on track.
20 As this is the final Progress Report for the SID TA, Section IV provides a brief overview of achievements and drawbacks during 2006-2007. 21 Road, land, sea, air and railway transport; power; oil and gas; water supply and sanitation; and telecommunications. 22 The IRSDP policy matrix, which covers the period 2005-2010, comprises 70 actions with 223 specific outputs. Of these, 63 outputs were completed under Subprogram 1 and 104 are tentatively scheduled under Subprogram 2. 32
B. PPP Projects
89. While satisfactory progress has been made in establishing the comprehensive new framework for private sector participation in the provision of infrastructure, with Perpres 67/2005 as its cornerstone, the progress on the model and other PPP projects has been uneven and mostly below expectations. The current status of the model projects can be summarized as follows (for details see Appendix 10):
(i) Central Java Coal-Fired Power Plant: Discussions about the funding and procurement arrangements for the advisory services for project preparation and transaction execution, as well as the subsequent negotiation of the advisory services agreement with IFC, have taken almost 1 year. With the agreement finally ready for signing, it is important that the feasibility study start without any further delay and be followed by bidding in the second half of 2008. As this is the most prominent model project, its expeditious execution will provide a positive signal to potential infrastructure investors and lenders.
(ii) Pasuruan Combined Cycle Power Plant: The assessment of gas supply availability has been completed, with four promising options identified. PLN is providing a follow-up through discussions with the potential gas suppliers. However, it is premature to seek MOUs with such suppliers already at this preliminary stage of project preparation. Parallel to PLN’s discussions, the recruitment process should be initiated for the consultants for the feasibility study that will, among other things, further narrow down the gas supply options. The PDF is readily available for such study and, if its outcome is positive, the subsequent transaction advisory services.
(iii) Medan-Kualanamu Toll Road: The project is likely to require a major government support to make it attractive for private investors. To determine this support, gauge investor sentiments and maximize competition, the ongoing updating of the feasibility study and the proposed market sounding should be completed before proceeding with PQ and bidding.
(iv) Solo-Kertosono Toll Road: This large project demonstrates what happens when implementation is rushed. The project was well prepared through a comprehensive feasibility study that identified the need for substantial government support in the form of land acquisition and contribution to the investment cost. However, the support was not well specified in the tender documents and the implementation schedule was so unrealistic that only one bid was received. Given the high investment cost of about $0.9 billion of which about a third is expected to be borne by the Government, it would be imprudent to award the concession without the benefit of strong competition. In line with Perpres 67/2005, the tender documents should be improved, and the project rebid.
(v) Margagiri-Ketapang Ferry Terminal: This is the first project whose preparation and execution will be funded from the PDF. The recruitment process for consultants is underway so that the pre-feasibility study can start in the first half of 2008.
(vi) Teluk Lamong Seaport: As decided by the KKPPI, the project is to be implemented by Pelindo III on a B2B basis, but in line with the Perpres 67/2005 requirements. Preliminary results of the ongoing feasibility study indicate that because of underutilized container facilities in the nearby Tanjung Perak port 33
and lower-than-expected demand growth, the project may have to be deferred by 3 years to 2012.
(vii) Kabupaten Bandung Water Supply Project: Considerable time has been needed to resolve the water source problem and determine the optimum project scope, but the pre-feasibility study is finally approaching completion. This will allow PQ and bidding to start within 2008.
(viii) Kota Dumai Water Supply Project: This project has not made any progress because of uncertainties about raw water supply and the local government’s indecisiveness on whether it should be implemented by the public sector through an engineering-procurement-construction contract, or on a PPP basis.
(ix) Kabupaten Tangerang Water Supply Project: This is another example of inadequately prepared bidding. No government support has been indicated in the tender documents, and there has been the possibility of a conflict of interest relative to raw water supply. Not surprisingly, only two bids have been received. According to the latest information, the local government intends to start negotiation with the preferred bidder. To avoid such non-compliance with the Perpres 67/2005 requirement of at least three valid bids and to attract more competition, the government support package should be agreed upon by MOF, MPW and the local government, the potential conflict of interest should be removed, and the project should be rebid.
(x) Palapa Ring Telecommunications Project: Taking into account the existing facilities and demand density, the project has been split up by MCI into the Western and Eastern Rings. The Western Ring will be expanded by the incumbent four network operators. In accordance with the Telecommunications Law, MCI evaluated and selected six consortium members for the construction and operation of the Eastern Ring.
90. There are several reasons for the slow progress on the model PPP projects:
(i) The unfamiliarity of sector ministries, contracting agencies and local governments with the PPP modality and Perpres 67/2005 requirements. The socialization efforts conducted by the KKPPI Secretariat in the form of meetings and workshops have addressed and reduced this obstacle, but they need to continue.
(ii) The tendency to underestimate the importance of project preparation through bankable feasibility studies. There have been frequent attempts, sometimes caused by political pressure, to make shortcuts by expediting bidding, despite ample experience both internationally and in Indonesia that the time saved upfront is more than offset by the subsequent delays in contract negotiations and financial closure. Although there are signs that the efforts of the KKPPI Secretariat to make clear the advantages of a thorough project preparation are finally bearing fruit,23 these efforts need to continue.
(iii) Opposition to reforms and attempts to circumvent these by the so-called B2B approach. Some SOEs would prefer to maintain their monopolies and avoid competition with the private sector. While the Perpres 67/2005 revision addresses
23 MPW’s and BPJT’s recent decision to revise and update previous studies for the Batch IV toll roads, determine the required government support, conduct market sounding and defer the start of PQ and bidding originally scheduled for early January 2008 is an example of the increased attention given to project preparation. 34
this issue, firm leadership by the KKPPI, MSOE and the sector ministries is needed to overcome these attempts.
91. The socialization of the PDF by BAPPENAS and the SID team has brought some encouraging results. As shown in Appendix 11, a total of 15 PPP project proposals have been received from local governments. Out of these, six projects have passed the initial screening and review. Given the commitment of the concerned local governments to follow Perpres 67/2005, these projects are good candidates for PDF assistance:
(i) Kota Bandung integrated terminal in Gedebage, (ii) West Java international airport in Kertajati, (iii) Greater Bandung railway upgrading, (iv) Kota Bandung bulk water supply, (v) Tukad Unda bulk water supply in Bali, and (vi) Kota Denpasar parking center in Bali.
92. It is essential that the KKPPI Secretariat continue to closely monitor and facilitate the preparation and implementation of the 10 model projects, as well as the identification, screening and preparation of other suitable PPP projects, both at the national and regional level. The execution of such projects is the test of the new policy, legal and institutional framework. If successful, it will signal Indonesia’s readiness for private investment in the different infrastructure sectors. That is the reason why PPP projects are the focus of Subprogram 2 of the IRSDP and the second part of the World Bank’s IDPL, which are scheduled for completion in the second half of 2008. As the Executing Agencies for these two major policy-based loans, BAPPENAS and CMEA need to ensure that the completion does not slip to 2009, or even later, due to insufficient progress on the PPP projects.
C. Contribution of the SID TA
93. The SID team hopes that its work has contributed to the progress made in establishing the necessary framework and increasing private sector participation in infrastructure development. As shown in Appendix 12, a total of 505 written outputs were prepared and 655 meetings were attended during the period February 2006-December 2007 to move forward the reforms, socialize them to stakeholders within the central and local governments, and prepare and execute PPP projects. Since the written outputs may be useful for the KKPPI Secretariat as reference material in the future, a thematic index indicating where they can be found is given in Appendix 13.
94. Apart from the Progress Reports No. 1 to 7, the following substantive documents have been and are being prepared by the SID team during the TA period:
• Report and Recommendation of the President to the Board of Directors on the IRSDP, October 200624 • Information Memorandum for the Central Java Coal-Fired Power Project, October 2006 • Information Memorandum for the Pasuruan Combined Cycle Power Project, October 2006 • Information Memorandum for Four Coal-Fired Power Projects Outside Java, October 2006 • Information Memorandum for the Palapa Ring National Fiber Optic Backbone Network Project, October 2006 • Proceedings of the IICE 2006, November 200625
24 Prepared jointly with Ramesh Subramaniam, Principal Economist, ADB. 35
• Memorandum of Understanding of the IRSDP Review Mission26 • Assessment Report on the Solo-Kertosono Toll Road Project, May 2007 • Report on the Gas Supply Review for the Pasuruan Combined Cycle Power Project, November 2007 • Report on the Review of Infrastructure Sector Regulation, November 2007 • Manual on Infrastructure Risk Management, December 2007 • Report on the PSO Policy and Roadmap, December 2007 • Report on the Acceleration of Land Acquisition Process for Toll Road Development, December 2007 • Working Paper on PPP in the Road and Transportation Sectors, January 2008 • Report of the KKPPI Executive Secretary, January 2008 • Information Memorandum on the Batch IV Toll Road Projects, February 2008 • Policy Paper on the Road Fund, February 2008 • Pre-Feasibility Report on the Bandung Water Supply Project, February 2008 • Consolidated Operational Guidelines Manual, February 2008
D. Agenda for 2008
95. The proposed PPP program for the BAPPENAS part of the KKPPI Secretariat is in Appendix 14. The program is challenging, but the institutional capacity in the BAPPENAS part of the KKPPI Secretariat, particularly in the PPP Directorate, has been built up in the past few years, and further support for the PPP project identification, screening, preparation and execution will be provided by the TAS team that is being recruited under the PDF. If additional support is needed on policy-related matters, there is a separate provision of about $0.9 million under the TAS component for the establishment of the P3CU.
25 In the CD format. 26 Prepared jointly with Alfredo Pascual, Advisor (Public-Private Partnership), ADB. Appendix 1 36
REVISED TERMS OF REFERENCE
A. General 1. The technical assistance (TA) will be implemented in close coordination with the World Bank’s Private Provision of Infrastructure Technical Assistance (PPITA) to support the high-level inter-ministerial Committee on Policy for the Acceleration of Infrastructure Development (KKPPI). The PPITA focuses on the KKPPI Secretariat in the Coordinating Ministry of Economic Affairs, and on the Ministry of Public Works, Ministry of Transportation, and Ministry of Energy and Mineral Resources. To avoid duplication of work, the principal focus of the TA will be the KKPPI Secretariat in the National Development Planning Agency (BAPPENAS).
2. Because of the process character of infrastructure sector reforms and the related capacity building, not all TA activities can be fully defined at this stage. Flexibility in TA implementation will therefore be essential. The tasks listed below may be modified, or new ones added, and the consultant inputs in terms of international person-months (IPMs) and domestic person-months (DPMs) may be adjusted.
B. Main Activities
3. The responsibilities of the consultants will include the following:
1. Support and Capacity Building in the KKPPI Secretariat in BAPPENAS (22 IPMs and 24 DPMs) (i) Coordinate the TA activities with the Government, Asian Development Bank (ADB), World Bank, and PPITA consultants to avoid any overlaps. (ii) Guide the other international and domestic consultants engaged under the TA in their work to ensure that the TA objectives are met. (iii) Prepare bi-monthly progress reports on TA implementation. (iv) With input from the other consultants, prepare a draft final report (after 10 months), and final report (after 12 months). (v) Act as a long-term advisor to the Head of the KKPPI Secretariat in BAPPENAS. (vi) Provide support and on-the-job training to BAPPENAS staff in the KKPPI Secretariat in rendering technical support to the KKPPI on cross-sector and sector specific issues; evaluating projects submitted by the PPP nodes in the sector ministries and local governments; preparing briefing notes on these projects for the KKPPI; reviewing and finalizing policy papers; drafting speeches for senior government officials; liaising with the Ministry of Finance on risk allocation and government guarantees; and disseminating other relevant information. (vii) Assist the KKPPI Secretariat in designing and implementing the Government’s Infrastructure Reform Program. 2. Public Service Obligation (PSO) Framework (2 IPMs and 3 DPMs) (i) Determine which infrastructure services, though vital for Indonesia’s economic growth and poverty reduction, are not commercially viable because they do not generate revenues (e.g., rural roads), or because the poor may not be able to afford the tariffs based on full cost recovery (e.g., rural water supply and rural electrification).
Appendix 1 37
(ii) Analyze the current approaches to subsidizing these services and assess their sustainability. (iii) Recommend alternative PSO approaches (such as output-based aid) that are targeted and performance-driven, and that would allow PSP in, and an expansion of, these services to close the gap to the service coverage in neighboring countries. (iv) Quantify the financial requirements of the new PSO approaches. (v) Draft a policy document describing proposed PSO framework in terms of the objectives of the policy, the rationale for the new approaches of service delivery, the roles and responsibilities of the various stakeholders, the institutional and implementation structure, the legal and regulatory environment, and the budgetary implications. 3. Sector Regulation (2 IPMs and 5 DPMs)
(i) Review the current regulatory arrangements for power, gas, toll roads, ports, airports, railways, telecommunications, and water supply and sanitation. (ii) Assess the potential conflict of interest arising from some regulatory bodies being part of the sector ministries that provide funding, staffing and secretarial support, or for assuming other roles such as a contracting authority and operator. (iii) Make recommendations on short- and medium-term development of an optimum regulatory framework, taking into account both international best practice and current conditions in the various infrastructure sectors. (iv) Make recommendations on regulation by contract during the transition period before fully functional independent regulatory bodies are in place. (v) Organize a workshop on best international practices in sector regulation in terms of unbundling multiple roles, ensuring administrative and financial autonomy (e.g., through self-financing by fee collection), and selecting and appointing board members of regulatory bodies. 4. Project Screening and Preparation (25 IPMs and 31 DPMs) (i) Review the lists of projects offered to the private sector during the Indonesia Infrastructure Summit in January 2005 and compiled for the Indonesia Infrastructure 2006 Conference and Exhibition (IICE 2006) in November 2006, and make a preliminary screening based on the information available. (ii) Based on a detailed review of available reports and other documents, assess the status of the readiness for execution of all projects that pass the preliminary screening. (iii) For adequately prepared projects, hold discussions with potential investors and financiers to assess their suitability for PSP, prioritize them accordingly, and determine the best approach for their implementation. (iv) For inadequately prepared projects, specify the scope of additional investigations, studies, and other due diligence work required prior to offering them to the private sector.
Appendix 1 38
(v) For selected model projects, undertake the necessary additional preparatory work such as pre-feasibility studies and bidding documents. 5. Preparation of the Indonesia Infrastructure 2006 Conference and Exhibition (IICE 2006) (1 IPM and 2 DPMs) (i) Participate in meetings and workshops leading to the IICE 2006 in November 2006, and help identify the key issues and formulate the summit agenda. (ii) Draft speeches and presentations for the Government and ADB as necessary. (iii) Assist in administrative and logistical arrangements for the second IICE 2006.
Appendix 2 39
COST ESTIMATES AND FINANCING PLAN ($'000)
Foreign Local Total Item Exchange Currency Cost
A. Asian Development Bank Financing 1. Consultants a. Remuneration and Per Diem i. International Consultants 1,240.0 1,240.0 ii. Domestic Consultants 325.0 325.0 b. Reports and Communications 10.0 5.0 15.0 2Travel a. International 95.0 95.0 b. Regional Travel 5.0 5.0 3. Office Equipment 15.0 15.0 4. Infrastructure Summit 30.0 20.0 50.0 5. Representatives for Contract Negotiations 5.0 5.0 6. Contingencies 205.0 45.0 250.0 Subtotal (A) 1,600.0 400.0 2,000.0
B. Government In-Kind Contribution 1. Office Accommodation 200.0 200.0 2. Remuneration and Per Diem of Counterpart Staff 150.0 150.0 3. Conference Facilities 25.0 25.0 4. Local Travel and Transport 30.0 30.0 5. Secretarial Support and Office Services 30.0 30.0 6 Contingencies 65.0 65.0 Subtotal (B) 500.0 500.0 Total (A+B) 1,600.0 900.0 2,500.0
Source: Asian Development Bank estimates
STAFFING SCHEDULE (As of 31 December 2007)
2006 2007 2008 No. Name Position Feb Mar AprMay Jun Jul Aug Sep Oct Nov DecJan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 1 Vladimir Bohun Team Leader/Senior Infrastructure Advisor 2 Irman Boyle Infrastructure Sector Specialist (Energy) 3 Tony Mack Senior Infrastructure Economist 4 Jan van Rees Senior Telecommunications Specialist 5 Satrio Dewo Telecommunications Specialist 6 Dodi Miharjana Infrastructure Sector Specialist (Water Supply/Energy) 7 Lukas Hutagalung Infrastructure Sector Specialist (Water Supply) 8 Sena Indrapermana Soerono Infrastructure Sector Specialist (Roads/Transport) 9 Darwin Trisna Djajawinata Infrastructure Sector Specialist (Multi-sector) 10 Bambang Bintoro Soedjito Deputy Team Leader/Senior PPP Specialist 11 Irawati Hermawan Adhyaksa Legal Advisor 12 Revie Hamzah Office Manager 13 Robert Brown Senior PPP Transport Sector Specialist 14 Robert Parra Senior PPP Finance and Transaction Specialist 15 Kawik Sugiana KKPPI Executive Secretary 16 Femi Sastrena Senior Energy Specialist 17 Reno Iskandarsyah Legal Consultant (Sector Regulation) 18 Robert Borgstrom Senior Regulatory Expert 19 Trevor Bull Senior PSO Expert 20 Rahman Fajriyansah Legal Consultant (PSO Framework) 21 Greg Wood Senior Toll Road Specialist 22 Dedi Budianto Water Supply Engineer 23 Ita Riyadi KKPPI Administrative Manager 24 Reko Kurniawan IT Assistant Appendix 3 3 Appendix
36
LIST OF CONTRACTS WITH INDIVIDUAL CONSULTANTS (As of 31 December 2007)
No. Name Contract Contract Person- Task Specific Status Period Months No.1 Responsibility I. International Experts 1 Vladimir Bohun Ongoing 14 Feb 06-29 Feb 08 23.4 1/2/3/4/5 Team Leader 2 Tony Mack Completed 1 Sep 06-28 Feb 07 6.0 1/4/5 Toll road and water supply projects 3 Jan van Rees Completed 16-31 Oct 06 0.5 4 Telecommunications projects 4 Robert Brown Completed 19 Feb-17 Aug 07 6.0 1/4 Transport projects (ports, airports, railways, etc.) 5 Robert Parra Completed 5 Mar- 30 Nov 07 6.8 1/4 Water supply and energy projects 6 Femi Sastrena Completed 1 Aug-31 Oct 07 1.0 4 Gas supply availability study for the Pasuruan power project 7 Robert Borgstrom Completed 1 Jul-15 Sep 07 2.5 3 Institutional framework for sector regulation 8 Greg Wood Ongoing 4 Jul 07-8 Feb 08 4.0 1/4 Toll road projects 9 Trevor Bull Completed 26 Aug-21 Dec 07 3.0 2 PSO policy guidelines II. National Experts 1 Bambang Bintoro S. Ongoing 8 Jan 07-29 Feb 08 13.8 1/2/3/4/5 Deputy Team Leader 2 Irman Boyle Completed 20 Feb 06-31 Jan 08 23.3 1/4 Energy and telecommunications projects 3 Satrio Dewo Completed 10 Oct-9 Dec 06 2.0 4 Telecommunications projects 4 Dodi Miharjana Ongoing 15 Dec 06-15 Feb 08 14.0 1/4 Water supply and energy projects 5 Lukas Hutagalung Ongoing 15 Dec 06-29 Feb 08 14.5 1/4 Water supply projects and support to the KKPPI Secretariat 6 Darwin Djajawinata Ongoing 8 Jan 07-29 Feb 08 13.8 1/4 Infrastructure projects (multi-sector) 7 Irawati Hermawan Ongoing 6 Feb-29 Feb 08 13.0 1/2/3/4/5 Legal Advisor 8 Sena Soerono Ongoing 2 Jan-29 Feb 08 14.0 1/4 Transport projects (ports, airports, railways, etc.) 9 Revie Hamzah Ongoing 13 Feb 07-29 Feb 08 12.5 1 Office Manager 10 Reno Iskandarsyah Completed 21 May-17 Sep 07 4.0 3 Institutional framework for sector regulation 11 Dedi Budianto Completed 1 Jul-31 Dec 07 3.5 4 Pre-feasibility study for the Bandung water supply project 12 Rahman Fajriyansah Ongoing 10 Sep-8 Feb 08 5.0 2 PSO policy guidelines 13 Kawik Sugiana Ongoing 15 Jun 07-31 Mar 08 9.5 1 Executive Secretary for the KKPPI Secretariat 14 Ita Riyadi Ongoing 1 Jul 07-31 Mar 08 9.0 1 Administrative Manager for the KKPPI Secretariat 15 Reko Kurniawan Ongoing 1 Oct 07-31 Mar 08 6.0 1 IT Assistant for the KKPPI Secretariat
Appendix 4 4 Appendix
1 1 = Support and Capacity Building in the KKPPI Secretariat; 2 = Public Service Obligation (PSO) Framework; 3 = Sector Regulation; 4 = Project Screening and Preparation;
5 = Preparation of the Second Indonesia Infrastructure Summit. 36
ORGANIZATION CHART OF THE SID TEAM
Team Leader Vladimir Bohun Bambang Bintoro Soedjito (Deputy)
Legal Advisor Office Manager Irawati Hermawan Revie Hamzah
KKPPI Secretariat Sector Regulation PSO Framework Kawik Sugiana Robert Borgstrom Trevor Bull Bambang Bintoro Soedjito Reno Iskandarsyah Rahman Fajriyansah Tony Mack Darwin Djajawinata Lukas Hutagalung Ita Riyadi Reko Kurniawan
Telecoms Energy Toll Roads Transport Waste Water Supply Jan van Rees Vladimir Bohun Greg Wood Robert Brown Management Robert Parra Satrio Dewo Robert Parra Robert Brown Greg Wood Robert Parra Dodi Miharjana Irman Boyle Irman Boyle Tony Mack Sena Soerono Irman Boyle Lukas Hutagalung Dodi Miharjana Darwin Djajawinata Dedi Budianto 5 Appendix Femi Sastrena 36
UPDATED WORK PLAN (As of 31 December 2007)
2006 2007 2008 No Tasks/Subtasks Assigned Specialists Feb Mar AprMay Jun Jul Aug Sep Oct Nov DecJan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Task 1: Support and Capacity Building in the KKPPI Secretariat 1 in BAPPENAS 1.1 Coordination of TA activities with the Government and PPITA VB/BBS 1.2 Administrative management of TA Activities VB/RH 1.3 Guidance of international and domestic consultants VB/BBS 1.4 Preparation of periodic progress reports VB 1.5 Preparation of the final report VB/BBS 1.6 Advice to the KKPPI Secretary VB/BBS 1.7 Support to the KKPPI Secretariat: 1.7.1 Coordination of the support KS/BBS/VB 1.7.2 Legal advice IHA 1.7.3 KKPPI agenda and meetings KS/BBS/DTD 1.7.4 Meeting materials and briefing notes KS/DTD/LH 1.7.5 Speeches and presentations BBS/DTD/IB/LH/TM/VB 1.7.6 Policy papers and guidelines BBS/IB/TM/VB 1.7.7 Cross-sector issues BBS/DTD/IB/VB 1.7.8 Administrative and IT support LH/IR/RK 1.8 Assistance in designing and implementing the IRSDP: 1.8.1 Loan fact-finding VB/IB 1.8.2 Loan pre-appraisal VB/IB 1.8.3 Loan appraisal VB/IB 1.8.4 Loan negotiations VB/IB 1.8.5 Monitoring and adjustment of reform implementation VB/IB/BBS/DTD/DM/LH/SIS
2 Task 2: Public Service Obligation (PSO) Framework
2.1 Review of the current PSO arrangements TB/RF 2.2 Policy principles TB/RF 2.3 PSO compensation TB/RF 2.4 Implementation strategy (road map) TB/RF 2.5 Workshop and report TB/RF
3 Task 3: Sector Regulation
3.1 Review of the current regulatory arrangements REB/RI
3.2 Assessment of conflicts of interests due to multiple roles REB/RI Appendix 6 3.3 Recommendations on regulatory body development REB/RI 3.4 Recommendations on regulation by contract during transition REB/RI 3.5 Workshop and report REB/RI 36
4 Task 4: Project Screening and Preparation
4.1 Meetings with PPP nodes and contracting agencies VB/IB 4.2 Assessment of the status of PPP project preparation VB/IB 2006 2007 2008 No Tasks/Subtasks Assigned Specialists 4.3 Management and updating of project databases DTD Feb Mar AprMay Jun Jul Aug Sep Oct Nov DecJan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 4.4 PPP project screening and prioritization VB/IB/DTD/DM/LH/RB/RP/SIS/TM/GW 4.5 Determination of the best approach for PPP project execution VB/IB/DTD/DM/LH/RB/RP/SIS/TM/GW 4.6 Determination of additional work needed for PPP projects VB/IB/DTD/DM/LH/RB/RP/SIS/TM/GW 4.7 Preparatory work for model PPP projects IB/DTD/DM/LH/RB/RP/SIS/JR/SD/FS/GW/DB Task 5: Preparation of the Indonesia Infrastructure Conference 5 and Exhibition 5.1 Assistance in formulating the conference agenda BBS/TM/VB/IB 5.2 Drafting of speeches and information memoranda BBS/TM/VB/IB 5.3 Assistance in post-conference work BBS/TM/DTD
BBS Bambang Bintoro Soedjito Deputy Team Leader/Senior PPP Specialist DB Dedi Budianto Water Supply Engineer DM Dodi Miharjana Infrastructure Sector Specialist (Water Supply/Energy) DTD Darwin Trisna Djajawinata Infrastructure Sector Specialist (Multi-sector) FS Femi Sastrena Senior Energy Specialist GW Greg Wood Senior Toll Road Specialist IB Irman Boyle Infrastructure Sector Specialist (Energy/Telecommunications) IHA Irawati Hermawan Adhyaksa Legal Advisor IR Ita Riyadi Administrative Manager (KKPPI Secretariat) JR Jan van Rees Senior Telecommunications Specialist KS Kawik Sugiana Executive Secretary (KKPPI Secretariat) LH Lukas Hutagalung Infrastructure Sector Specialist (Water Supply) RB Robert Brown Senior PPP Transport Sector Specialist REB Robert E. Borgstrom Senior Regulatory Expert RF Rahman Fajriyansah Legal Consultant (PSO Framework) RH Revie Hamzah Office Manage
r RI Reno Iskandarsyah Legal Consultant (Sector Regulation) RK Reko Kurniawan IT Assistant RP Robert Parra Senior PPP Finance and Transaction Specialist (Water Supply/Energy) SD Satrio Dewo Telecommunications Specialist SIS
Sena Indrapermana Soerono Infrastructure Sector Specialist (Roads/Transport) Appendix 6 TB Trevor Bull Senior PSO Expert TM Tony Mack Senior Infrastructure Economist VB Vladimir Bohun Team Leader/Senior Infrastructure Advisor
36
DISBURSEMENT STATUS
(As of 31 December 2007)
Disbursement Percentage No. Category Allocation Contract Amount Disbursements Against the Contract Against the (US$) (US$) (US$) Amount Allocation
1 Consultants 1,680,000 1,777,342 1,506,945 85% 90%
2 Equipment 15,000 16,250 14,750 91% 98%
3 Training/Seminar 50,000 85,106 79,215 93% 158%
4 Contract Negotiations 5,000 0 0 0% 0%
5 TA Administration 0 205 202 99% 0%
6 Contingency 250,000 11,398 0 0% 0%
Total 2,000,000 1,890,301 1,601,112 85% 80%
Appendix 7
45
Appendix 8 36
STRUCTURE OF THE PERPRES 67/2005 REPLACEMENT
Chapter I General Provisions/Definitions
Chapter II Main Provisions, Objectives of Cooperation, Scope of Infrastructure, Means of Business Activity, Principles of Cooperation and Scope of Regulation
Part One Main Provisions Part Two Objectives of Cooperation Part Three Scope of Infrastructure Part Four Means of Business Activity in Infrastructure Part Five Principles of Cooperation Part Six Scope of Regulation
Chapter III Planning, Selection and Prioritization of PPP Projects
Part One Planning of PPP Projects Part Two Selection and Prioritization of PPP Projects Part Three Priority List of PPP Projects Part Four Public Consultations
Chapter IV PPP Project Preparation
Part One Due Diligence of PPP Projects Paragraf 1 Objectives and Elements of Due Diligence Paragraf 2 Feasibility Study Paragraf 3 Environmental Impact Analysis Paragraf 4 Risk Analysis Paragraf 5 Choice of PPP Modality Part Two Central/Regional Government Support Paragraf 1 Means of Central/Regional Government Support Paragraf 2 Authority in Providing Central/Regional Government Support Paragraf 3 Central Government Support to Regional PPP Projects Paragraf 4 Regional Government Support to National PPP Projects Part Three Land Availability/Acqusition Part Four Tariff Setting and Adjustment Part Five Drafting the Cooperation/Contract Agreement Part Six Market Sounding
Chapter V Procedures for the Procurement of Business Entity Partner in the context of Cooperation/Contract Agreement
Part One Main Provisions for the Procurement of Business Partner Part Two Procurement Preparation Part Three Prequalification Part Four Public Tendering / Competitive Bidding Part Five Finalization of Cooperation/Contract Agreement
Appendix 8 36
Chapter VI PPP Project Implementation
Part One Setting-up a Special Purpose Company Part Two Approval of Detailed Engineering Design and Implementation Plan Part Three Financial Closure Part Four Project Construction Part Five Project Operation
Chapter VII Project Management and Monitoring
Chapter VIII Unsolicited PPP Projects
Part One Eligibility Criteria for Unsolicited Projects Part Two Preparation of Unsolicited Project Part Three Procurement of Business Entity for Unsolicited Project
Chapter IX PPP in Infrastructure by means of Business Licensing
Chapter X Transition Provision
Chapter XI Closing
Elucidation
Attachments
Attachment I Planning, Selection and Prioritization of PPP Projects Attachment II Public Consultations Attachment III Feasibility Study Attacment IV Risk Analysis Attachment V Choice of PPP Modality Attachment VI Central/Regional Government Support Attachment VII Procurement of Business Entity Partner Attachment VIII Post-transaction Project Monitoring
MEETINGS ATTENDED BY THE SID TEAM (September – December 2007)
Date Place Chair TA Team Members Subject 3 Sep BAPPENAS Budi Hidayat BBS/DB/DM/LH/RP Bulk water provision for the Kabupaten Bandung water supply project 4 Sep Manhattan Hotel Budi Hidayat BBS/DM/DTD/GW/IB/IHA/KS/LH/REB/ Infrastructure sector regulation workshop RF/RI/RP/SIS/TB/VB 5 Sep PLN Budi Hidayat IB Presentation on the Pasuruan gas availability study 5 Sep MOF David Hawes RF/TB PSO framework for SOEs 5 Sep MOF Boediarso Teguh Widodo RF/TB Task 2 PSO interview 5 Sep Valley Hotel Bambang Bintoro Soedjito DM/DTD/IHA/LH Preparation of the Perpres 67/2005 workshop 6-7 Sep Papandayan Hotel Budi Hidayat BBS/DM/DTD/IHA/LH Workshop on the Perpres 67/2005 revision 6 Sep BAPPENAS Wismana Adi Suryabrata RF/TB Task 2 PSO interview 6 Sep MOSE Mantaris Siagian RF/TB Task 2 PSO interview 10 Sep BPJT Bambang Eko DTD Tendering for Batch IV toll road projects 11 Sep BPJT Mohammad Irian BBS/DM/DTD/VB Market sounding for Batch IV toll road tendering 11 Sep BPJT Mohamad Irian BBS/DM/DTD/GW/SIS/VB Market sounding for Batch IV toll road tendering 12 Sep RMU Rionald Silaban DM/DTD/GW Establishment of a road fund 12 Sep BAPPENAS Budi Hidayat LH Bandung water supply projects
14 Sep Red Top Hotel Budi Santoso (DGPT) IB Presentation on the Palapa Ring project 18 Sep BPJT Abram Barus DTD Tendering for Batch IV toll road projects 18 Sep MOT Harstjarja Harijogi RF/TB Task 2 PSO interview 19 Sep MOT Tundjung Inderawan RF/TB Task 2 PSO interview 19 Sep MOT Iskandar Abubakar RF/TB Task 2 PSO interview 19 Sep CMEA Eddy Satriya RF/TB Task 2 PSO interviews 19 Sep CMEA Mesra Eza DTD/RF Road fund establishment and PSO framework 20 Sep MOT Cucuk Suryo Suprojo RF/TB Task 2 PSO interview 20 Sep Mulia Hotel Hongjoo Hahm BBS Presentation on PPITA issues 19 Sep BAPPENAS Budi Hidayat DTD Proposed PPP projects in Kabupaten Sleman 20 Sep BPJT Abram Barus DTD/GW Tendering for Batch IV toll road projects
24 Sep BAPPENAS Budi Hidayat BBS/DM/DTD/GW/KS/VB Market sounding for Batch IV toll road tendering Appendix 9 26 Sep Wisma Bakrie II Budi Hidayat BBS/DM/DTD/GW/IB/IHA/KS/LH/RF/TB Status and outlook of the SID TA /VB 26 Sep MOT Sugiadi Waluyo SIS Unsolicited railway projects 27 Sep PLN Budi Hidayat IB/VB Presentation on the Pasuruan gas availability study 27 Sep Four Season Hotel Dedy S. Priatna BBS/IHA/KS Echelon I meeting on Perpres 67/2005 revision
27 Sep BPJT Bambang Eko DTD/GW Market sounding for Batch IV toll road tendering 48
Date Place Chair TA Team Members Subject 2 Oct World Bank Hongjoo Hahm VB IDPL processing 2 Oct BAPPENAS Budi Hidayat BBS/DM/LH Bandung water supply project 3 Oct Wisma Bakrie II Budi Hidayat BBS/GW/SIS Presentation on the PT Railink project 3 Oct Wisma Bakrie II Budi Hidayat BBS/DM/IHA/LH Capacity building for the Tangerang water supply project 3 Oct BPJT Bambang Eko DTD Proposed advisory services for BPJT 4 Oct Wisma Bakrie II Budi Hidayat IB/VB Finalization of the Pasuruan gas availability report 4 Oct BAPPENAS Dedy S. Priatna DM/DTD Land capping for toll road projects 8 Oct Wisma Bakrie II Robin Suryo BBS/DTD/IB/IHA/KS/TB/VB Progress of Task 2: PSO Framework 8 Oct Klungkung, Bali Wayan Chandra DM Capacity building for Kabupaten Klungkung 9 Oct Denpasar, Bali Anindya Putra DM Kota Denpasar proposal for PDF Support 9 Oct BPJT Bambang Eko DTD Proposed advisory services for BPJT 10 Oct Bakrie II Budi Hidayat BBS/DM/IHA/LH Workshop for the Tangerang bid evaluation team 23 Oct BPP SPAM Hilwan DM Workshop for the Tangerang bid evaluation team 25 Oct BPP SPAM Rahmat Karnadi BBS/DM Workshop for the Tangerang bid evaluation team 25 Oct ADB IRM Francois Cherer VB Progress on the model PPP projects 29-31 Mercure Jakarta Rachmat Karnadi BBS/DB/DM/IHA/KS/LH Training on Bid Evaluation for the Tangerang water Oct Hotel supply project
30 Oct PT Pelindo III Robert H. Sianipar SIS Teluk Lamong model port project 1 Nov BAPPENAS Budi Hidayat LH Guidelines for public consultations 1 Nov CMEA Boediono IHA/KS/LH Revision of Perpres 67/2005 and progress of PPP model projects 1 Nov BPJT Robin A. Suryo DTD Data on land acquisition for toll road projects 1 Nov Bina Marga Wijaya Seta DTD Data on land acquisition for toll road projects 2 Nov Bina Marga Wijaya Seta DTD Data on land acquisition for toll road projects 2 Nov PDAM Bandung Tardan LH Kota Bandung bulk water supply project 2-3 Nov Mercure Bali Hotel Budi Hidayat BBS/DM/IB/KS/LH/RF Training program on the model PPP projects 5 Nov BPJT Mohammad Irian DTD Budget simulation on land acquisition 5 Nov Bina Marga Wijaya Seta DTD Data on land acquisition for toll road projects
5 Nov PLN Nasri Sebayang IB/VB Central Java model power project Appendix 9 6 Nov Arya Dutta Hotel Mesra Eza BBS/DM/KS Risk management for PPP infrastructure projects 7 Nov Sahid Hotel Mesra Eza BBS/IHA/KS Advanced legal drafting for PPP infrastructure projects 7 Nov PLN Nasri Sebayang IB/VB Central Java model power project 7 Nov ADB IRM Elmar Bauma VB Balikpapan port project 7 Nov Bina Marga Wijaya Seta DTD Data on land acquisition for toll road projects
7 Nov Grand Preanger Dedy S. Priatna BBS Water Financing Conference 49 8 Nov Grand Alia Mesra Eza BBS/DM/KS Training of trainers for PPP infrastructure projects
Date Place Chair TA Team Members Subject 9 Nov BAPPENAS Dedy S. Priatna BBS/DM/DTD/GW/IHA/KS/LH Acceleration of land acquisition for toll road projects 9 Nov Wisma Bakrie II Budihardjo Sukmadi BBS/GW/VB Toll road projects of DKI Jakarta 13 Nov RMU Bramantyo Istijoso DM Risk sharing for water supply projects 14 Nov Le Meredien Hotel Budi Hidayat DM/DTD/GW/IHA Acceleration of land acquisition for toll road projects 14 Nov Sultan Hotel Terry Lacey (EU) IB/RF Workshop on power purchase agreements 15 Nov DG Oil & Gas Luluk Sumiarso IB Development of geothermal energy 15 Nov CMEA Bambang Susantono BBS/DM/DTD/IHA/KS Land acquisition for toll road projects 20 Nov MOT Sugiadi Waluyo BBS/GW/SIS Coal transport by railway in Sumatra (Bengkulu) 21 Nov Bappeda Bandung Amalia Purbani LH Kota Bandung bulk water supply project 21 Nov Millenium Hotel Budi Hidayat BBS/IHA/KS/LH Harmonization of Perpres 67/2005 revision with PPs 6/2006 and 50/2007 22 Nov BAPPENAS Budi Hidayat KS Workshop on GIS for Indonesian Infrastructure 22 Nov VP Office Moh. Abduh DM/DTD/IHA Acceleration of land acquisition for toll road projects 23 Nov Dharmawangsa Dedy S. Priatna DM/DTD/IHA/KS Echelon I meeting on the acceleration of land Hotel acquisition for toll road projects 24 Nov Mahakam Hotel Budi Hidayat DM/DTD/KS Acceleration of land acquisition for toll road projects 27 Nov BAPPENAS Budi Hidayat DM/IHA Kota Bandung waste-to-energy project 30 Nov BAPPENAS Bastary P. Indra BBS/DM/DTD/IB/IHA/KS/LH/RF/TB/VB Confirmation meeting for Task 2: PSO Framework 30 Nov ADB IRM Martin Verhoeven (IMF) VB Fiscal liabilities of SOEs
3 Dec BPJT Hisnu Pawenang DTD Budget simulation of land acquisition 4 Dec Millenium Hotel Wendy Aritenang RF/SIS/TB Conference on the new Railway Law 23/2007 4 Dec Ritz Carlton Francois Cherer BBS/IB/KS/VB Eurocham PPP seminar 4 Dec Yasmin Hotel Mesra Eza DM Training for PPP risk management 5 Dec Yasmin Hotel Mesra Eza DM Training for PPP risk management 5 Dec BAPPENAS Bastary P. Indra DM/DTD/VB Market sounding for Batch IV toll road tendering 5 Dec Manhattan Hotel Budi Hidayat BBS/IHA/KS/LH Workshop on public consultation guidelines for PPP projects 7 Dec BPJT Mohammad Irian DTD Pre-market sounding for Batch IV toll road tendering 7 Dec BAPPENAS Bastary P. Indra DTD/VB Market sounding for Batch IV toll road tendering 8 Dec Pangeran Hotel Nugroho Indrio SIS Panel discussion on material railways master plan
10 Dec Shangri-La Hotel Bambang Susantono DM/SIS Korea – Indonesia PPP Fair Appendix 9 11 Dec Millenium Hotel Robin Suryo DM/IB/KS/RF/SIS/TB/VB Workshop for Task 2: PSO Framework 12 Dec Mercure Batam Mesra Eza DM Training for trainers on PPP projects 12 Dec Jakarta Convention Budi Santoso (DGPT) IB Telecommunications Summit Center 13 Dec ADB IRM Sam Dale (Wood Mac.) VB Completion of the Pasuruan gas availability study
17 Dec Merchantile Club Hisnu Pawenang DM/IB/LH Pre-market sounding for Batch IV toll road tendering 50 17 Dec Merchantile Club Hisnu Pawenang DM/IB/RF/LH Market sounding for Batch IV toll road tendering
Date Place Chair TA Team Members Subject 17 Dec ADB IRM Alfredo Pascual IB Procurement method for the PDF 18 Dec Ritz Carlton Hotel Bambang Susantono DM Joint task force Indonesia-South Korea 18 Dec Sultan Hotel Bastary P. Indra DM/DTD/IB/IHA/LH/RF/SIS Revision and harmonization of Perpres 67/2005 18 Dec Wisma Bakrie II Bambang Susantono DTD/IHA/KS/RK Toll road projects of DKI Jakarta 19 Dec BAPPENAS Bastary P. Indra IB Administration of the PDF and TA 4872 27 Dec BAPPENAS Bambang Prihartono IB/SIS Balikpapan port project 26 Dec Klungkung, Bali Wayan Chandra DM Tukad Unda water supply project 27 Dec Karangasem, Bali Wayan Geredeg DM Potentail PPP project in Kabupaten Karangasem
BBS – Bambang Bintoro Soedjito; DM – Dodi Miharjana; DTD – Darwin Trisna Djajawinata; IB – Irman Boyle; IHA – Irawati Hermawan Adhyaksa; GW – Greg Wood; KS – Kawik Sugiana; LH – Lukas Hutagalung; RF – Rahman Fajriansyah; RI – Reno Iskandarsyah; RP – Robert Parra; SIS – Sena Indrapermana Soerono; TB – Trevor Bull; VB – Vladimir Bohun.
Appendix 9
51
STATUS OF MODEL PPP PROJECTS
No. Project Status Next Steps 1 Central Java Coal- PLN is retaining IFC for advisory services in project preparation Execution of the advisory Fired Power Plant and transaction execution services agreement by PLN and Planned capacity: According to the original schedule, pre-feasibility study, bid IFC in January 2008 2x600 MW documents, government support determination, and project Report by PLN to Investment estimate: packaging were to be completed by end-2007 so that PQ would Bappenas/KKPPI on the revised $1.2 billion be reopened in early 2008, followed by bidding schedule and work plan (in However, negotiations with IFC have been protracted, mainly response to the letter by the because of two issues (applicable law – US or Indonesian; Deputy Minister for Infrastructure payment schedule for success fee – PPA signing or financial and Facility) closure) Start of work by IFC within 1 Compromise solution on these issues agreed between PLN and month after the signing of the IFC in November, and the advisory services agreement finalized advisory services agreement and initialed in December 2007
2 Pasuruan Combined At PLN’s request, first the gas supply availability in the Discussions by PLN’s Cycle Power Plant Pasuruan area in East Java was to be assessed under the SID Directorate of Primary Energy Planned capacity: TA with potential gas suppliers 1x500 MW Wood Mackenzie recruited as the consultant Decision by PLN to proceed with Investment estimate: Work on the assessment started in early August 2007 the full feasibility study and $275 million Findings and recommendations presented by Wood Mackenzie request for the use of the PDF on 27 September 2007 Recruitment of consultants for Clarification meeting with BP Migas and DG Migas held on 4 the feasibility study October 2007 Final report circulated by BAPPENAS on 16 November 2007 3 Medan-Kualanamu Feasibility study for the Medan-Kualanamu-Lubuk Pakam Barat Completion of the feasibility Toll Road prepared by Bina Marga study updating (jointly with Bina 10 Appendix Length: 22 km Because of a low FIRR of 7.5%, major government support Marga; taking into account the Investment estimate: needed airport schedule) $142 million Updating of the feasibility study including traffic survey ongoing, Coordination meeting on the as agreed in the meetings with MPW and BPJT on 11 and 24 provision of support by the September 2007 central and local government
Start of prequalification deferred by BPJT from early January Preparation of an information 52 2008 to allow adequate project preparation memorandum Market sounding event
No. Project Status Next Steps 4 Solo-Kertosono Toll Letter requesting government support sent by MPW to the Coordination with the Trans- Road KKPPI in July 2006 Java Expressway Study Length: 165 km Comprehensive JICA-financed feasibility study completed in financed by WB Investment estimate: January 2007 Decision by the KKPPI on the $928 million Prequalification also completed in January 2007, with three best approach to project participants meeting the technical and financial criteria execution (concession award to Assessment Report prepared by the SID team in May 2007 the sole bidder, inclusion in the pointed out deficiencies in the tender documents and predicted Trans-Java Expressway, or weak competition rebidding) Only one bid received by BPJT in June 2007 Negotiation with the sole bidder approved by MPW Assessment Report distributed by BAPPENAS to Echelon I officials 5 Margagiri-Ketapang Several meetings held by BAPPENAS and the SID team with Following ADB’s approval, Ferry Terminal MOT to agree on the TOR and budget for project preparation issuance of the request for
Capacity: 0.9 million and transaction execution proposal to the short-listed vehicles and 1.2 million BAPPENAS and ADB approved MOT’s request to use the PDF consulting firms passengers in 2010 for the required consulting services Selection of the consultants Investment estimate: Procurement Team established by BAPPENAS and MOT Preparation of the pre-feasibility $97 million Recruitment of consultants advertised study Request for proposals, including evaluation criteria, and short- Capacity building under the list of six consulting firms submitted by BAPPENAS on 7 PPITA for DGLT as the December 2007 for approval by ADB contracting agency 6 Teluk Lamong KKPPI decided in March 2007 that the project should be Completion of the legal review, Seaport (Tanjung prepared and executed by Pelindo III, in line with the Perpres EIA, soil investigations and basic Perak Port 67/2005 principles design Expansion) Several meetings held by BAPPENAS and the SID team with Decision on the optimum project 10 Appendix Capacity: 1.9 million Pelindo III to identify gaps in project preparation and discuss the schedule TEUs/year, with 1,280 TOR and budget for the feasibility study m berth Domestic consultants recruited and financed by Pelindo III to Investment estimate: conduct the study $275 million Technical, economic, financial and risk analyses completed so far indicate that the project will be needed in 2012 (i.e., 3 years 53 later than originally envisaged)
No. Project Status Next Steps 7 Kab. Bandung Water Revision of the project scope to take into account creation of the Completion of the financial part Supply new Kab. Bandung Barat, solve the water resource problem and of the pre-feasibility study Capacity: 450 make the project more attractive for private sector participation Presentation of results to the liters/second Technical part of the pre-feasibility study completed – East local government Investment estimate: Bandung selected as the project area, and Citarik River and Transaction execution including $26 million Guavelet water springs as the raw water source bidding and concession award Demand survey, including willingness to connect and willingness to pay, completed 8 Kota Dumai Water Pre-feasibility study ongoing Put on hold because of the Supply Implementation through a turn-key EPC scheme funded from its pending decisions on project Capacity: 500 budget considered by the local government modality and raw water liters/second Water resource intake not permitted by the local government of availability Investment estimate: Rokan Hilir $44 million 9 Kab. Tangerang Prequalification completed with four companies meeting the Decision on further procedure as Water Supply technical and financial criteria Perpres 67/2005 requires Capacity: Tender documents finalized, without indicating any government rebidding when less than three 550 liters/second support to test the market valid bids are received Investment estimate: Bids invited from the prequalified companies in July 2007 $37 million Workshop on bid evaluation conducted by BAPPENAS and the SID team for the local government on 29-31 October 2007 Despite closing date extension to 5 November 2007, only two bids received 10 Palapa Ring World-Bank financed feasibility study for the western region Decision on the business model Telecommunications completed and the recommended project scope and for the western region (single or
Project implementation arrangements presented in September 2007 multiple packages) by MCI 10 Appendix Features: seven rings Under MCI’s guidance, a consortium for project development in Implementation of the work plan of fiber optic network the eastern region established by six companies, and the for the eastern region by the backbone totaling consortium construction and management agreement signed in consortium 30,000 km November 2007 Investment estimate: Work plan for the eastern region presented to MCI by the $1.5 billion consortium members in December 2007 54
STATUS OF OTHER REGIONAL PPP PROJECTS
No. Project Status Next Steps 1 Kota Bandung Formal request for PPP project development received from the Formal commitment by the local Integrated Terminal- local government in March 2007 government to follow Perpres Gedebage Request letter from the West Java Planning Agency for project 67/2005 and submission of the screening received on 10 July 2007 request for PDF assistance to Initial presentation made on 17 July and the project site visited BAPPENAS on 3 August 2007 Submission of a request for TOR drafted by the SID team for the pre-feasibility study and location permit to MOT sent to the local government on 9 October 2007 Preparation of a land acquisition Coordination meeting on PPP projects in BAPPEDA Bandung plan and budget recommended that the local government requests PDF assistance 2 Kota Bandung Multi- Request letter from the West Java Planning Agency for project No further action required Storey Housing- screening received on 10 July 2007 Gedebage Initial presentation made on 17 July 2007 Site visited on 3 August 2007 BAPPENAS and Kota Bandung advised that housing is not considered part of infrastructure under Perpres 67/2005 and hence is ineligible for the PDF 3 West Java Initial presentation by the provincial government made on 17 Completion of a legal International Airport- July 2007 assessment of the MOU by the Kertajati Technical discussion held on 3 August 2007 provincial government Master plan and feasibility study reviewed by the SID team Formal commitment by the Letter sent by BAPPENAS to the provincial government on 21 provincial government to follow
September 2007 with an in-principle endorsement of the project, Perpres 67/2005 11 Appendix asking for their commitment to Perpres 67/2005 and dropping of Drafting of the TOR for PDF MOU earlier signed by the West Java Development Agency with assistance a Malaysian-US consortium
55
No. Project Status Next Steps 4 Kota Bandung Bulk Discussion and presentation held in Bandung on 3 August 2007 Discussion of the draft TOR with Water Supply Request letter from Walikota for technical assistance received the local government ($... million) on 30 August 2007 Capacity building workshop for Review of the pre-FS completed by the SID team the new PPP team Draft TOR for PDF assistance prepared by the SID team Formal commitment by the local government to follow Perpres 67/2005 5 Kab. Klungkung Request letter from Bupati Klungkung for PPP scheme None at this stage, due to the Ferry Terminal-Nusa socialization received on 8 June 2007 priority given by the local Penida Socialization done on 21-22 June 2007 government to Project No. 6 Request letter for technical assistance received on 17 July 2007 Pre-feasibility study reviewed, the project discussed with the local government and its site visited by the SID team 6 Tukad Unda Bulk Request letter from Bupati Klungkung for PPP scheme Agreement with the local Water Supply socialization received on 8 June 2007 government on the TOR ($40 million) Socialization done on 21-22 June 2007 Submission of the assistance Request letter for technical assistance received on 17 July 2007 package to ADB Review of the pre-FS completed Recruitment of consultants Assistance for the project endorsed by BAPPENAS Local PPP team established Training workshop for the team held on 2-3 November 2007 TOR for the pre-feasibility study and transaction execution under the PDF drafted by the SID team 7 Kab. Sleman Prime Request letter from Bupati Sleman for technical assistance Put on hold Drinking Water Zone received on 21 July 2007 11 Appendix Infrastructure Preliminary project description submitted by the local Provision government ($4 million) Preliminary review completed by the SID team As indicated at the meeting of 19 September 2007 with Sekda, the local government not yet ready to make a firm commitment
56
No. Project Status Next Steps
8 Kab. Sleman Cargo Request letter from Bupati Sleman for technical assistance Put on hold Terminal-Patukan received on 21 July 2007 ($3 million) Pre-feasibility study submitted on 17 September 2007 As indicated at the meeting of 19 September 2007 with Sekda, the local government not yet ready to make a firm commitment 9 Kab. Sleman Bus Request letter from Bupati Sleman for technical assistance Put on hold Terminal-Jombor received on 21 July 2007 ($2.5 million) Preliminary project description submitted on 17 September 2007 As indicated at the meeting of 19 September 2007 with Sekda, the local government not yet ready to make a firm commitment 10 Kab. Sleman Market Request letter from Bupati Sleman for technical assistance Put on hold ($4.6 million) received on 21 July 2007 As indicated at the meeting of 19 September 2007 with Sekda, the local government not yet ready to make a firm commitment
11 Kab. Tangerang Request letter from Bupati Tangerang for technical assistance Put on hold Integrated Fishing received on 23 August 2007 Port-Cituis Planning study submitted by the local government Additional information repeatedly requested by the SID team not yet received from the local government that does not seem to be ready yet to make a firm commitment
Appendix 11 11 Appendix 57
No. Project Status Next Steps
12 Kota Denpasar Request letter from Walikota Denpasar for technical assistance Submission of the revised Parking Center received on 29 August proposal by the local ($1 million) Project screening completed and the local government advised government to expand the project scope Drafting of the TOR for PDF Public transport system added to the project scope assistance 13 Kota Denpasar Bulk Request letter from Walikota Denpasar for technical assistance No further action required Water Supply received on 29 August ($3.2 million) Project screening completed and the local government advised to modify the project scope Bilateral financing from France proposed for the project 14 Kota Denpasar Waste Request letter from Walikota Denpasar for technical assistance No further action required Treatment Facility received on 29 August Rejected on the ground that the project is already being implemented with a private sector partner (Navigat of UK)
15 Greater Bandung Request letter from the West Java provincial government for Technical meeting with the Railway Upgrading technical assistance received on 10 July 2007 provincial government to clarify ($120 million) Letter sent by BAPPENAS to the provincial government on 21 the nature and scope of the September 2007 with an in-principle endorsement of the project, project asking for their commitment to Perpres 67/2007 Completion and review of the Grant received by the provincial government from France for a technical study technical study of the project that does not cover PPP project Drafting of the TOR for PDF preparation assistance to fill gaps in PPP Coordination meeting on the technical study held in BAPPENAS project preparation on 27 November 2007 11 Appendix
58
WRITTEN OUTPUTS AND MEETINGS DURING 2006-2007
140 140 126 125 120 120 112 120 106 99 100 100 90 81 80 80 69 71 62 60 60 Meetings
40 34 35 40 30 Written Outputs Outputs Written 20 20
0 0
Feb - May Jun - Jul Aug - Oct Nov 06 - Mar - May Jun - Aug Sep - Dec 06 06 06 Feb 07 07 07 07 12 Appendix Period
Written Outputs Meetings 59
THEMATIC INDEX OF WRITTEN OUTPUTS
1. TA Coordination
Progress Attachment No. Title Date Report No. No. 1 Revised approach to the recruitment of SID consultants 17/2/06 1 A.1 2 Review of IP3’s preliminary proposal for TA 4728 13/3/06 1 A.2 3 Action plan for the engagement of SID consultants 1 A.3 4 Evaluation of the curriculums vitae of two candidates for the IP3 team leader 8/5/06 1 A.4 assignment 5 Demarcation of work between IP3 and the PPITA consultants in CMEA 8/5/06 1 A.5 6 Evaluation of the curriculums vitae of two candidates for Task 1 under TA 4728 9/5/06 1 A.6 7 Terms of reference for Risk Management Advisors in the Ministry of Finance 2 A.1 8 Terms of reference and work plan for the Senior Infrastructure Economist 2 A.2 9 Presentation on the current status of and next steps for TA 4728 9/11/06 3 A.2 10 Follow-up actions for TA 4728 17/11/06 3 A.3
11 Recruitment of Infrastructure Sector Specialists and Office Manager (TOR) 24/11/06 3 A.4 12 Recruitment of PPP Finance and Transaction Specialist (TOR) 3 A.5 13 Recruitment of the PPP Finance and Transaction Specialist (justification and budget) 1/12/06 4 A.1 14 Recruitment of Robert Parra and Robert Brown (work plan and TOR) 5/12/06 4 A.2 15 Recruitment of the PSO and Sector Regulation Specialists (TOR) 5/1/07 4 A.3 16 TA work load (progress on urgent tasks) 17/1/07 4 A.4 17 Review of, and TOR for, national consultant candidates for PDF operationalization 10/1/07 4 A.5 18 TA work load (status of urgent tasks) 30/1/07 4 A.6 19 Progress matrix for TA 4728 18/12/06 4 B.4 20 Presentation on the Progress Report No. 4 7/3/07 5 A.1
21 Minutes of the meeting of 7 March 2007 on the Progress Report No. 4 7/3/07 5 A.2 13 Appendix 22 Note on resource availability under TA 4728 8/3/07 5 A.3 23 Revised organization chart and work plan for TA 4728 20/3/07 5 A.4 24 Presentation on the status and outlook of TA 4728 23/4/07 5 A.5 25 Involvement of the TA team in model project preparation and execution 5 A.6 26 Note on the recruitment of PSO consultants and the PDF policy paper 11/5/07 5 A.7 27 TOR for the toll road specialist 29/5/07 5 A.8 60 28 Presentation on the Progress Report No. 5 21/6/07 6 A.1
29 Status of IBRD Loan No. 4696-IND activities in BAPPENAS (Bahasa) 3/9/07 7 A.1 30 Memorandum from Deputy VI BAPPENAS on PPITA supervision mission (Bahasa) 20/9/07 7 A.2 31 Presentation on Progress Report No. 6 26/9/07 7 A.3 32 Minutes of meeting of 26 September 2007 on Progress Report No. 6 26/9/07 7 A.4 33 Memorandum on major change in the scope of TA 4872-INO: Enhancing Private Sector 18/12/07 7 A.5 Participation in Infrastructure Provision
2. Task 1: Support to the KKPPI Secretariat
a. General
Progress Attachment No. Title Date Report No. No. 1 Talking points for the KKPPI Workshop in Jakarta on 21 February 2006 1 B.1 2 Presentation for the PPPI Days Conference in Washington on 8 June 2006 1/6/06 1 B.3 3 Analysis of infrastructure fund proposals 1/3/06 1 C.1 4 Summary of issues and problems in infrastructure projects 13/3/06 1 C.2
5 Review of and recommendations on the draft MOF Decree on the Implementing 1 C.10 Guidelines on Risk Mitigation and Management 6 Review of the proposal on the Knowledge Management and Dissemination Unit in 22/3/06 1 C.11 CMEA 7 Briefing note on infrastructure for the visit of the World Bank President 4/4/06 1 C.12 8 Analysis of the PPP project pipeline 7/4/06 1 C.13 9 Presentation on the IRP for the Japan-Indonesia Consultation on 26 June 2006 26/6/06 2 B.1 10 Presentation for the 2nd Annual Conference on Privatization, Public-Private Partnerships 6/6/06 2 C.1 and Private Initiatives in Kuala Lumpur on 12-13 June 2006 11 Comparison of terms of reference for a PSO policy review 2 C.3
12 Note-to-File on PLN’s 10,000MW coal-fired power plant crash program 12/7/06 2 C.4 13 Appendix 13 Draft CMEA Decree on the PSO Policy Coordination Team 2 C.5 14 Presentation material for a KKPPI meeting on the proposed PPP model projects 2 C.6 15 Presentation for the US-ASEAN Business Council on PPP infrastructure projects 14/7/06 2 C.7 16 Talking points for the BAPPENAS Minister for his interview with Investor Magazine 2 C.8 17 Draft letter to the contracting agencies clarifying model PPP projects 21/7/06 2 C.9
18 Draft portion of the President’s Annual Speech, related to the implementation status of 2 C.12 61 infrastructure projects in Indonesia 19 Minutes of the KKPPI Secretariat meeting on the proposed model PPP projects 28/8/06 2 C.14
20 Analysis of the PPP project pipeline 2 C.15 21 Comments on the Vice President’s letter to KKPPI 16/11/06 3 B.1 22 Presentation on the role of the KKPPI 29/11/06 3 B.2 23 Comments on IP3’s P3CU Institutional and Organizational Report 3 C.1 24 Suggestions for a presentation at the KKPPI meeting 14/9/06 3 C.3 25 Briefing note on the PDF 18/9/06 3 C.5 26 Presentation for a workshop on model projects 20/9/06 3 C.6 27 Presentation on the status of model project preparation 25/9/06 3 C.7 28 Responses to a questionnaire from the Government of Japan on infrastructure issues 26/9/06 3 C.8 29 Checklist for PPP projects 5/10/06 3 C.9 30 Inputs for BAPPENAS Chairman’s meeting with Bloomberg News 19/10/06 3 C.10 31 Inputs for BAPPENAS Chairman’s interview with Trust Magazine 8/11/06 3 C.13 32 Draft of BAPPENAS Chairman’s speech at the Annual Meeting of the National 10/11/06 3 C.14 Association of Contractors 33 Comments on IP3’s Standard Documentation Report 3 C.15 34 Inputs for BAPPENAS Chairman’s participation in a Cabinet meeting 22/11/06 3 C.16 35 Note to file on the bidding for PLN’s crash program 12/12/06 4 B.1
36 Report on infrastructure reforms and projects for a CMEA meeting with ambassadors 4 B.2 and heads of chambers of commerce 37 Inputs for BAPPENAS’ annual report to the President 4 B.3 38 Review of IP3’s reports on standard procedures and standard tender documentation 4 B.5 39 Draft letter and notes on financial modeling for infrastructure projects 4 B.6 40 Simplified financial model for toll road projects 4 B.9 41 Information for due diligence for the issuance of foreign currency state bonds 4 B.11 42 Briefing notes on the revolving land acquisition fund, government support for toll road 11/1/07 4 B.12 projects, and Perpres 67/05 revision 43 Presentation on progress in infrastructure development at the Macquarie Infrastructure 4 B.16
Conference 13 Appendix 44 Monitoring and reporting framework for infrastructure reforms 4 B.18 45 Note to file on MOF Regulation 146/06 on PLN’s crash program 4 B.20 46 List of policy reform activities in 2007 30/1/07 4 B.21 47 Status of the preparation of the model PPP projects 7/2/07 4 B.23 48 Presentation on the institutional framework for infrastructure financing by non-bank 15/2/07 4 B.27 institutions 62 49 Presentation on the KKPPI role and agenda 19/2/07 4 B.28
50 Minutes of meeting with Bank Indonesia on infrastructure development 21//2/07 4 B.29 51 Status of infrastructure projects offered at IIS 2005 and IICE 2006 20/2/07 4 B.30 52 Investment cost estimates for the infrastructure projects 20/2/07 4 B.31 53 Draft response to the DGEEU letter on the model power projects 21/2/07 4 B.32 54 Response to the KKPPI Secretary I’s queries on PPP definition and the backlog of 23/2/07 4 B.33 unfunded projects 55 Status of infrastructure projects covered by Keppres 39/1997 4 B.34 56 Summary of the status of the IIS 2005 and IICE 2006 infrastructure projects 4 B.35 57 Briefing note on the model power projects 4 B.36 58 Presentation on transport policy in the era of regional autonomy 4 B.37 59 Summary report on the Japan-Indonesia PPP Forum of 6 March 2007 6/3/07 5 B.1 60 Presentation for the 14th KKPPI Meeting of 16 March 2007 (Bahasa) 1/3/07 5 B.4 61 Draft minutes of the 14th KKPPI Meeting of 16 March 2007 (Bahasa) 16/3/07 5 B.5 62 Draft minutes of the Echelon I meeting of 22 March 2007 following up the 14th KKPPI 22/3/07 5 B.6 Meeting (Bahasa) 63 Presentation on PPP vision, mission and policy 5 B.10 64 Progress report on PPP project implementation (Bahasa) 2/4/07 5 B.11
65 Updated status report on model projects (Bahasa) 2/4/07 5 B.12 66 Draft TOR for the Executive Secretary of the KKPPI 5 B.13 67 Points of discussion with the World Bank 5 B.16 68 Report on the Workshop on Accelerating Economic Regulatory Reform 11/4/07 5 B.17 69 Note on public consultations in policy and regulatory development 5 B.19 70 Monitoring of the Infrastructure Policy Package 2006 (Bahasa) 30/5/07 5 B.20 71 Brief report on PPP in infrastructure in Indonesia 5 B.22 72 Note on Indonesia Infrastructure Update 5 B.23 73 Points of discussion for policy dialogue with CMEA and the World Bank Institute 18/6/07 5 B.24 74 Presentation on Indonesia’s infrastructure development for the Indonesia-Korea Joint 1/5/07 5 B.25
Task Force Meeting 13 Appendix 75 Record of discussion at the Indonesia-Korea Joint Task-Force Meeting of 1 May 2007 5 B.26 76 Draft 1 of the Infrastructure Policy Package 2007 (Bahasa) 15/5/07 5 B.29 77 Comments on the PPP study for the PDF 16/5/07 5 B.30 78 Comments on the PDF procurement arrangements 18/5/07 5 B.31 79 Draft of revised CMEA Regulation No. 1/06 on KKPPI Structure and Organization 24/5/07 5 B.32 (Bahasa) 63 80 Draft 2 of the Infrastructure Policy Package 2007 (Bahasa) 22/5/07 5 B.33
81 Presentation on the Infrastructure Policy Package 2007 (Bahasa) 25/5/07 5 B.34 82 Updated status of projects under Keppres No. 39/1997 and 64/00 (Bahasa) 5 B.35 83 Revised TOR for the PPP study 28/5/07 5 B.36 84 Responses to questions from the Korean Development Institute on the Indonesian 29/5/07 5 B.37 infrastructure sectors 85 Presentation on Indonesia’s infrastructure at the 3rd World Islamic Economic Forum 29/5/07 5 B.38 86 List and profiles of infrastructure project opportunities for the 3rd World Islamic 29/5/07 5 B.39 Economic Forum 87 PPP framework under Law No. 23/07 on Railways 5 B.40 88 Presentation and speech for the Chairman of BAPPENAS at the Indonesia-Malaysia 18/6/07 5 B.43 Summit 2007 89 List of infrastructure PPP projects for the KKPPI (Bahasa) 30/5/07 5 C.66 90 Third draft of the Infrastructure Policy Package 2007 (Bahasa) 1/6/07 6 B.1 91 Update on the SIAP Policy Matrix (Infrastructure Working Group) 13/6/07 6 B.2 92 Comments on the draft TOR for the Indonesia Infrastructure Fund (Bahasa) 30/6/07 6 B.3 93 Comments on the IDPL policy matrix of 2 July 2007 2/7/07 6 B.5 94 Briefing note on the acceleration of infrastructure development for a coordination 6/7/07 6 B.6
meeting at the VP Office (Bahasa) 95 Presentation on PPP opportunities in the toll road sector for the Islamic Development 9/7/07 6 B.7 Bank 96 Report on the IDPL Workshop on 11-12 July 2007 13/7/07 6 B.8 97 Flow chart of land acquisition in accordance with BPN Regulation 3/07 13/7/07 6 B.9 98 Presentation on model projects for KKPPI Meeting XV (Bahasa) 16/7/07 6 B.10 99 Comments on the IDPL policy matrix of 13 July 2007 13/7/07 6 B.11 100 Policy note on the assessment of adequacy of legally permissible levels of support 19/7/07 6 B.12 available for infrastructure facilities 101 Guideline for risk sharing for bulk seller and unit seller infrastructure facilities 19/7/07 6 B.13
102 Presentation on gaps in the risk mitigation framework 23/7/07 6 B.14 13 Appendix 103 Draft paper and presentation on infrastructure development in support of the real estate 9/8/07 6 B.15 sector (Bahasa) 104 Comments on the IDPL policy matrix of 1 August 2007 1/8/07 6 B.16 105 Training materials for PPP socialization (Bahasa) 18/8/07 6 B.17 106 Presentation on the acceleration of toll road development (Bahasa) 21/8/07 6 B.18 107 Draft paper on priority actions to enable increased private sector participation in the 22/8/07 6 B.19 64 Indonesian road sector (for an ADB Institute workshop)
108 Briefing note on land acquisition undertaking (Bahasa) 30/8/07 6 B.20 109 TOR for a regional PDF forum 30/8/07 6 B.22 110 Comments on the draft IDPL Project Concept Document 30/8/07 6 B.23 111 Minutes of the meeting of 31 August 2007 on the PPP project pipeline 31/8/07 6 D.1 112 Presentation on the PPP policy framework 24/9/07 7 B.1 113 Minutes of the meeting of 26 October 2007 on public consultations for PPP projects 26/10/07 7 B.2 (Bahasa) 114 Draft TOR for workshop on public consultations for PPP projects (Bahasa) 26/10/07 7 B.3 115 Note on status of model PPP projects for KKPPI meeting 29/10/07 7 B.4 116 Minutes of the KKPPI meeting of 1 November 2007 (Bahasa) 1/11/07 7 B.5 117 Presentation on infrastructure financing for IRSA international seminar 3/11/07 7 B.6 118 Presentation materials on infrastructure provision and inclusive development for IRSA 3/11/07 7 B.7 international seminar 119 TOR for the procurement staff consultant for PDF, 12 November 2007 12/11/07 7 B.8 120 Presentation for Eurocham PPP Seminar 4/12/07 7 B.9 121 Opening remarks of the State Minister of BAPPENAS for Eurocham PPP Seminar 4/12/07 7 B.10 122 Presentation materials for workshop on public consultation guidelines for PPP projects 5/12/07 7 B.11
(Bahasa) 123 Note on PPP in infrastructure for Indonesia-Netherlands meeting 7 B.12 124 Presentation on Indonesian PPP system and policy direction 10/12/07 7 B.13 125 Presentation on government policy and support for PPP infrastructure projects (Bahasa) 17/12/07 7 B.14 126 Risk Sharing, Allocation, and Management Manual (not attached, distributed separately) 19/12/07 7
b. IRSDP Preparation and Implementation
Progress Attachment No. Title Date Report No. No.
1 MOU of the Fact-Finding Mission 1 D.1 13 Appendix 2 Summary of actions, outputs, and milestones in the policy matrix 15/2/06 1 D.2 3 Comparison of the policy matrix with the Infrastructure Policy Package 2/3/06 1 D.3 4 Draft Report and Recommendation of the President (not attached, distributed 1 separately) 5 Estimation of adjustment costs of the reforms 16/3/06 1 D.4 6 Talking points for the Management Review Meeting 20/3/06 1 D.5 65 7 Report to the KKPPI Secretary in BAPPENAS on the Appraisal Mission 3/5/06 1 D.6
8 Colored policy matrix indicating changes since the Fact-Finding Mission 11/5/06 1 D.7 9 Summary of the policy matrix 10/5/06 1 D.8 10 Sectoral and thematic coverage of the IRP 19/5/06 1 D.9 11 Draft response to the comments on the policy matrix from Director General of Post and 30/5/06 1 D.10 Telecommunications 12 Talking points for the Project Concept Note Meeting of the World Bank 2 D.1 13 IRP-related part of the BAPPENAS presentation to Parliament (DPR) on program loans 3/7/06 2 D.2 14 Draft letter to the line ministries clarifying IRP outputs/milestones 21/7/06 2 D.3 15 Tracking of the IRP policy matrix status 16/8/06 2 D.4 16 Letter to the Coordinating Minister for Economic Affairs, Minister of Finance, and 10/7/06 2 D.5 Minister for National Development Planning on model PPP projects 17 Post-appraisal revisions in the Report and Recommendation of the President for the IRP 2 (not attached) 18 Pending actions and outputs under Subprogram 1 of the IRP 12/7/06 2 D.6 19 Draft TA paper on Enhancing Private Sector Participation in Infrastructure Provision 2 D.7 20 Concept paper on the Infrastructure Project Development Facility 2 D.8 21 Issues paper for ADB’s Second Management Review Meeting 18/8/06 2 D.9
22 Updated policy matrix for the IRP 28/8/06 2 D.10 23 Policy matrix summary for the IRP 28/8/06 2 D.11 24 Note on PDF’s readiness 20/9/06 3 D.1 25 Final policy matrix 25/9/06 3 D.2 26 Letter to the Ministers on the model power projects 30/10/06 3 D.7 27 Final Report and Recommendation of the President) (not attached, distributed 3 separately) 28 List of outputs collected for the policy matrix 17/11/06 3 D.9 29 Response to an inquiry on Indonesia’s environmental impact assessments 23/11/06 3 D.10 30 Draft press release on the signing of the Loan Agreement 3 D.11
31 Draft MOU of the IRSDP Review Mission 5 B.44 13 Appendix 32 Revision and status of the IRSDP policy matrix for Subprograms 2 and 3 5 B.45 33 Updated policy matrix for the IRSDP 5 B.46 34 Draft letter to the Minister of Finance on the IRSDP implementation 5 C.15 35 Presentation for the IRSDP Steering Committee Meeting of 22 May 2007 (Bahasa) 5 C.56 36 Presentation on the IRSDP Inception and Review Mission 6 B.4 37 Note on the status of the IRSDP policy matrix (Bahasa) 6 B.21 66 38 Note on the status of the IRSDP 14/12/07 7 B.15
c. Non-compliant Projects
Progress Attachment No. Title Date Report No. No. 1 Analysis of the Ministry of Public Works’ request for government support for two toll road 22/6/06 2 C.2 projects 2 Back-to-office report on a meeting with BPJT on non-compliant toll road projects 4 B.13 3 Presentation on the draft Presidential Regulation on non-compliant PPP infrastructure 26/1/07 4 B.17 projects 4 Draft Perpres on non-compliant toll road projects 13/2/07 4 B.25 5 Database of non-compliant infrastructure projects 12/2/07 4 B.26 6 Database of non-compliant projects (Bahasa) 12/3/07 5 B.2 7 Presentation on draft Presidential Regulation on non-compliant toll road projects 5 B.9 (Bahasa)
8 Draft Presidential Regulation on non-compliant toll road projects (Bahasa) 5 B.15
d. Perpres 67/2005 Revision and OGM Formalization
Progress Attachment No. Title Date Report No. No. 1 Comments on the draft Operational Guidelines Manual for Presidential Regulation No. 1 67/06 (not attached) 2 Report on the meeting of 13 March 2007 on the revision of Government Regulation No. 5 B.3 6/06 on the Management of State/Regional-Owned Assets 3 Legal memorandum on the impact of Government Regulation No. 6/06 on the 4/5/07 5 B.27 Appendix 13 13 Appendix Management of State/Regional 4 Draft of revised Government Regulation No. 6/06 on the Management of State/Regional 5 B.28 5 TOR for the OGM workshop in Batam 15/6/07 6 B.24 6 Bahasa translation of the OGM (not attached) 2/7/07 6 7 Presentations for the OGM workshop in Batam 5/7/07 6 B.25
8 Draft Module 2(b) of the OGM on infrastructure risks and their allocation (not attached) 29/7/07 6 67 9 Draft revised Perpres 67/05 (Bahasa) 2/8/07 6 B.26 10 Comparison matrix of the original and draft revised Perpres 67/05 (Bahasa) 2/8/07 6 B.27
11 Opening presentation for the workshop on the Perpres 67/05 revision (Bahasa) 2/8/07 6 B.28 12 Presentation on the objectives and work plan for the Perpres 67/05 revision (Bahasa) 2/8/07 6 B.29 13 Minutes of the workshop on the Perpres 67/05 revision (Bahasa) 2/8/07 6 B.30 14 Report on workshop on Perpres 67/05 revision (Bahasa) 7/9/07 7 B.16 15 Presentation for Echelon I meeting on Perpres 67/05 revision (Bahasa) 27/9/07 7 B.17 16 Status report on Perpres 67/05 revision as of 27 September 2007 (Bahasa) 27/9/07 7 B.18 17 Minutes of the Echelon I meeting of 27 September 2007 on Perpres 67/05 revision 27/9/07 7 B.19 (Bahasa) 18 Presentation on summary of Perpres 67/05 revision (Bahasa) 27/9/07 7 B.20 19 Status report on Perpres 67/05 revision as of 31 October 2007 (Bahasa) 31/10/07 7 B.21 20 Presentation on Perpres 67/05 revision for the KKPPI meeting (Bahasa) 1/11/07 7 B.22 21 TOR for workshop on the harmonization of Perpres 67/05 revision (Bahasa) 12/12/07 7 B.23 22 Presentation on Perpres 67/05 revision and its harmonization with PP 6/07 and PP 7 B.24 50/07 (Bahasa) 23 Draft revised Perpres 67/05 (Bahasa) 14/12/07 7 B.25 24 Presentation on Perpres 67/05 revision and its harmonization with PP 8/07 (Bahasa) 18/12/07 7 B.26 25 Status report on Perpres 67/05 revision as of 19 December 2007 (Bahasa) 19/12/07 7 B.27
e. Land Acquisition for Toll Road Projects
Progress Attachment No. Title Date Report No. No. 1 Presentation and minutes of meeting with toll road investors on land acquisition process 7 B.38 (Bahasa) 2 Presentation for Echelon 1 meeting on land acquisition for toll road projects (Bahasa) 9/11/07 7 B.39 3 Presentation for working group meeting on land acquisition for toll road projects 14/11/07 7 B.40 (Bahasa)
4 Budget simulation on land acquisition for toll road projects (Bahasa) 14/11/07 7 B.41 13 Appendix 5 Presentation for Echelon 1 meeting on land acquisition for toll road projects (Bahasa) 22/11/07 7 B.42 6 Presentation for meeting with the Office of Vice President on land acquisition for toll 24/11/07 7 B.43 road projects (Bahasa) 7 Draft presidential regulation on land capping for toll road projects (Bahasa) 4/12/07 7 B.44 8 Presentation on land acquisition for the Eurocham PPP seminar 4/12/07 7 B.45
9 Report on budget simulation and land acquisition process for toll road projects (Bahasa) 6/12/07 7 B.46 68 10 Presentation for KKPPI meeting on the acceleration of land acquisition for toll road 14/12/07 7 B.47 projects (Bahasa)
11 Presentation for KKPPI meeting on budget simulation and land acquisition process for 14/12/07 7 B.48 toll road projects (Bahasa) 12 Draft letters of MOF, CMEA, and MPW on the implementation of government support for 31/12/07 7 B.49 land acquisition for toll road projects
f. Capacity Building in Sector Ministries and Local Governments
Progress Attachment No. Title Date Report No. No. 1 Presentation on Presidential Regulation No. 67/06 for the Local Government Workshop 5/4/06 1 B.2 in Jakarta on 7 April 2006 2 Proposal for a training program for the Bandung and Sumedang PPP team 4 B.15 3 Training program for the PPP team for the Bandung and Sumedang water supply 4 B.24 projects 4 Presentation on feasibility analysis and risks in PPP Projects at Bank Rakyat Indonesia 12/4/07 5 B.18 5 PPP presentation at the LPPI Project Preparation Workshop (Bahasa) 25/4/07 5 B.21
6 Presentation to RMU on risk management and project finance spreadsheet application 5 B.42 7 Presentation on implementing the PPP concept in Indonesia in the railway sector 5 C.64 8 Presentation on PPP in water supply for the Surabaya PDAM (Bahasa) 5/6/07 6 B.31 9 Presentation on implementation of the PPP concept in the transport sector 13/6/07 6 B.32 10 Presentation on PPP at the local government level in Kabupaten Klungkung (Bahasa) 22/6/07 6 B.33 11 Report on the PPP Directorate’s visit to Kabupaten Klungkung (Bahasa) 25/6/07 6 B.34 12 Minutes of the meeting of 26 July 2007 with MOT’s Secretary General on PPP project 27/7/07 6 B.35 development 13 Minutes of the meeting of 30 July 2007 with the Directorate General of Air 30/7/07 6 B.36 Transportation on PPP project development
14 Presentation of 31 July 2007 in MPW on PPP project preparation (Bahasa) 31/7/07 6 B.37 13 Appendix 15 Minutes of the meeting of 1 August 2007 with MPW’s Strategic Planning Bureau on PPP 1/8/07 6 B.38 project preparation 16 Presentation on unsolicited PPP proposals in the transport sectors (Bahasa) 14/8/07 6 B.39 17 Presentation on PPP project preparation in the transport sector (Bahasa) 1/8/07 6 D.21 18 Presentation on PPP project selection and prioritization in the transport sector (Bahasa) 1/8/07 6 D.22
19 TOR for bid evaluation workshop for the Tangerang water supply project 10/10/07 7 B.28 69 20 Presentation on PPP project cycle and procurement for the bid evaluation workshop for 31/10/07 7 B.29 the Tangerang water supply project (Bahasa)
21 Presentation on contract negotiations for the bid evaluation workshop for the Tangerang 7 B.30 water supply project (Bahasa) 22 Presentation on legal and institutional bid evaluation for the bid evaluation workshop for 31/10/07 7 B.31 the Tangerang water supply project (Bahasa) 23 Presentation of legal and contractual aspects of PPP transactions for Kabupaten 3/11/07 7 B.32 Klungkung workshop (Bahasa) 24 Training modules for risk management for infrastructure PPP projects 1/12/07 7 B.33 25 Presentation for risk management workshop on PPP projects (Bahasa) 3/12/07 7 B.34 26 Presentation on PPP fundamentals and applications 12/12/07 7 B.35 27 Presentation on project finance and risk management in PPP projects 12/12/07 7 B.36 28 Presentation on private sector participation framework in Indonesia 12/12/07 7 B.37
3. Task 2: Public Service Obligations
Progress Attachment No. Title Date Report No. No. 1 TOR for the PSO consultants 22/6/07 6 A.2
2 Presentation for the PSO confirmation meeting 30/11/07 7 C.1 3 Presentation for the PSO workshop 11/12/07 7 C.2 4 Progress report on Task 2: PSO Framework 15/12/07 7 C.3 5 Final report on the PSO Policy and Roadmap (not attached, distributed separately) 27/12/07 7
4. Task 3: Sector Regulation
Progress Attachment No. Title Date Report No. No. 1 Task 3 Progress Report (not attached) 13/8/07 6
2 Presentation materials for the confirmation meeting on 28 August 2007 on the review of 28/8/07 6 13 Appendix infrastructure regulation in Indonesia (not attached, distributed separately) 3 Presentation materials for the workshop of 4 September 2007 on the review of 4/9/07 6 C.1 infrastructure regulation 4 Discussion materials for the workshop of 4 September 2007 on the review of 4/9/07 6 C.2 infrastructure regulation (Bahasa)
5 Final report on the review of infrastructure sector regulation (not attached, distributed 7 70 separately)
5. Task 4: Project Screening and Preparation
a. Power Sector
Progress Attachment No. Title Date Report No. No. 1 Presentation on PLN’s IPP Partnership Program 8/1/07 4 B.10 2 Minutes of the meeting of 17 January 2007 on the model IPP projects 17/1/07 4 C.7 3 Clarifications sought on the IFC offer for the model IPP projects 30/1/07 4 C.9 4 Minutes of the meeting of 7 February 2007 on the model IPP projects 9/2/07 4 C.13 5 Minutes of the meeting of 16 February 2007 on the model IPP projects 16/2/07 4 C.18 6 Memorandum on procurement and financing issues related to the IFC offer for the 21/2/07 4 C.19 model IPP projects 7 Examples of IPP projects treated as PPPs 4 C.23 8 Revised TOR and time schedule for the Central Java model IPP project 28/2/07 4 C.26 9 Minutes of the meeting of 1 March 2007 on the model power projects 1/3/07 5 C.4
10 Note to PLN on the model power projects 2/3/07 5 C.5 11 Report on the meeting of 5 March 2007 on coordination of the IPP and crash programs 5/3/07 5 C.6 12 Presentation on financing options for the advisory services for the Central Java power 5 C.7 project (Bahasa) 13 Database on private power projects (Bahasa) 13/7/07 6 D.2 14 Minutes of the kick-off meeting of 1 August 2007 on the Pasuruan gas supply study 9/8/07 6 D.3 15 Draft request for meeting with potential gas suppliers on the Pasuruan gas supply study, 10/8/07 6 D.4 (English/Bahasa) 16 Draft letter of the BAPPENAS Deputy for Infrastructure and Facility to PLN regarding the 10/8/07 6 D.5 status of the Central Java model power project (Bahasa)
17 Note on the interim meeting of 5 September 2007 on the Pasuruan gas supply study 5/9/07 7 D.1 13 Appendix 18 Note on the final meeting of 27 September 2007 on the Pasuruan gas supply study 27/9/07 7 D.2 19 Note on the confirmation meeting of 4 October 2007 on the Pasuruan gas supply study 4/10/07 7 D.3 20 Final report on the Pasuruan gas supply study (not attached, distributed separately) 2/11/07 7 21 Draft letter of the KKPPI Secretary II to PLN regarding the Pasuruan gas supply study 8/11/07 7 D.4 (Bahasa)
71
b. Toll Road Projects
Progress Attachment No. Title Date Report No. No. 1 Draft response to MPW’s letter of 10 October 2006 on toll road projects 24/1/07 4 B.7 2 Presentation on the Trans-Java Toll Road Network 28/1/07 4 B.19 3 Presentation on the assessment of the Government support for the JORR II toll road 14/2/07 4 B.22 projects 4 Review of toll road projects 4 C.1 5 Minutes of the meeting of 3 April 2007 with the Director of Transportation, BAPPENAS, 3/4/07 5 C.27 regarding government support for the Solo 6 Minutes of the meeting of 5 April 2007 with the Directorate General of Highways 5/4/07 5 C.28 regarding government support for the Solo 7 Minutes of the KKPPI Secretariat meeting of 16 April 2007 on government support for 16/4/07 5 C.33 the Solo-Kertosono toll road project (Bahasa) 8 Legal review of the Solo-Kertosono toll road project (Bahasa) 3/5/07 5 C.42 9 Preliminary assessment of the Pasir Koja-Soreang toll road project (Bahasa) 5 C.46
10 Assessment report on the Solo-Kertosono toll road project, 11 May 2007 11/5/07 5 C.52 (English/Bahasa) 11 Draft memorandum to the KKPPI Secretary II, Chairman of BAPPENAS, and Chairman 5 C.53 of KKPPI on the assessment of the Solo 12 Briefing note on the Ujung Berung-Gede Bage-Majalaya toll road project (Bahasa) 5 C.59 13 Note on toll road projects 18/6/07 6 D.6 14 Draft memorandum from the Director of PPP Development to the BAPPENAS Deputy 22/8/07 6 D.7 for Infrastructure and Facility on government support for the Surabaya-Mojokerto toll road (Bahasa) 15 Status of toll road development as of 22 August 2007 (Bahasa) (not attached) 30/8/07 6
16 Draft TOR for toll road market sounding 6 D.8 13 Appendix 17 Presentation on market sounding for the Batch IV toll road projects 11/9/07 7 D.5 18 TOR for market analyst for market sounding for the Batch IV toll road projects 25/9/07 7 D.6 19 TOR for communications specialist for market sounding for the Batch IV toll road 25/9/07 7 D.7 projects 20 Memorandum to BAPPENAS Deputy VI on market sounding for the Batch IV toll road 25/9/07 7 D.8
projects (Bahasa) 72 21 Note on the meeting of 15 October 2007 with BPJT and DG Highways on the Batch IV 27/9/07 7 D.9 toll road projects
22 Presentation on West Java toll road projects (Bahasa) 30/9/07 7 D.10 23 Draft letter to ADB on the proposed technical advisory services for BPJT 3/10/07 7 D.11 24 Preliminary report on the Batch IV toll road projects 8/10/07 7 D.12 25 TOR for a study of the social and economic impact of toll road development 26/10/07 7 D.13 26 Draft letter to BPJT Chairman on the Batch IV toll road project tendering (Bahasa) 23/11/07 7 D.14 27 Memorandum on the proposed technical advisory services for BPJT 23/11/07 7 D.15 28 Draft letter to ADB on market sounding for the Batch IV toll road projects 23/11/07 7 D.16 29 TOR for the technical advisory services for BPJT 23/11/07 7 D.17 30 Presentation on legal aspect analysis for the Jakarta urban toll road projects (Bahasa) 17/12/07 7 D.18 31 Memorandum on the preparation of market sounding for the Batch IV toll road projects 17/12/07 7 D.19 (Bahasa) 32 Memorandum on government support for the Batch IV toll road projects (Bahasa) 28/12/07 7 D.20
c. Transport Projects
Progress Attachment No. Title Date Report No. No.
1 Briefing note on the Manggarai-Soekarno Hatta Airport Rail Link Project 18/9/06 3 C.4 2 Minutes of the meeting of 25 January 2007on the Teluk Lamong port project 25/1/07 4 C.8 3 Concept for the Teluk Lamong port project 4 C.11 4 Key issues on the Teluk Lamong port project 4 C.16 5 Minutes of the meeting of 14 February on the model transport projects 14/2/07 4 C.17 6 Minutes of the meeting of 23 February 2007 with MOT on the model transport projects 23/2/07 4 C.21 7 Minutes of the meeting of 26 February 2007 with the World Bank on the transport sector 26/2/07 4 C.22 8 Report on a PPP presentation in MOT 27/2/07 4 C.25 9 Readiness of PPP projects in the railway sector 5 B.41 10 Follow-up recommendations on the Margagiri-Ketapang ferry project (Bahasa) 9/3/07 5 C.9
11 Report on presentation to the Directorate General of Air Transportation on progress with 13/3/07 5 C.12 13 Appendix airport PPP projects 12 Minutes of the meeting of 14 March 2007 with the Head of MOT’s Planning Bureau 14/3/07 5 C.13 13 Assessment of the IFC proposal for the advisory services for transportation PPP 15/3/07 5 C.14 projects (Bahasa) 14 Minutes of the meeting of 16 March 2007 with the Directorate General of Air 16/3/07 5 C.16 Transportation on airport PPP projects 73 15 Minutes of the meeting of 16 March 2007 with the Directorate General of Sea 16/3/07 5 C.17
Transportation on seaport PPP projects 16 Minutes of the meeting of 16 March 2007 with the Directorate General of Land 16/3/07 5 C.18 Transportation on the Margagiri-Ketapang ferry project 17 Briefing note on financing resources for the preparation of the Margagiri-Ketapang ferry 17/3/07 5 C.19 and Teluk Lamong port projects (Bahasa) 18 Briefing note on the Margagiri-Ketapang ferry project (Bahasa) 30/3/07 5 C.21 19 Background information and comments on the Margagiri-Ketapang ferry project 5 C.22 20 Presentation on the Margagiri-Ketapang ferry project 30/3/07 5 C.23 21 Presentation on financing options for the advisory services for the Margagiri-Ketapang 5 C.24 ferry project (Bahasa) 22 Minutes of the meeting of 30 March 2007 on the Margagiri-Ketapang ferry project 30/3/07 5 C.25 23 Briefing note on the Teluk Lamong port project (Bahasa) 9/4/07 5 C.29 24 Minutes of the meeting of 9 April 2007 on the Teluk Lamong port project 9/4/07 5 C.30 25 Minutes of the meeting of 12 April 2007 with the Directorate General of Land 12/4/07 5 C.32 Transportation on the progress of the Margagiri-Ketapang ferry project 26 Minutes of the meeting of 18 April 2007 with the Directorate General of Land 18/4/07 5 C.34 Transportation on the Margagiri-Ketapang ferry project
27 Discussion note on the Teluk Lamong port project 5 C.35 28 Minutes of the meeting of 20 April 2007 with Pelindo III on the Teluk Lamong port 5 C.37 project 29 Minutes of the meeting of 25 April 2007 with the Directorate General of Land 25/4/07 5 C.39 Transportation on the Margagiri-Ketapang ferry project, 30 Minutes of the meeting of 26 April 2007 with the Directorate General of Railways on the 26/4/07 5 C.40 PPP modality 31 Legal opinion on the Teluk Lamong expansion under the Authorization Agreement 2/5/07 5 C.41 between PT Terminal Peti Kemas Surabaya and Pelindo III 32 Minutes of the meeting of 8 May 2007 with MOT’s Planning Bureau on transportation 8/5/07 5 C.44
PPP projects 13 Appendix 33 Background information and TOR for the pre-feasibility study for the Margagiri-Ketapang 5 C.46 ferry project 34 Draft TOR for the pre-feasibility study of the Teluk Lamong port project 5 C.50 35 Draft letter to the State Minister of State-Owned Enterprises regarding the development 5 C.51 of the Teluk Lamong port project (Bahasa)
36 Minutes of the meeting of 14 May 2007 with the Advisor to the Minister of Transportation 14/5/07 5 C.54 74 on transportation PPP projects 37 Draft letter to the Secretary General of the Ministry of Transportation regarding the 5 C.57
preparation of the Margagiri-Ketapang ferry project (Bahasa) 38 Minutes of the meeting of 22 May 2007 with the Advisor to the Minister of Transportation 22/5/07 5 C.58 on transportation PPP projects, 39 Presentation on the development of the Teluk Lamong port project 5 C.60 40 Briefing notes on the development of the Teluk Lamong port project 23/5/07 5 C.61 41 Minutes of the meeting of 23 May 2007 on the Teluk Lamong port project (Bahasa) 23/5/07 5 C.62 42 Minutes of the meeting of 29 May 2007 with the Directorate General of Sea 29/5/07 5 C.65 Transportation on transportation PPP projects 43 Minutes of the meeting of 4 June 2007 with the Directorate General of Sea 4/6/07 6 D.9 Transportation on PPP project development and the Teluk Lamong port project 44 Minutes of the meeting of 7 June 2007 with MOT’s Expert Staff on PPP projects 7/6/07 6 D.10 45 Briefing note on the Margagiri-Ketapang ferry project (Bahasa) 13/6/07 6 D.11 46 Briefing note on the status of the Teluk Lamong port project 25/6/07 6 D.13 47 Suggested actions for the Margagiri-Ketapang model project 27/6/07 6 D.14 48 Discussion paper for the Teluk Lamong port project (Bahasa) 29/6/07 6 D.15 49 Draft invitation to the meeting on the Teluk Lamong port project (Bahasa) 16/7/07 6 D.16 50 Minutes of the meeting of 19 July 2007 with the Directorate of Transportation in 19/7/07 6 D.17
BAPPENAS on the PPP project pipeline, 51 Minutes of the meeting of 20 July 2007 with PT TPS Surabaya on the Surabaya Port 20/7/07 6 D.18 development 52 Minutes of the meeting of 20 July 2007 with Pelindo III and PT Surveyor Indonesia on 20/7/07 6 D.19 the Teluk Lamong port project 53 Matrix of gaps in the preparation of the Teluk Lamong port project 20/7/07 6 D.20 54 Minutes of the meeting of 1 August 2007 with MOT’s Planning Bureau on the PPP 1/8/07 6 D.23 project pipeline 55 Briefing note on the status of the Teluk Lamong port project and comments on the 1/8/07 6 D.24 revised TOR
56 Minutes of the meeting of 14 August 2007 with MOT staff on PPP project selection 14/8/07 6 D.25 13 Appendix criteria 57 Draft final report of Robert Brown, Senior Transport PPP Specialist 17/8/07 6 B.40 58 Draft memorandum on the status of the model projects in the transport sector (Bahasa) 31/8/3007 6 D.26 59 Memorandum on status of the model PPP projects in the transportation sectors 31/12/07 7 D.21 60 Project brief on the Jakarta-Soekarno Hatta airport rail link 19/9/07 7 D.22
61 Presentation on infrastructure provision in the transportation sectors (Bahasa) 20/9/07 7 D.23 75 62 Note on PPP in railway projects (Bahasa) 3/10/07 7 D.24 63 Presentation on railway sector revitalization (Bahasa) 5/10/07 7 D.25
64 Presentation on PPP in the railway sector (Bahasa) 5/10/07 7 D.26 65 Note on the Teluk Lamong model PPP project (Bahasa) 1/11/07 7 D.27 66 Review matrix on readiness and PDF funding of West Java projects 8/11/07 7 D.28 67 Note on the Balikpapan port project 14/11/07 7 D.29 68 Note on the status of PPP project pipeline in the transportation sectors 1/12/07 7 D.30 69 Note on PPP in transportation projects (Bahasa) 15/12/07 7 D.31
d. Water Supply Projects
Progress Attachment No. Title Date Report No. No. 1 Support activities for the Bandung and Sumedang water supply projects 4 B.14 2 Checklist for feasibility studies for water supply projects 4 C.2 3 Minutes of the meeting of 8 January 2007 on the Bandung-Sumedang water supply 8/1/07 4 C.3 project proposed by Ami Water/United Engineers 4 Comments on the Ami Water/United Engineers’ feasibility study 4 C.4 5 Recommendation on the Ami Water/United Engineers’ unsolicited proposal 24/1/07 4 C.5
6 Minutes of the meetings of 8, 9, 10, 15 and 23 January 2007 on the Bandung, 8/1/07 4 C.6 Sumedang and Tangerang water supply projects 7 Chronology of the Sumedang water supply project 4 C.12 8 Request for support for the Bandung and Sumedang water supply project preparation 12/2/07 4 C.14 9 Draft BAPPENAS letter on support for the Bandung and Sumedang water supply project 13/2/07 4 C.15 preparation 10 Position paper on water supply projects 4 C.24 11 Note on Castalia’s presentation on the Sumedang design-build-lease water supply and 15/2/07 4 C.27 sanitation project 12 Minutes of the meeting of 27 February 2007 on the Bandung water supply project 27/2/07 4 C.28
13 Report on the meeting of 26 February 2007 on the Tangerang water supply project 26/2/07 5 C.1 13 Appendix (English/Bahasa) 14 Report on the meeting of 27 February 2007 on the Tangerang water supply project 27/2/07 5 C.2 (English/Bahasa) 15 Report on the meeting of 28 February 2007 on the Tangerang water supply project 28/2/07 5 C.3 (English/Bahasa)
16 Risk allocation matrix for the Bandung water supply project 5 C26 76 17 Presentation on the preliminary assessment of the Bandung water supply project 5 C.31 (Bahasa)
18 Project summary for the Sumedang water supply design-build-lease (DBL) scheme 5 C.36 (Bahasa) 19 Draft letter to the Deputy for Infrastructure and Regional Development, CMEA regarding 23/4/07 5 C.38 preparation of the Sumedang water supply project (Bahasa) 20 Update on the water supply PPP projects 8/5/07 5 C.45 21 Update on the water supply PPP projects (Bahasa) 16/5/07 5 C.55 22 Memorandum on the Tangerang water supply project (Bahasa) 5 C.67 23 Policy note on the Kabupaten Tangerang water concession 5 C.69 24 TOR for a workshop on the bid evaluation for the Tangerang water supply project 1/8/07 6 D.28 25 Presentation at a MPW workshop on investment alternatives for water supply through 1/8/07 6 D.30 non-government funding (Bahasa) 26 Discussion materials on issues affecting risk in PPP water supply projects 17/9/07 7 D.32 27 Technical report on the Bandung Water Supply Project (not attached, distributed 31/10/07 7 separately) 28 Presentation on PPP in Indonesia’s water sector 9/11/07 7 D.33 29 Presentation on water supply reforms in Indonesia (Bahasa) 20/11/07 7 D.34
e. Telecommunication Projects
Progress Attachment No. Title Date Report No. No. 1 Terms of reference (TOR) for Telecommunications Specialists 6/11/06 3 A.1 2 Comments on a telecommunications feasibility report by Nathan & Associates 4 B.8 3 Update on the Palapa Ring model project 4 C.10 4 Minutes of the meeting of 22 February 2007 on the Palapa Ring model project 22/2/07 4 C.20 5 Update on the model PPP telecommunications project 7 D.35
f. Local Government Projects 13 Appendix
Progress Attachment No. Title Date Report No. No. 1 Comments on the Memorandums of Understanding for three WTE projects in Jakarta 15/3/06 1 C.3 2 Draft letter to the Municipal Government of Jakarta regarding the preparation and 6/4/06 1 C.4
implementation of the WTE projects 77 3 Draft letter to private investors requesting the submission of a project proposal package 24/4/06 1 C.5 for the WTE projects
4 Draft project schedule and terms of reference for a full feasibility study, tendering 1 C.6 proposal, and cooperation agreement for the WTE projects 5 Draft letter to the Regional Government of Gresik, East Java, regarding the 7/4/06 1 C.7 implementation of Presidential Regulation No. 67/05 in the development of regional infrastructure 6 Draft letter to Tirta Kerta Raharja, the water utility in Tangerang, regarding the 17/5/06 1 C.8 implementation of Presidential Regulation No. 67/05 in the development of water supply infrastructure 7 Review of and recommendations on a municipal waste management project in 1 C.9 Makassar 8 Minutes of the meeting of 27 March 2007 with the DKI Jakarta Government on the solid 27/3/07 5 B.7 waste management project (Bahasa) 9 Draft response to the DKI Jakarta Government on the solid waste management project 5 B.8 (Bahasa) 10 Follow-up recommendations on the proposed Kalijati air cargo terminal project (Bahasa) 9/3/07 5 C.8 11 Briefing note on the Jakarta monorail project (Bahasa) 9/3/07 5 C.10 12 Briefing note on the solid waste management project of DKI Jakarta 9/3/07 5 C.11
13 Briefing note for the proposed Kalijati air cargo terminal project (Bahasa) 5 C.20 14 Comments on the letter and documents from the Mayor of Makassar and Pelindo IV 4/5/07 5 C.43 regarding the development of the Makassar port 15 Report on the meeting of 10 May 2007 on the Batu Ampar port project in Batam 5 C.48 16 Draft letter to the Mayor of Makassar regarding the development of the Makassar port 5 C.49 (Bahasa) 17 Presentation of the proposed Kalijati air cargo terminal project (Bahasa) 5 C..63 18 Presentation on the proposal for technical assistance to DKI Jakarta for the solid waste 23/3/07 5 C.68 management project (Bahasa) 19 Draft response on the unsolicited proposal for the Jabotabek railway improvement 6/6/07 6 D.12
project 13 Appendix 20 Note on the Karang Pilang III water treatment project (Bahasa) 6/6/07 6 D.27 21 Report on the feasibility of the Tukad Unda bulk water treatment project for PDF 14/8/07 6 D.29 assistance (Bahasa) 22 Notes on the proposed water supply project in Kabupaten Sleman (Bahasa) 30/8/07 6 D.31 23 Minutes of the meeting of 18 June 2007 on the proposed West Java PPP projects 18/6/07 6 D.32
(Bahasa) 78 24 Presentation on the acceleration of West Java toll road projects (Bahasa) 28/6/07 6 D.33
25 Minutes of the meeting of 4 July 2007 with the Directorate General of Railway on the 4/7/07 6 D.34 Bandung urban railway, 26 Draft memorandum on loan financing for the Bandung intra-urban toll road (Bahasa) 20/7/07 6 D.35 27 Minutes of the meeting of 1 August 2007 with the Directorate of Transportation in 1/8/07 6 D.36 BAPPENAS on the proposed West Java airport (Bahasa) 28 Minutes of the meeting of 3 August 2007 with BAPPEDA on the proposed West Java 3/8/07 6 D.37 airport 29 Presentation on the coordination and clarification of the proposed West Java airport 3/8/07 6 D.38 (Bahasa) 30 Briefing note on the proposed West Java airport in Majalengka 16/8/07 6 D.39 31 Follow-up recommendations on the proposed West Java airport in Majalengka (Bahasa) 20/8/07 6 D.40 32 Follow-up recommendations on the Bandung urban railway (Bahasa) 24/8/07 6 D.41 33 Minutes of the meeting of 3 September 2007 on the Bandung bus terminal project 3/9/07 7 D.36 (Bahasa) 34 Presentation materials for meeting on the Kota Bandung bulk water supply project 3/9/07 7 D.37 (Bahasa) 35 Review of request for PDF assistance for the Kota Bandung bulk water supply project 17/9/07 7 D.38
(Bahasa) 36 Memorandum on apartment and housing PPP development in Bandung (Bahasa) 25/9/07 7 D.39 37 Discussion materials for meeting on West Java infrastructure projects (Bahasa) 28/09/07 7 D.40 38 Note on the meeting on the PPP projects proposed by the Sleman local government 28/9/07 7 D.41 39 Review of the proposed Sleman water supply project 4/10/07 7 D.42 40 TOR for PDF assistance for the Gedebage integrated terminal project 7 D.43 41 TOR for project preparation training for local consulting firms 4/10/07 7 D.44 42 Press release for PPP training for Kabupaten Klungkung (Bahasa) 2/11/07 7 D.45 43 Report on PPP training for Kabupaten Klungkung 5/11/07 7 D.46 44 Note for the meeting on the preparation of the West Java international airport project 8/11/07 7 D.47
(Bahasa) 13 Appendix 45 TOR for transaction advisory services for the Tukad Unda bulk water supply project 10/11/07 7 D.48 46 TOR for project preparation and stakeholder consultation services for the Tukad Unda 10/11/07 7 D.49 bulk water supply project 47 TOR for pre-feasibility study and transaction advisory services for the Kota Bandung 15/11/07 7 D.50 bulk water supply project
48 Memorandum on PPP project preparation for Kota Bandung (Bahasa) 21/11/07 7 D.51 79 49 Discussion materials for meeting on the Cimenteng water treatment project (Bahasa) 21/11/07 7 D.52
50 Note for the meeting on the preparation of the West Java international airport project 26/11/07 7 D.53 (Bahasa) 51 Presentation on the integration of transportation system in Jakarta and the neighboring 27/11/07 7 D.54 regions (Bahasa) 52 Review of project readiness of the West Java international airport (Bahasa) 5/12/07 7 D.55 53 TOR for financial specialist for the Bandung waste-to-energy project 15/12/07 7 D.56 54 TOR for legal specialist for the Bandung waste-to-energy project 15/12/07 7 D.57 55 List of questions on the six urban toll road projects proposed by the Provincial 18/12/07 7 D.58 Government of DKI Jakarta (Bahasa)
6. Task 5: Preparation of the IICE 2006
Progress Attachment No. Title Date Report No. No. 1 Draft presentation to the Organizing Committee of the IICE 2006 on the proposed PPP 26/7/06 2 C.10 model projects 2 Draft CMEA/KKPPI invitation letters to ADB, WB, and JBIC for the IICE 2006 31/7/06 2 C.11
3 Draft presentation for a Cabinet meeting on proposed model projects for the IICE 2006 22/8/06 2 C.13 4 Candidates for the preparation of the toll road information memoranda 3 C.2 5 Draft speeches for the Government at the IICE 2006 20/10/06 3 C.11 6 Summary of discussions at two IICE 2006 sessions 2/11/06 3 C.12 7 Information memorandum for the Central Java Coal-Fired Power Project 10/10/06 3 D.3 8 Information memorandum for the Pasuruan Combined Cycle Power Project 10/10/06 3 D.4 9 Information memorandum for the Palapa Ring National Fiber Optic Backbone Network 13/10/06 3 D.5 Project 10 Medium-term infrastructure reform agenda for the IICE 2006 17/10/06 3 D.6 11 Information memorandum for four coal-fired power projects outside Java 13/11/06 3 D.8
12 Proceedings of the IICE 2006 (not attached, distributed separately) 4 13 Appendix 13 Draft cover letter for the Proceedings of the IICE 2006 (Bahasa) 5/4/07 5 B.14
80
2008 No.PPP Activity PROGRAM FOR 2008 Resources Note
Jan Feb Mar A pr May Jun Jul Aug Sep Oct Nov Dec A. Policies, Regulations, and Institutional Framework BAPPENAS, SID, In coordination with KKPPI 1 Revision of Perpres 67/2005 TAS and sector ministries Harmonization with PP 6/2006, PP 50/2006, and PP 8/2007 Completion of the draft revised Perpres Urgent next step: Presentation to KKPPI presentation to KKPPI Finalization of the draft revised Perpres and final approval by KKPPI BAPPENAS , SID , In coor di na ti on w ith KKPPI Submission to the State Secretariat and signing by the President TAS and sector ministries Socialization of the revised Perpres toFinalization stakeholders of the OGM Attachment of the OGM to the revised Perpres 67/2005 2 Formalization of the Operational Guidelines Manual (OGM) Socialization of the OGM to stakeholders BAPPENAS, PPITA, 3 Establishment and operationalization of the PPP Central Unit (P3CU) TAS In coordination with CMEA Execution of the P3CU study BAPPENAS Regulation on the establishment of the P3CU Staffing and operationalization of the P3CU BAPPENAS, SID, 4 Guidelines for Public Consultations for PPP Projects TAS Drafting of guidelines for the public consultation process Consultation with stakeholders Finalization of the public consultation guidelines and incorporation into the OGM BAPPENAS, MSOE, In compliance with Inpres
5 Policy on Public Service Obligations (PSO) in Infrastructure Provision SID, TAS 6/2007 and IRSDP Finalization of the SID Task 2 report on the PSO policy and roadmap Urgent next step: Socialization to stakeholders presentation to KKPPI Implementation of the PSO policy and roadmap BAPPENAS, SID, In compliance with Inpres 6 Full Operationalization of the Project Development Facility (PDF) TAS 6/2007 and IRSDP Recruitment of consultants for the study on long-term PDF policy Preparation of the PDF policy paper Recruitment of technical advisory and project administration consultants (TAS and PAS) Operationalization of the PDF National and regional forums for the socialization of PPP and PDF BAPPENAS, SID, 7 Roadmap for Economic Regulation in Infrastructure TAS Consultation with stakeholders to adopt recommendations of the SID Task 3 report Development of roadmap for the establishment of economic regulation in infrastructure BAPPENAS, SID, TAS 8 Monitoring and implementation of IRSDP (Program Loans, PDF and TA 4872) 14 Appendix Review mission Conducted jointly by ADB Appraisal mission for Subprogram 2 and JBIC Loan negotiations for Subprogram 2 Approval by the ADB Board BAPPENAS, SID, 9 Monitoring and implementation of IDPL TAS Review mission Apraisal mission for IDPL 2 To be confirmed with WB Loan negotiations for IDPL 2 81 Approval by the World Bank Board BAPPENAS, CMEA, Confirmation letter to be 10 Establishment of Land Acquisition Framework for Toll Road Projects MPW, MOF, SID issued by MOF Review of land capping alternatives KKPPI decision on the provision of government support for land capping Negotiation and amendment of existing toll road concession agreements by BPJT Provision of government support for land acquisition under Revised APBN 2008 BAPPENAS,SID,BPJ 11 Legal and Financial Advisory Support for BPJT T, TAS,PAS Review and approval of TOR and budget by ADB Urgent next step: Recruitment of the legal and financial advisors approval by ADB Implementation of the advisory services BAPPENAS,SID, 12 Establishment of Road Fund TAS,PAS Drafting of road fund policy paper Consultation with MOF and MPW, and finalization of the policy paper Led by MOF/MPW Issuance of MOF/MPW Regulation on the establishment of the road fund Operationalization and socialization of the road fund
2008 No. Activity Resources Note Jan Feb Mar A p r May Jun Jul Aug Sep Oct Nov Dec B. Model PPP Projects BAPPENAS, PLN, 1 Central Java Coal-Fired Power Plant SID, TAS Execution of the feasibility study by IFC Coordination with MEMR, MOF, and MSOE on land acquisition and government support Prequalification and bidding BAPPENAS, PLN, 2 Pasuruan Combined Cycle Power Plant TAS, PAS Discussions by PLN with potential gas suppliers Decision on the feasibility study and its funding Recruitment of consultants Execution of the feasibility study BAPPENAS, MPW, 3 Medan - Kualanamu Toll Road TAS, PAS Updating of the feasibility study by DG Highways Implementation of market sounding Confirmation of government support from MOF and local government Preparation of tender documents Recruitment of consultants for transaction advisory services Prequalification and bidding BAPPENAS, MPW, 4 Solo - Kertosono Toll Road Project TAS, PAS Decision on private partner selection (negotiation with the sole bidder or re-bidding) Urgent next step: Re-bidding by BPJT guidance by KKPPI Review of request for government support by MOF Approval of government support by MOF Negotiation and signing of concession agreement Project implementation BAPPENAS, MOT, 5 Teluk Lamong Seaport TAS, PAS Completion of the feasibility study by Pelindo III Review of project compliance with the revised Perpres 67/2005 MSOE approval to proceed with the project (on recommendation from KKPPI) Prequalification and bidding BAPPENAS, MOT, 6 Ketapang - Margagiri Ferry Terminal TAS, PAS Recruitment of consultants for project preparation and transaction execution under PDF Preparation of the feasibility study and tender documents Request for government support by MOT Review of the request for government support by KKPPI and MOF Approval of government support by MOF Prequalification and bidding BAPPENAS, MPW, 14 Appendix 7 Bandung Water Supply Project TAS, PAS Finalization of the pre-feasibility study Presentation to and approval by the local government Recruitment of consultants for transaction execution under PDF Preparation of tender documents Request for government support by the contracting agency Review of the request for government support by KKPPI and MOF Approval of government support by MOF
Prequalification and bidding 82 BAPPENAS, MPW, 8 Dumai Water Supply Project TAS, PAS Decision on project modality by the local government (PPP or EPC) To be confirmed by Recruitment of consultants for transaction execution under PDF BPP SPAM Review of the feasibility study and preparation of tender documents Request for government support by the contracting agency Review of the request for government support by KKPPI and MOF Approval of government support by MOF Prequalification and bidding BAPPENAS, MPW, 9 Tangerang Water Supply Project TAS, PAS Decision on private partner selection (negotiation with one of the two bidders or re-bidding) Urgent next step: Request for government support by the contracting agency guidance by KKPPI Review of the request for government support by KKPPI and MOF Approval of government support by MOF Re-bidding Negotiation and signing of concession agreement BAPPENAS, MCI, 10 Palapa Ring Telecommunications Project TAS Decision on project modality for the western region Project implementation in the western region Project implementation in the eastern region
2008 No. Activity Resources Note Jan Feb Mar A p r May Jun Jul Aug Sep Oct Nov Dec C. Pipeline PPP Projects C.1. National PPP Projects BAPPENAS, 1 Market sounding for Batch IV toll road projects SID,BPJT, DGH Updating of project data (traffic, investment cost, etc.) Review of the economic and financial viability of the 11 projects Drafting of TOR for market analyst and communications specialist Recruitment of the market analyst and communications specialist Determination of government support Coordination meeting of central and local governments on government support Drafting of information memorandum Market sounding event BAPPENAS, SID, 2 Balikpapan Seaport MOT, TAS, PAS Decision on funding for public sector component (port infrastructure) Updating of the feasibility study and preparation of tender documents Prequalification and bidding for public sector component (EPC contract) Construction of the public sector component Decision on project modality for the PPP component (port equipment and operation) Guidance by KKPPI Recruitment of consultants for transaction execution under PDF Prequalification and bidding for the PPP component BAPPENAS, SID, 3 South Sumatra Coal Railway Network MOT, TAS, PAS Identification of gaps in project preparation Decision on project modality by MOT Drafting of TOR for project preparation and transaction execution Recruitment of consultants for project preparation and transaction execution under PDF Preparation of the feasibility study and tender documents Request for government support by the contracting agency
C.2. Regional PPP Projects BAPPENAS, SID, 1 Bandung Integrated Terminal in Gede Bage TAS, PAS Finalization of project plan by the local government Formal request by the local government for PDF funding Drafting of TOR for project preparation and transaction execution Recruitment of consultants for project preparation and transaction execution under PDF Preparation of the feasibility study and tender documents BAPPENAS, MOT, 2 West Java International Airport in Kertajati SID, TAS, PAS Establishment of PPP Team and regulatory framework for the project Formal request by the local government for PDF funding Drafting of TOR for project preparation and transaction through PDF 14 Appendix Recruitment of consultants for project preparation and transaction execution under PDF Preparation of the feasibility study and tender documents BAPPENAS, SID, 3 Kota Bandung Bulk Water Supply TAS, PAS Establishment of PPP Team Socialization and capacity building Recruitment of consultants for project preparation and transaction execution under PDF Preparation of the feasibility study and tender documents Request for government support by the contracting agency If necessary 83 Review of the request for government support by KKPPI and MOF Approval of government support by MOF Prequalification and bidding BAPPENAS, SID, 4 Tukad Unda Bulk Water Supply TAS, PAS Recruitment of individual consultants for feasibility study Preparation of the feasibility study Recruitment of consultants for transaction execution under PDF Preparation of government support and tender documents Request for government support by the contracting agency Review of the request for government support by KKPPI and MOF Approval of government support by MOF Prequalification and bidding BAPPENAS, SID, 5 Greater Bandung Railway Refurbishment (planning and prioritization stage) TAS, MOT, LG Technical study of Cicalengka-Bandung-Padalarang railway improvement Review and consolidation of all mass transit public transportation plans and studies Development of integrated urban transport plan and project prioritization Identification of suitable PPP project BAPPENAS, 6 Bandung Municipal Waste Power Plant SID+P40 Review of financial model and draft concession agreement