PUBLIC PRIVATE PARTNERSHIPS Infrastructure Projects Plan in Indonesia 2012
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PUBLIC PRIVATE PARTNERSHIPS Infrastructure Projects Plan in Indonesia 2012 Jakarta, 2012 2 FOREWORD FROM THE MINISTER In May 2011, the Indonesian government launched a 15-year economic development master plan, MP3EI, on the establishment of six economic corridors in Indonesia. The successful implementation of MP3EI will transform Indonesia into one of the 10 major economies in the world by 2025. Implementation requires the participation of all stakeholders and will focus on tangible and measurable priorities. The MP3EI will be implemented in three phases: 2011-2015; 2016-2020; and 2021-2025. Infrastructure is expected to play a pivotal role in the development of the six economic corridors. The traditional approach of funding infrastructure from the state budget is not sustainable because of limited public inances. The alternative is Private Provision of Infrastructure (PPI). Hence, the reliance on PPI underpins the MP3EI. A signiicant number of infrastructure projects in the MP3EI is expected to be inanced through an appropriate Public-Private Partnership (PPP) scheme. To date, the Government has established a robust, competitive legal and regulatory framework for PPP –from procurement of the PPP concessionaire to the provision of government support and guarantees. The governing regulation on PPP is Presidential Regulation (Perpres) 67/2005, amended subsequently by Perpres 13/2010 and 56/2011. The Ministry of Finance is in the process of creating a more efective mechanism for viability gap funding. The ministerial decree for this has been drafted. For years, land availability has been a major bottleneck for infrastructure development. The new law on land acquisition (Law 2/2012) is designed to accelerate the land acquisition process for public infrastructure projects. The PPP Book aims to provide reliable information to prospective investors on projects in the PPP pipeline. Its true value lies in the accuracy of the information. Projects are categorized according to the stage of development they have reached. A PPP project must be market ready in the true sense of the word when it is categorized as “ready for ofer”. What this implies is that the basic conditions underlying its business case, such as land availability and government support (if applicable) are largely met or soon to be met. iii The current PPP Book is an update of the 2011 version, incorporating recent developments. To date, 12 projects have been tendered out. In this 2012 version, there are 3 projects ready for ofer, 26 projects under the category “priority” and 29 projects under “potential”. There are 9 new projects that are not in the 2011 PPP Book, of which 1 is classiied as “priority” and 8 as “potential”. A signiicant diference from the 2011 version is that the number of “potential” projects is reduced from 45 to 29 as a result of more rigorous screening. Jakarta, April 2012 Armida S. Alisjahbana State Minister of National Development Planning/ Chairperson of National Development Planning Agency iviv PLANNING DOCUMENT OF Medium Term Development Plan PUBLIC PRIVATE PARTNERSHIP IN INFRASTRUCURE PROVISION Annual Government Work Plan Public Private Partnership Criteria I. Potential Project a. Conformity with the national / regional mid term development plan and the infrastructure Potential Project sector’s strategic plant; b. Conformity of the project’s location with the Regional Spatial Planning; c. Linkage between the infrastructure sectors and the regional areas; P d. Cost recovery potential e. Preliminary Study P II. Priority Project P a. Included in PPP Potential Project Plan or proposed by contracting as unsolicited project; b. Based on Pre-Feasibility, the project is feasible B Priority Project from legal, technical, and inancial aspect; c. Risk identiication and allocation has been O identiied; O d. PPP mode has been deined; e. Government support has been identiied (for K marginal project). III. Ready for Ofer Project a. Bidding Document has been completed; Ready for Ofer Project b. PPP procurement team has been established and ready to operate; c. Procurement schedule has been deined; d. Government support has been approved (if required) Annual Government Work Plan Ministry / Agency Annual Work Plan and Budget PROCUREMENT OF PPP PROJECT v SUMMARY OF PUBLIC PRIVATE PARTNERSHIPS PROJECTS ALREADY TENDERED No. Project Title Brief Descripions Status as End of March 2012 1 Central Java Coal Fired Development of power plant in • The PPA has been signed in Power Plant Central Java approximately 2,000 October 2011. MW. 2 Umbulan Water Supply, East Development of bulk water supply • Request for Proposal (RfP) was Java system (4,000 Lps) and transmission issued to 5 qualiied bidders pipeline(106 km). on 12 March 2012. • Bidders meeing to discuss RfP has been conducted twice. • Government Support and Guarantee are being prepared. • Bid submission date is expect- ed by end of August 2012. 3 Puruk Cahu - Bangkuang Coal Development of a dedicated coal • 4 bidders have been qualiied. Railway transportation system in Central Kalimantan Province from Puruk Cahu • Issuance of RFP is envisaged to Bangkuang and eventually onwards for irst half of 2012. (either by rail or barging) to the Coal Port in Lupak Dalam. Technical assessment of a revised alignment is ongoing. 4 Bandar Lampung Water Development of bulk water and • RfQ has resulted in 10 poten- Supply, Lampung extracion raw water from Way ial bidders. Sekampung River; water treatment to achieve the required quality • Procurement commitee will standard; and bulk supply of 500 evaluate the RFQs and short- l/s processed water to the point of list 4 nominated bidders. bulk water supply connecion (via bulk water supply meter). • RfP expected early summer 2012. 5 Maros Regency Water Supply, Development of bulk water and • PQ has been implemented South Sulawesi provision of water supply ser- twice resuling in 2 qualiied vices to Regency of Maros. This bidders. project entails the development of an intake of 280 l/s, raw wa- • RfP is expected to be issued in ter transmission for 200 m, WTP mid July 2012. with a capacity of 250 l/s, service reservoir of 1,500 m3, primary • Contract award is expected in distribuion mains 9,7 km, reservoir Q1 2013. + booster pump, for distribuion to Hasanudin Airport and Industrial Area Moncongloe, with a capacity of 3,000 m3. 6 Kemayoran - Kampung Development of toll road in DKI Ja- • PQ has been implemented Melayu Toll Road karta from Kemayoran to Kampung twice resuling in one quali- Melayu (9.65 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. vivi 7 Sunter - Rawa Buaya - Development of toll road in DKI • PQ has been implemented Batu Ceper Toll Road Jakarta from Sunter to Batuceper twice resuling in one quali- (22.92 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. 8 Ulujami-Tanah Abang Toll Development of toll road in DKI Ja- • PQ has been implemented Road karta from Ulujami to Tanah Abang twice resuling in one quali- (8.27 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. 9 Pasar Minggu - Cassablanca Development of toll road in DKI • PQ has been implemented Toll Road Jakarta from Pasar Minggu to twice resuling in one quali- Cassablanca (9.56 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. 10 Sunter-Pulo Gebang - Development of toll road in DKI • PQ has been implemented Tambelang Toll Road Jakarta from Sunter to Tambelang twice resuling in one quali- (25.73 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. 11 Duri Pulo – Kampung Development of toll road in DKI • PQ has been implemented Melayu Toll Road Jakarta from Duri Pulo to Kampung twice resuling in one quali- Melayu (11.38 km) ied bidder. • Contract negoiaion enter- prise‘ s process between GCA and winning bidder. 12 Nusa Dua – Ngurah Rai – Development of toll road in Bali • The winning bidder is a con- Benoa Toll Road Province from Nusa Dua to Benoa sorium of seven State Owned (9.70 km) Enterprises (PT. Jasa Marga, PT. Pelindo III, PT. Angkasa Pura I, PT. Wijaya Karya, PT. Hutama Karya, PT. Adhi Karya, and PT. Pengembangan Pariwisata Bali) • SPV for this project is PT. Jasa- marga Bali Tol • This project started its con- strucion on December 21, 2011 vii SUMMARY OF PUBLIC PRIVATE PARTNERSHIPS INFRASTRUCTURE PROJECTS PLAN IN INDONESIA I. READY FOR OFFER PROJECTS No Sector/Sub-sector Quantity Project Cost (US$ Million) 1 Air Transportation 0 - 2 Land Transportation 0 - 3 Marine Transportation 1 36.00 4 Railways 0 - 5 Toll Road 1 628.00 6 Water Resources 0 - 7 Water Supply 0 - 8 Solid Waste and Sanitaion 1 100.00 9 Telecommunication 0 - 10 Power 0 - 11 Oil and Gas 0 - Total 3 764.00 II. PRIORITY PROJECTS No Sector/Sub-sector Quantity Project Cost (US$ Million) 1 Air Transportation 1 214.00 2 Land Transportation 0 - 3 Marine Transportation 0 - 4 Railways 0 - 5 Toll Road 13 32,519.53 6 Water Resources 0 - 7 Water Supply 5 590.67 8 Solid Waste and Sanitaion 3 150.00 9 Telecommunication 0 - 10 Power 4 4,716.50 11 Oil and Gas 0 - Total 26 38,190.70 III. POTENTIAL PROJECTS No Sector/Sub-sector Quantity Project Cost (US$ Million) 1 Air Transportation 3 1,140.00 2 Land Transportation 3 136.00 3 Marine Transportation 3 2,839.12 4 Railways 3 4,783.00 5 Toll Road 0 - 6 Water Resources 0 - 7 Water Supply 13 1,388.15 8 Solid Waste and Sanitaion 2 203.00 9 Telecommunication 0 - 10 Power 2 1,762.00 11 Oil and Gas 0 - Total 29