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11844362 01.Pdf NO. JAPAN INTERNATIONAL DIRECTORATE GENERAL OF HIGHWAYS COOPERATION AGENCY (JICA) MINISTRY OF PUBLIC WORKS THE STUDY ON PUBLIC-PRIVATE PARTNERSHIP SCHEME FOR TRANS JAVA TOLL ROAD IN THE REPUBLIC OF INDONESIA FINAL REPORT MAIN TEXT JANUARY 2007 SD JR 07-09 PREFACE In response to a request from the Government of the Republic of Indonesia, the Government of Japan decided to conduct “The Study on Public-Private Partnership (PPP) Scheme for Trans Java Toll Road in the Republic of Indonesia” and entrusted it to the Japan International Cooperation Agency (JICA). JICA selected and dispatched a Study Team headed by Dr. Hani Abdel-Halim of Katahira & Engineers International from April 2006 and January 2007. The team held discussions with the officials concerned of the Ministry of Public Works as well as other officials concerned, and conducted field surveys, data analysis and PPP financial scheme. Upon returning to Japan, the team prepared this final report to summarize the results of the study. I hope that this report will contribute to development in the Republic of Indonesia, and to the enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of the Republic of Indonesia for their close cooperation extended to the Study Team. January 2007, Kazuhisa MATSUOKA, Vice President Japan International Cooperation Agency Mr. Kazuhisa MATSUOKA, Vice President Japan International Cooperation Agency January 2007 Dear Sir, Letter of Transmittal We are pleased to submit herewith the Final Report of “The Study on Public-Private Partnership (PPP) Scheme for Trans Java Toll Road in the Republic of Indonesia”. The report compiles the results of the Study and includes the advices and suggestions of the authorities concerned of the Government of Japan and your agency as well as the comments made by the Ministry of Public Works and other authorities concerned in the Republic of Indonesia. The report includes review of previous feasibility study on the study road, and analyses the present and future road network conditions and demand of transport in Java Island. Revised cost estimate and transport demand are applied for the economic evaluation and financial analysis of six established PPP options. An optimum PPP scheme is recommended based on a comprehensive evaluation and assessment process that takes into consideration the pros and cons of each option and the minimum financial requirements by the Government of Indonesia. In addition, bidding guidelines and implementation plan are included for the smooth and on-schedule implementation of the toll road project. We wish to take this opportunity to express our sincere gratitude to your agency and the Ministry of Foreign Affairs. We also wish to express our deep gratitude to the Ministry of Public Works as well as other Governmental Agencies concerned in the Republic of Indonesia for the close cooperation and assistance extended to us during the Study. We hope this report will contribute to the development of the Republic of Indonesia. Very truly yours, Dr. Hani Abdel-Halim Team Leader, The Study on Public-Private Partnership (PPP) Scheme for Trans Java Toll Road in the Republic of Indonesia LOCATION MAP TABLE OF CONTENTS Preface Letter of Transmittal Location Map Abbreviations Page CHAPTER 1 INTRODUCTION 1.1 BACKGROUND......................................................................................................... 1-1 1.2 OBJECTIVES OF THE STUDY ................................................................................ 1-2 1.3 STUDY CORRIDOR.................................................................................................. 1-2 1.4 SCOPE OF THE STUDY ........................................................................................... 1-2 1.5 SCHEDULE OF THE STUDY................................................................................... 1-4 1.6 ORGANIZATION OF THE STUDY.......................................................................... 1-4 PART I: YOGYAKARTA – SOLO – KERTOSONO TOLL ROAD DEVELOPMENT CHAPTER 2 DESCRIPTION OF THE PROJECT 2.1 BACKGROUND OF THE PROJECT ...................................................................... 2-1 2.2 OBJECTIVE OF THE PROJECT ............................................................................. 2-2 2.3 NECESSITY OF THE PROJECT ............................................................................. 2-2 2.3.1 National Mid-Term Development Plan ........................................................ 2-2 2.3.2 Infrastructure Road Map ............................................................................... 2-4 2.4 SOCIOECONOMIC CHARACTERISTICS IN PROJECT AREA .......................... 2-7 2.4.1 Population ..................................................................................................... 2-7 2.4.2 Economy ....................................................................................................... 2.7 2.4.3 Socioeconomic Framework .......................................................................... 2-9 2.5 ROAD NETWORK DEVELOPMENT .................................................................... 2-10 2.5.1 Arterial Road Network Development ........................................................... 2-10 2.5.2 Toll Road Development ................................................................................ 2-11 2.5.3 Indonesia Highway Corporation ................................................................... 2-15 2.6 TRANS JAVA TOLL ROAD ..................................................................................... 2-16 2.7 MAJOR COMPONENTS OF THE PROJECT ......................................................... 2-18 2.8 EFFECTS OF TOLL ROAD PROJECT ................................................................... 2-21 2.8.1 Direct Effects ................................................................................................ 2-21 2.8.2 Regional Effects ........................................................................................... 2-22 CHAPTER 3 TRAFFIC SURVEY AND DEMAND FORECAST 3.1 OBJECTIVES ............................................................................................................. 3-1 3.2 TRAFFIC SURVEY .................................................................................................. 3-1 3.2.1 Survey Method ............................................................................................. 3-1 3.2.2 Results of Traffic Survey .............................................................................. 3-3 3.3 DEMAND FORECAST ............................................................................................ 3-7 3.3.1 Basic Policy .................................................................................................. 3-7 3.3.2 OD Zoning System ....................................................................................... 3-7 3.3.3 Present and Future Trip Pattern .................................................................... 3-8 - i - 3.4 FUTURE TRAFFIC VOLUMES .............................................................................. 3-9 3.4.1 Basic Policy .................................................................................................. 3-9 3.4.2 Traffic Assignment Procedure ...................................................................... 3-9 3.4.3 Future Traffic Volume ................................................................................... 3-14 CHAPTER 4 COST ESTIMATION AND ECONOMIC ANALYSIS 4.1 REVIEW OF PROJECT COST ................................................................................ 4-1 4.1.1 Construction Cost ......................................................................................... 4-2 4.1.2 Land Acquisition Cost .................................................................................. 4-3 4.2 REVISED PROJECT COST ..................................................................................... 4-6 4.2.1 Major Items for Cost Estimate ...................................................................... 4-6 4.2.2 Review of Bridge Construction Cost ............................................................ 4-8 4.3 ECONOMIC ANALYSIS .......................................................................................... 4-11 4.3.1 Review of F/S Economic Analysis ............................................................... 4-11 4.3.2 Revised Economic Analysis ......................................................................... 4-14 4.3.3 Revised Economic Parameters ..................................................................... 4-15 PART II: FORMULATION OF PPP SCHEME CHAPTER 5 OVERVIEW OF PPP 5.1 BENEFITS OF PROMOTING PPP............................................................................ 5-1 5.1.1 Definitions of PPPs......................................................................................... 5-1 5.1.2 Objectives of PPPs ....................................................................................... 5-3 5.1.3 Progress in PPPs ........................................................................................... 5-3 5.1.4 Survey of PPP Progress by Areas ................................................................. 5-7 5.1.5 Type of PPP .................................................................................................. 5-8 5.2 FACTORS FOR SUCCESS AND FAILURE FROM INTERNATIONAL EXPERIENCES
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