PPP – PROJECT DIGEST 19 Sectors Covered for PPP in Indonesia CONNECTIVITY URBAN SOCIAL INFRASTRUCTURE Road INFRASTRUCTURE Water supply . Toll Roads Tourism . Toll Bridges . Roads Transportation Waste management . Seaports system Education facilities . Airports . Railways Water resources & . Road transportation irrigation Electricity Sports, art & culture . Power plants facilities . Transmission Localized waste water management Energy conservation Health . Street lighting Centralized waste Oil, Gas, and water management Renewable energy Public housing Zone/ Estates Telecommunication & Informatics . Fiber optics . E-government Urban facility Penintentiary . Satellite . Traditional market 2 2 Solicited PPP Project Pipeline 10 under construction projects and 33 on progress projects PLANNING PREPARATION TRANSACTION CONSTRUCTION Preliminary Tender PPP Agreement Outline Business Case Final Business Case PQ Request for Bid Award Financial Close study (OBC) (FBC) Preparation Proposal Signing 1. Manado - Bitung Toll 1. Riau Non-Toll 1. Yogya - Bawen Toll 1. Semarang – Demak Toll 1. Serang - Road Road Road Road Panimbang 2. Balikpapan - 2. South Sumatera 2. Surakarta Street 2. Surabaya - Madura Toll Toll Road Samarinda Toll Road Non-Toll Road Lighting Bridge (Government 3. Pandaan - Malang 3. Labuan bajo 3. Multifunction Satellite 3. Medan Municipal side 33 km) Toll Road Airport 4. National Integrated Transport (LRT) 2. West 4. Batang - Semarang 4. Makassar- Welfare System 4. Pekanbaru Regional Semarang Toll Road parepare Railway 5. Dharmais Cancer Water Supply Water Supply 5. Serpong - Balaraja 5. UNDIP’s Marine Hospital 5. University of Sam Toll Road Institute 6. Nusakambangan Ratulangi Teaching 6. Umbulan Water 6. ITB Cirebon Industrial Correctional Hospital 1. Jakarta -Cikampek Supply 7. UIN Malang Facility 6. Sidoarjo General Hospital South Toll Road 2. Probowangi Toll 7. Central Java Power Dormitory 7. Correctional Facility 7. Pirngadi Hospital Road Plant 8. UGM Teaching Relocation (Ciangir) 3. Cisumdawu Toll 8. West Palapa Ring Hospital Road 9. Central Palapa Ring 9. UIN Jakarta 4. Serang - 10. East Palapa Ring Teaching Hospital Panimbang Toll 10. UIN Makassar Road (PPP 51 km) Teaching Hospital 5. Bandar Lampung 11. Udayana Water Supply Teaching Hospital 6. Nambo Regional Waste Management Data per 21/02/2018 TOTAL: US$ 3.0 billion + 11 under calculation projects TOTAL: US$ 4.0 billion TOTAL: US$ 7.8 billion 3 3 Unsolicited PPP Project Pipeline 2 under construction projects and 3 on progress projects Private as the project innitiator (UNSOLICITED) Project proponent submits PPP a proposal and pre-FS Business Entity FS evaluation Procurement Agreement Financial document to GCA submits FS Signing Close Construction . • Pre-FS document evaluation to Issuing approval letter: get pre-FS approval; 1. Establishing the project as an Construction • GCA gives the rights to project Unsolicited Project; 1. Karian Water proponent to prepare FS Jatiluhur Water Supply 2. Establishing the business entity as Supply (US$ 123.7 million) the project initiator. 2. TOD Poris Evaluation 1.0 Billion USD Plawad Criteria 2 Toll Road Projects Compensation option • Krian – Legundi – Technically integrated with Bunder – Manyar the sector’s master plan to the project initiator (US$ 0.9 billion) • Jakarta – Cikampek 4 Economically and Elevated II financially viable Additional mark of The GCA (US$ 0.1 billion) 10% on the Right to match purchase the The business entity that proposes the initiative has adequate financial procurement score PPP initiative capability to finance the project. Data per 21/02/2018 4 4 PPP PROJECTS UNDER TRANSACTION 5 SERANG – PANIMBANG TOLL ROAD (33 KM) LOCATION: West Java Sector: Road Sub-Sector: Toll Road Government Contracting Agency : Indonesia Toll Road Authority (“BPJT”) Contact Person : Mr. Herry Trisaputra Zuna (Head of BPJT) +62-21-7258063; e-mail: [email protected] or [email protected] Estimated Concession Period : 40 years Estimated Project Cost : US$ 251.9 million Indicative Project Structure Description : Financial Feasibility: Serang – Panimbang Toll Road is located in Banten FIRR : 10.52% NPV : US$ 5.5 million Province where the toll reaches from Jakarta to Tanjung Public Lesung Special Economic Zone. Furthermore, one of the Service Agency (BLU) attractive points for the development of this toll road is BPJT that it will have tremendous facilities, such as the Indicative Government Support & Guarantee: development of residential areas and commercial areas Several risks from the Government which can be along the corridor. The return on investment for this potentially guaranteed by IIGF. project is through Availability Payment method. Creditor Implementation Schedule (ETA): Business Opportunity: 1. Preparation : 2016 Transaction adviser/bidder/financier Toll Revenue 2. Land Acquisition : 2017 3. Construction : 2018 Project Status: 4. Operation : 2019 Project is currently on PQ phase 6 SERANG – PANIMBANG TOLL ROAD (51 KM) LOCATION: West Java Sector: Road Sub-Sector: Toll Road Government Contracting Agency : Indonesia Toll Road Authority (“BPJT”) Contact Person : Mr. Herry Trisaputra Zuna (Head of BPJT) +62-21-7258063; e-mail: [email protected] or [email protected] Estimated Concession Period : 40 years Estimated Project Cost : US$ 763.0 million Indicative Project Structure Description : Financial Feasibility: Serang – Panimbang Toll Road is located in Banten FIRR : 9.90% (without Government in-Kind) or 12.19 % (with Government in-Kind) Province where the toll reaches from Jakarta to Tanjung NPV : US$ 46.4 million Public Lesung Special Economic Zone. Furthermore, one of the Service Agency (BLU) attractive points for the development of this toll road is BPJT that it will have tremendous facilities, such as the Indicative Government Support & Guarantee: development of residential areas and commercial areas VGF (the financial calculation is assumed at US$ 192.6 million), several risks from the Government which can along the corridor. be potentially guaranteed by IIGF. Creditor Implementation Schedule (ETA): 1. Preparation : 2016 Toll Revenue Project Status: 2. Land Acquisition : 2017 Project is currently on PPP Agreement Signing phase 3. Construction : 2018 4. Operation : 2019 7 JAKARTA – CIKAMPEK II SOUTH SECTION TOLL ROAD LOCATION: Bekasi, West Java Sector: Road Sub-Sector: Toll Road Government Contracting Agency : Indonesia Toll Road Authority (“BPJT”) Contact Person : Mr. Herry Trisaputra Zuna (Head of BPJT) +62-21-7258063; e-mail: [email protected] or [email protected] I I Estimated Concession Period : 35 years C C - - Estimated Project Cost : US$ 1,367.0 million Indicative Project Structure 2 3 70% 30% Bank (Debt) Equity Financial Feasibility: ( 70% ) ( 30% ) FIRR : 12.52% Description : NPV : US$ 2.6 million Traffic volume through the Jakarta - Cikampek toll road National PPP Agreement Toll Road SPV capacity has exceeded the V/C ratio high of 1.51. The User Authority (BUJT) Corridor plan of this Section toll road is located in the (BPJT) Government and SPV Obligations Tariff area of the administration of the West Java Province Indicative Government Support & Guarantee: Project’s authorization risk, construction delay risk and Regress Guarantee with: the city of Bekasi, Bogor District, Bekasi District, Agreement Agreement payment risk. Statement from Government to PT PII Co-guarantee Agreement with Karawang, and Purwakarta District. Regress guarantee this project is also required. Ministry of Finance Ministry Payment of Finance Implementation Schedule (ETA): 1. Preparation : 2017 Project Status: 2. Land Acquisition : 2017 - 2018 Project is currently on PPP Agreement Signing phase 3. Contract Award : 2017 4. Construction : TBC 5. Operation : TBC 8 PROBOLINGGO – BANYUWANGI TOLL ROAD LOCATION: East Java Sector: Road Sub-Sector: Toll Road Government Contracting Agency : Indonesia Toll Road Authority (“BPJT”) Contact Person : Mr. Herry Trisaputra Zuna (Head of BPJT) +62-21-7258063; e-mail: [email protected] or [email protected] Estimated Concession Period : 45 years Estimated Project Cost : US$ 900.0 million Indicative Project Structure 70% 30% Bank (Debt) Equity Financial Feasibility: ( 70% ) ( 30% ) Description : IRR : 11.8% This project is expected to play an integral part of East NPV : US$ 45.9 million National Java Road System. It is 172 km in length which PPP Agreement Toll Road SPV User connected Probolinggo and Banyuwangi, crossing three Authority (BUJT) (BPJT) Government and SPV Obligations Tariff districts in East Java including Situbondo district. Each Indicative Government Support & Guarantee: district has different potential resources which still Detail assessment of the required Government support should be developed. Regress Guarantee and guarantee, in terms of form and scale, for the Agreement Agreement PT PII Co-guarantee Agreement with project is needed. It will be identified and specified in Regress Ministry of Finance the subsequent studies. Ministry Payment of Finance Implementation Schedule (ETA): 1. Preparation : 2017 Project Status: 2. Land Acquisition : 2017 - 2018 Project is currently on PPP Agreement Signing phase 3. Contract Award : 2017 4. Construction : TBC 5. Operation : TBC 9 CILEUNYI – SUMEDANG – DAWUAN TOLL ROAD LOCATION: West Java Sector: Road Sub-Sector: Toll Road Government Contracting Agency : Indonesia Toll Road Authority (“BPJT”) Contact Person : Mr. Herry Trisaputra Zuna (Head of BPJT) +62-21-7258063; e-mail: [email protected] or [email protected] Estimated Concession