PPP IDENTIFICATION AND PPP PLANNING

Transcription

1 PPP IDENTIFICATION AND PPP PLANNING Mohammad Taufiq Rinaldi Planner Directorate of PPP and Financial Engineering Ministry of National Planning Agency/BAPPENAS Republic of Indonesia Asia PPP Practioners Network Conference Seoul, November 2017

2 2 Strategy On Infrastructure Development Fulfillment of Basic Needs 100% Drinking Water access 100% sanitation access Connectivity Maritime Highway + Regional Development/ Growth Center Infrastructure to support Leading Sectors Marine Highway Intermodal Regional Development/ Growth Center Leading Sector Agricultural Urban Transport Development of Road,Rail Based Mass Transport System & Intermodal Improve the capacity and quality of the urban road network Urban Transport Development Concept 96.6% electrification ratio Avoid Shift Improve Livable housing access Border & underdeveloped regions accessibility Transportation Safety & Security Developed Area Intermodal Port Area Intermodal Broadband Development: e-government, e-health, e-education, e-logistic, e-commerce, Energy Development: 35 GW Target 1,200 kwh/capita in 2019 ( current facts: Vietnam 1,300 kwh/capita, Malaysia 4,400 kwh/capita) Under- Developed Area Manufacturing Service and Tourism Network to Support Efficiency Journey Increased share of Public Transport Develop sustainable urban transport Increased utilization Technology Transportation Institutional integration Transportation Institutional integration

3 Investment Needs and Strategy Investment Value (The Sources) Public Investment: Provision of Public Facilities Total Value of Investment Required in Infrastructure * : Government Budget: USD 148.2Bn (41.3%) SOE : USD 79.8Bn Category Definition low Social Investment Investment that does not possess direct investment feedback to the object. IRR Weighted Average Cost of Capital (WACC) Special Commercial PPP Investment Investment with yields under eligibility standards so it needs partly investment reduction from the Government s social investment. Investment with yields meeting investment eligibility standards but seen as less attractive or risky as government intervention is needed. high General Commercial Investment Investment with attractive yields as role of government is reduced for regulating and promoting. USD 359.2Bn (IDR 4,796.2Tn) (22.2%) Private Participation: USD 131.1Bn (36.5%) Example Source of Funding Social Security Education Security Health Security Government funding (APBN & APBD) Drinking water material Mass public transportation Government funding + commercial funding Toll road Ports Commercial funding promoted by the government Electricity Airports Gas pipe Commercial funding Source: BAPPENAS Internal Analysis *) 1 : Calculation based on infrastructure investment (required) to be a middle income country by Source: Bappenas- JICA, 2014: Background Study for RPJMN , Analyst team of Ministry of National Development Planning (BAPPENAS) RPJMN: National Medium-term Development Planning Non-Government Budget Investment Financing (PINA) For s with IRR > 13 % 3

4 4 Annual Planning And Budgeting Process Evaluation Development Theme, Goals, Policy Direction & Priorities Review on Basic Number KEM PPKF & Budget Availabilty Draft Annual Plan (RKP) & Indicative allocation First Discussion with Parliament President Regulation on Annual Plan and Budget allocation Draft State Budget Discussion with Parliament for State Budget Law State Budget Law and Budget Allocation December/ January January February February March May June July/August August/ September November PPP Identification and Priorities Programs and activities proposal for supporting implementation and sustainability of PPP Approval Programs and activities budget for supporting implementation and sustainability of PPP

5 5 Decision Making for Infrastructure Financing Line Ministry Budget (State Budget) Proposals Proposals Proposals Evaluation and Decision for Suitable Financing for Priority (e.g Value for Money -VfM) Transfer to Local Budget (State Budget) Local Budget Priority PPP Non-Government Budget Investment Financing (PINA)

6 THIS Planning Thematic Holistic Integrative Spatial Proposals Proposals Proposals Priority Thematic Focus on long/mid-term plan to national priority Holistic interconnection process from beginning to end Integrative Integration of various institution programs and financing Spatial focus on space and location PPP on National Development Planning and Budgeting under Bappenas Coordination: Preparation Transaction Government Contribution (In kind provision, Special Allocation Fund, VGF) Availability Payment Integrative infrastructure and programs in supporting PPP Local Government Contribution Example: Umbulan Water Supply VGF (MoF) In Kind Provision (MoPW) Special Allocation Fund (Bappenas and MoF) Land acquisition and access road (Local government 6

7 There Are 19 Sectors Covered For PPP In Indonesia Transportation Energy Conservation Electricity Seaports Roads Airports Railways Road Transportation Toll Roads Power Plants Fiber Optic Toll Bridges Transmission e-gov Street Lighting Oil, Gas, and Renewable Energy Road Telecommunications and Informatics CONNECTIVITY Water Supply SOCIAL FACILITIES URBAN FACILITIES Centralized Waste Water Management Localized Waste Water Management Tourism Sports, Art, and Culture Facilities Urban Facility Penitentiary Education Facilities Health Public Housing Waste Management System Water Resources and Irrigation Traditional Market Zone 7

8 Private as the project innitiator (UNSOLICITED) Government as the project innitiator (SOLICITED) PPP Stages in Indonesia Solicited and Unsolicited Schemes PLANNING PREPARATION TRANSACTION Preliminary Identification Study Outline Business Case (OBC) Final Business Case (FBC) Pre Qualification Request for Proposal Bid Award PPP Agreement Signing Financial Close Construction USD 8.8 billion proponent submits a proposal and pre-fs document to GCA Business Entity submits FS Pre-FS document evaluation to get pre-fs approval GCA gives the rights to project proponent to prepare FS FS evaluation Issuing approval letter Tender Preparation. PPP Agreement Signing Financial Close 12 projects include 2 unsolicited toll road projects: Krian Legundi Bunder Manyar (USD 0.9 billion) Jakarta Cikampek Elevated II (USD 0.1 billion) Jatiluhur Water Supply (USD million) GCA: Government Contracting Agency 8

9 9 Successful PPP Schemes in Indonesia There are 6 implemented schemes as benchmarks for future PPP projects PPP projects based on structure development PPP projects based on project preparation Government Guarantee Coal-Fired Power Plant Central Java 2x1000 MW (USD 4,200.0 million) Success Fee Scheme Coal-Fired Power Plant Central Java 2x1000 MW (USD 4,200.0 million) Tariff & Viability Gap Fund (VGF) Umbulan Drinking-Water Facility (USD million) Bangun Cipta Kontraktor Unsolicited PPP Jakarta Cikampek II Elevated Toll Road (USD million) PT Ranggi Sugiron Perkasa Availability Payment (AP) for Investment Return Palapa Ring Optic-Fiber Network (USD million) Government In-Kind (Construction Support) Solo Kertosono Toll Road (USD million) Cisumdawu Toll Road (USD million) Balikpapan Samarinda Toll Road (USD million) Manado Bitung Toll Road (USD million) Total: USD 2,318.8 million

10 PPP PIPELINE PPP TARGET Public Private Partnerships (PPP/KPBU) Progress A. PROJECT VALUE Construction USD 8.8 billion USD 0.6 billion Financial Close USD 0.6 billion USD 3.5 billion Transaction until PPP Agreement Signing Preparation B. PROJECT SUMMARY Construction 12 1 Transaction until PPP Agreement Signing 10 Quick Win s 2018 (total project value: USD 3.6 billion) 1. Serang Panimbang Toll Road 2. Jakarta Cikampek South Toll Road 3. Probowangi Toll Road 4. Nambo Regional Waste Management 5. Bandar Lampung Water Supply 6. Jatiluhur Water Supply USD 3.5 billion USD 6.8 billion + 5 Under Calculation s USD 0.1 billion USD 6.7 billion + 12 Under Calculation s Financial Close Preparation Suramadu Toll Bridge 8. West Semarang Water Supply 9. Pekanbaru Regional Water Supply 10. Sidoarjo General Hospital Source: BAPPENAS Internal Analysis 10

11 PPP Institutional Breakthrough CAPITAL PLACE, 8 TH FLOOR JALAN JENDERAL GATOT SUBROTO KAV. 18 JAKARTA SELATAN PHONE: PPP Office Coordination and Facilitation based on each institution : Bappenas is responsible in identification and planning (coordination for preparing project and integrating with national development planning) MoF provides fiscal support facility (PDF and VGF Facility) MoHA gives consideration on regional fiscal related with Regional AP LKPP acts as transaction probity BKPM makes sure investors credibility and market sounding process CMEA acts as debottlenecking facilitator PT. Penjaminan Infrastruktur Indonesia (Persero)/IIGF does government guarantee process Capacity Building 11 11

12 PPP Office Workflow In Indonesia Government Contracting Agency (GCA) as Implementing Unit GCA Bappenas (Planning) BKPM makes sure investors credibility and market sounding process Ministry of Home Affair gives consideration on regional fiscal related with Regional AP IIGF informally gives an input on OBC and FBC development process Bappenas plans OBC budget LKPP acts as transaction probity IIGF does government guarantee process PPP Unit under MoF provides PDF and VGF facility Parcitipating Institutions Coordinating Ministry of Economic Affairs Ministry of National Development Planning/BAPPENAS Ministry of Finance Ministry of Home Affairs National Procurement Agency (LKPP) National Investment Coordinating Board (BKPM) Indonesia Infrastructure Guarantee Fund PQ RfP PPP Agreement Signing Construction and Operation Stage Identification and Proposal Feasibility Study OBC Development FBC Development Bid Award Financial Close Screening and Selection Stage Preparation Stage Transaction Stage The Coordinating Ministry of Economics Affairs as Debottlenecking Facilitator BKPM : Investment Coordinating Board IIGF : Indonesia Infrastructure Guarantee Fund Bappenas: Ministry of National Development Planning MoF LKPP PQ : Ministry of Finance : National Procurement Agency : Pre-Qualification RfP : Request for Proposal OBC : Outline Business Case FBC : Final Business Case AP : Available Payment 12

13 13 Summary PPP is one of solutions for fulfilling financial gap in infrastructure investment. Once decided as PPP, many programs needs to be provided in order to make PPP sustain (using T H I S Approach). BAPPENAS, as a planning agency, coordinates, facilitates and plans all the programs that integrate with the development of PPP in order to fulfill or to serve people need and also to make PPP sustain. Moreover BAPPENAS ensures PPP and all supporting programs inline with National Development Planning.

14 감사합니다 Kamsahamnida Thank You Terima Kasih Find us at: Directorate of PPP and Financial Engineering Ministry of National Development Planning/BAPPENAS Gedung Baru, 4 th floor Jalan Taman Surapati No. 2 Jakarta Pusat Indonesia Phone: pkps@bappenas.go.id 14 14