Indonesia: Infrastructure Project Development Facility

Sovereign Project | 40009-013 Status: Closed

Summary

ADB is helping Indonesia prepare public-private sector partnership projects to accelerate infrastructure development. The project will assist the government in establishing a project development facility to prepare infrastructure projects well, make them bankable, and bid them out in a transparent manner.

Latest Project Documents

Title Date
Loan Agreement for Infrastructure Reform Sector Development Project between Republic of Indonesia and Asian Development Bank dated 23 November 2006 Nov 2006
Infrastructure Reform Sector Development Program Oct 2006

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Project Name Infrastructure Project Development Facility
Project Number 40009-013
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0064-INO: Infrastructure Project Development Facility
Government of the Netherlands US$ 7.56 million
Loan 2264-INO: Infrastructure Project Development Facility
Asian Development Fund US$ 26.50 million
TA 4872-INO: Enhancing Private Sector Participation in Infrastructure Provision
Technical Assistance Special Fund US$ 2.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Energy sector development and institutional reform

Transport - Transport policies and institutional development

Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming No gender elements
Description The objective of the Project is to assist the Government, both national and regional, in preparing PPP projects effectively to increase PSP, resulting in improved availability and quality of infrastrucutre services. The Project has three components: (i) establishment of a national PDF (NPDF) to fund large-scale projects mostly in power, toll road, and trasnport sectors, and of a regional PDF (RPDF) to fund smaller-scale, decentralized infrastructure projects; (ii) technical advisory services to the PDF and capacity building for PPP project promotion and execution; and (iii) procurement and administrative services to the PDF.
Project Rationale and Linkage to Country/Regional Strategy

Under its Medium-Term Development Plan 2005-2009, the Government has identified five priority areas, one of which is infrastrucutre development by improving th eefficiency of existing services and greater PSP. The Government estimates that about $65 million will be needed in new infrastructure investments over the next 5 years, with about $16 billion of that to be met by national and foreign private sector investors. Following the January 2005 Indonesia Infrastructure Summit, the Government introduced several critical measures to strengthen the regulatory and institutional framework for PSP. In February 2006 a comprehensive short-term reform agenda for the various infrastructure sectors was issued as a decree (Infrastructure Policy Package). As part of ADB's Infrastructure Reform Sector Development Program, the Project is based on this agenda. By preparing and executing project transactions, it will boost Indonesia's competitiveness versus its regional neighbors.

In line with the Government's priorities, ADB's Country Strategy and Program 2006-2009 has identified five areas of long-term engagement for pro-poor, sustainable economic growth and Millennium Development Goal achievement. One of these operational areas is to improve infrastructure and infrastructure services, including rural infrastructure, with increased public and private sector investment, and improved sector regulation as indicators. The Infrastructure Reform Program cluster, with three subprograms over 2006-2010 and the PDF as part of the first subprogram, will be the main vehicle to help development infrastructure and infrastructure services.
Impact Improved investment climate and achievement of the Government's mediumterm macroeconomic goals through enhanced infrastructure provision and access

Project Outcome

Description of Outcome Accelerated infrastructure development through large-scale private sector participation (PSP) and mobilization of additional public sector resources
Progress Toward Outcome The PPP projects focus in regional area, with investment sizes range from $10 million to $2.2 billion
Implementation Progress
Description of Project Outputs Well-structured Infrastructure Public-Private Partnership (PPP) Projects Designed, Contracted, and Executed with sound model transactions in transportation, energy, and water supply and sanitation sector.
Status of Implementation Progress (Outputs, Activities, and Issues)

The Project has been managing about 24 PPP project preparations (pre-feasibility studies). 23 OBCs have been completed (or reviewed in the case the OBC is prepared by other institutions. The OBCs indicate that seven (7) projects were declared to be not feasible. Ten (10) projects are feasible to proceed with PPP scheme, but only seven (7) projects proceed to PQ stage and transaction under the Project. The remaining six (6) PPP projects, either dropped from the Project because of very low commitment of the GCAs, or the projects were directly financed by the Government, or other institutions.

Further, three (3) water supply projects were dropped at transaction stage as a consequence of the Constitutional Court Decision on annulment of Law No.7, year 2004, on water resources development.

The transaction for the Central Kalimantan Coal Railway has been concluded, and the contract is signed in January 2015. The Project is now in the process of financial close.

The transaction for the Batam Waste to Energy Project is halted because the Parliament of Batam City has not yet endorsed the tipping fee.

The transaction for Bandung Waste to Energy Project has been concluded but the mayor of Bandung City postponed the contract signing.
Geographical Location to be determined according to project proposals coming in

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Not yet due - the PPP identified projects are still either under assessment for preparation or transaction. The environment aspect will be assessed when the projects is economically and financialle feasible for PPP projects.
Involuntary Resettlement As of todate no involuntary resetllement is observed in the identified PPP projects.
Indigenous Peoples No indigenous people is observed under the identified projects.
Stakeholder Communication, Participation, and Consultation
During Project Design The candidate for PPP projects are identified during the implementation.
During Project Implementation Being done in every identified projects.

Business Opportunities

Consulting Services

A. Project Preparation and Transaction Execution

A1. National Project Development Framework: 10 packages

- 225 person-months of international consulting services

- 413 person-months of national consulting services

- International/national firms through QCBS or QBS

A2. RPDF: 40 packages

- 1,855 person-months of national consulting services

- International/national firms through QCBS

B. Technical Advisory Services and Capacity Building

B1. Several packages

-200 person-months of international consulting services

-540 person-months of national consulting services

-International/national firm through QCBS; and international/national individual consultants

B2. One package for BPJT legal and financial advisory support

- 36 person-months international consulting services

- international individual consultants

B3. Several packages for Public Private Partnership Central Unit (P3CU) support

- 36 person-months of international consulting services

- 84 person-months of national consulting services

- International/national firm through QCBS; and international/national individual consultants

B4. Several packages for PPP strategic campaign

-100 person-months of national consulting services

- National/international firms through CQS

B5. Several packages for PPP study

- 64 person-months of national consulting services

- National/international firms through CQS
Procurement No procurement of goods or works are anticipated under the Loan.

Responsible Staff

Responsible ADB Officer Renadi Budiman
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
National Development Planning Agency (BAPPENAS)
Dedy Priatna
[email protected]
Jl. Taman Suropati No. 2, Jakarta 10310

Timetable

Concept Clearance 10 Jan 2005
Fact Finding 03 Mar 2006 to 12 Mar 2006
MRM 25 May 2006
Approval 21 Nov 2006
Last Review Mission -
PDS Creation Date 04 Dec 2006
Last PDS Update 25 Sep 2015

Grant 0064-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2006 23 Nov 2006 29 Nov 2006 30 Sep 2012 - 31 May 2011
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 7.56 Cumulative Contract Awards
ADB 0.00 21 Nov 2006 0.00 5.64 75%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 7.56 21 Nov 2006 0.00 2.96 39%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2264-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2006 23 Nov 2006 29 Nov 2006 30 Sep 2012 31 Dec 2015 01 Feb 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 31.60 Cumulative Contract Awards
ADB 26.50 21 Nov 2006 22.17 0.00 100%
Counterpart 5.10 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2006 22.17 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 4872-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2006 12 Apr 2007 12 Apr 2007 31 Dec 2011 30 Jun 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 21 Nov 2006 1,639,787.84
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Loan Agreement for Infrastructure Reform Sector Development Project between Republic of Indonesia and Asian Development Bank dated 23 November 2006 Loan Agreement (Special Operations) Nov 2006
Infrastructure Reform Sector Development Program Reports and Recommendations of the President Oct 2006

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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