ADB is helping Indonesia improve the investment climate to encourage private sector participation in infrastructure development. Subrprogram 2 of the project will continue to support reforms in the infrastructure sector by removing bottlenecks and increasing access to infrastructure services. It will also help facilitate the preparation of public-private partnerships.
|Project Name||Infrastructure Reform Sector Development Program (Subprogram 2)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Energy - Energy sector development and institutional reform
Information and communication technology - ICT strategy and policy, and capacity development
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 IRSDP, of which subprogram 2 is an integral part, aims to improve Indonesia's overall investment climate by removing infrastructure bottlenecks and increasing access to infrastructure services|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||The objective is to enhance infrastructure provision and access and thereby strengthen the investment climate, which will help realize the Government's medium-term macroeconomic goals, particularly in achieving an average annual GDP growth of 6-7% during 2005-2009. The expected outcome of the IRP is accelerated infrastructure development through large-scale PSP and increased public sector spending|
|Description of Outcome||
The pogram loans have three key reform pillars to support:
I. Strategic Cross-Sector Reforms, resulting in:
(a) Improved policy, legal and institutional framework for grater PSP that is anchored on good governance principles; (b) Well structured risk management framework that promotes PSP; and (c) Accelerated mobilization of domestic long-term financial resources for infrastructure development and the establishment of innovative funding mechanisms to finance PPP transactions and 9d) Streamlined regional autonomy framework, clearly delineating functional responsibilities between national and local governments in infrastrcuture provision.
II. Sector-Specific Policy, Legal, and Institutional Reforms, leading to:
(a) Improved financial soundness and sustainability of infrastructure services through full cost recovery; (b) Gretaer competition that benefits the consumers through improved service delivery and lower tariffs; (c) Independent regulatory structures that are distinct from the contracting and operating functions; 9d) A level playing field between different actors and the prevention of abuse of natural monopoly rights and (e) Fulfillment of the PSOs of infrastructure service providers, in line with the Government's poverty reduction objectives.
III. Preparation and implementation of well-structured project transactions, resulting in sound model PPP projects that can be replicated
|Progress Toward Outcome|
|Description of Project Outputs||The implementation of the IRP program cluster is likely to significantly accelerate public and private investments in infrastructure. By 2009, the program cluster will help the Government to boost the ratio of infrastructure investments from 2% of GDP now to 5% by 2009. In addition, at least about 40 sound PPP projects will be processed for bidding, in turn generating $20 billion in new investments by 2009.|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Not required|
|Responsible ADB Officer||Kausar, Rehan|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Indonesia Resident Mission|
National Development Planning Agency (BAPPENAS)
Jl. Taman Suropati No. 2
|Concept Clearance||10 Jan 2005|
|Fact Finding||08 Apr 2008 to 29 Apr 2008|
|MRM||01 Sep 2008|
|Approval||27 Nov 2008|
|Last Review Mission||-|
|PDS Creation Date||01 Dec 2008|
|Last PDS Update||20 Mar 2009|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Nov 2008||10 Dec 2008||18 Dec 2008||31 Mar 2009||-||18 Dec 2008|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||280.00||Cumulative Contract Awards|
|ADB||280.00||27 Nov 2008||280.00||0.00||100%|
|Cofinancing||0.00||27 Nov 2008||280.00||0.00||100%|
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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|Title||Document Type||Document Date|
|Loan Agreement for Infrastructure Reform Sector Development Program - Subprogram 2 between Republic of Indonesia and Asian Development Bank dated 10 December 2008||Loan Agreement (Ordinary Resources)||Dec 2008|
|Infrastructure Reform Program II||Initial Poverty and Social Analysis||Nov 2008|
|Infrastructure Reform Sector Development Program (IRSDP) Subprogram 2||Design and Monitoring Frameworks||Oct 2008|
|Infrastructure Reform Sector Development Program - Subprogram 2||Reports and Recommendations of the President||Oct 2008|
|Loan Agreement for Infrastructure Reform Sector Development Program Cluster - Subprogram 1 between Republic of Indonesia and Asian Development Bank dated 23 November 2006||Loan Agreement (Ordinary Resources)||Nov 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.
None currently available.
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